Ellen Ferretto was discouraged in a matter of minutes after learning her local Houston, Texas car dealership was going to charge her $450 a month to purchase a used car at 9% interest rate. Ferretto knew she was being overcharged, and desperate. Her current vehicle wasn’t working, she owed money on it, and trading it in wasn’t an option. How can she purchase a vehicle with funding outside of the traditional bank loan?
Options for Alternative Financing Exist
It’s quite easy to see a traditional bank or car dealership loan as the only option, yet it is far from it. Non-traditional ways of financing the purchase of a used car are more prevalent than ever. For example, consumers can turn to crowdfunding to get the financing necessary often with less hassle and lower rates.
Personal loans and credit cards provide an additional avenue. Purchasing a used vehicle using a credit card is expensive but works well for buyers expecting a lump sum of income in the foreseeable future. The solution most suited to urgent situations are flexible online providers who can respond to a loan request within minutes.
Before getting financed, consumers should be aware of at least the following:
A personal loan is perhaps the most practical of the non-traditional methods to purchasing a vehicle. Yet, finding one can be a struggle. Some lenders and credit unions offer them only to those with good credit.