Owning a car is often almost necessary in Finnish circumstances. Whether it’s getting your first car or replacing an old trackball with a new one, it’s not uncommon for a car to finance it. Today, introducing four different financing options for car purchasing with good and bad sides. Find the best way to finance your own situation with our help desk!
Funding from your own bag
One (quite good) option is to buy a car with your own savings. Currently, the savings account rates are fairly low, so there is little money to lose money in the bank. However, if you buy a car with your own savings, it is important to note that after the acquisition cost there is still enough buffer fund for bad days . It is also worthwhile paying for the car partly with savings: The less debt you need to take, the shorter the loan period and the lower total cost of the loan.
The best part of saving a car is to avoid the extra costs associated with the loan. Even if the loan rate is low, the loan will always incur additional expenses such as opening fee, account management fees and, of course, interest expenses.
However, if you do not have the money you need to buy a car, you may not be able to delay buying a car when you get the money saved yourself. Read the justifications here .
A car loan is a typical way of financing a particularly expensive car purchase. You can apply for a car loan both secured and unsecured. However, it is not wise to put a car loan other than a car to buy a car, so that, in the event of payment difficulties, you will not lose your summer cottage, for example.
Also read: Where to get a loan – and where not?
The bad side of the car loan is that the total price of the car becomes higher than the actual purchase price of the car because of the additional costs of the loan. The good side of the car loan, however, is that by borrowing the car you get it right away, unlike waiting for you to save the car purchase price entirely by yourself. There are, however, differences in car loan prices , so it is important to remember to compare the loans before making a loan decision