Business, Car Credit Crunch


by ISLA CAMPBELL - Date: 2008-07-01 - Word Count: 504 Share This!

Most adults nowadays use cars as their primary mode of transport and with some families having multiple vehicles in their driveway there is always a demand for new models. Whether it's the commute to work, going on holiday or simply driving for pleasure, cars have had a significant role in shaping modern life. For many, buying a car is often the second most expensive investment - after accommodation - that they will ever make.

Much like the housing market, car prices go through peaks and troughs. Obviously, getting a car at a lower price is the most desirable option but sometimes the need for a new vehicle is urgent and waiting for prices to drop is not practical. Ordinarily during price fluctuations, it is the cars at the top end of the range that see the least variation in price, which is good news for the movers and shakers of society but for those looking for a modest upgrade or perhaps a first car, a credit crunch can have severe ramifications on their plans.

During a credit crunch it is harder to secure funding and many people find themselves putting off a desired purchase or upgrade because they think they can't get enough money. Whilst trading in an old car in part-exchange may be an option to cut down on expenses, this is not possible for everyone.

For many teenagers, buying their first car is a life defining moment as it gives them a new sense of independence. They no longer have to depend on the taxi service that their parents have provided so far in their life and this freedom often leads to a more vibrant social life. However, if their entire savings have been spent on buying that dream car, there will not be much money left over to keep the car running or to spend on little luxuries.

Buying a car can severely stretch the finances of the majority of people so applying for car credit is seen to be a viable alternative to dipping in to life savings or asking for a bank loan. There are many specialised companies who cater for just this market and although you may not be sure if you are eligible to apply, their terms and conditions will clearly state who is suitable. Even if your credit record is not perfect you may be considered.

Many loans are secured on an item you normally own. However, car credit is often secured against the car you are buying, meaning that if for some reason you weren't able to keep up payments it would be the car itself that you lost. But if you work out your budget before you sign any contracts, as long as you stick to your plan then you should soon be driving your own brand new car.

As a fan of article content and as a professional working for a digital marketing agency, Isla Campbell hopes you enjoyed her article but urges you to treat it as corporate content with business interests.


Related Tags: loans, driving, buy a new car, car credit, credit crunch, car finance providers

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