Vehicle loan is a personal loan for purchasing any the vehicle. Now a days many banks are providing the vehicle loans. Below mentioned are some of the types of vehicle loans.
a. Buy here pay here dealership loan: This a type of loan that is prepared against the people with bad credit or no credit at all. These loans have high interest rates. Dealership from which you bought the vehicle, underwrite this loans. These loans are generally set up as monthly payments.
Penalties for late payments are harsh for these loans. Generally dealership won’t give you second chances to make your payments.
b. Sub prime vehicle loan: This another type of loan and this loan is given to people with bad credit, but this is generally by lending institutions or by banks. They have high interest rates and as well strict terms. It is expensive, but if you want help your credit then it is a great way to do it.
c. Vehicle loan refinancing: Means you have to pay interest for another 5 years on your loan again. But in some cases this loan can also cut the monthly payment almost in half. If you have problems in making your payments then it might be the path to go.
d. Standard vehicle loan: This is a type of loan and is best for anyone. If you have good credit and if you are able to bring a sizable down payment to the table then there are number of lenders. You should be able to negotiate some nice terms to your loan.