| Finances are always a constraint while wanting to | | | | restricted to those two things. It can be anything of real |
| purchase a car. It is not possible to buy a car through | | | | value. The amount that can be got with secured car |
| one's monthly income. There are a privileged few, who | | | | loans is greater than what one gets with an unsecured |
| can do this without having to procure finances from a | | | | car loan. The ratio is roughly 3:1. Still, the dangers are |
| secondary source. The others will have to look at that | | | | manifest. With a secured car loan, if a borrower does |
| source, which we know as car loans. | | | | not repay the amount in time, the lender can |
| Car loans can be availed in both the unsecured and | | | | repossess the security. Another advantage with a |
| the secured forms. The greatest advantage with an | | | | secured car loan is that it can be borrowed for a |
| unsecured loan is that the loan taker is not putting | | | | longer time. |
| anything of value at risk, for example, the home. There | | | | When a borrower decides to take a car loan, they |
| are others who simply don't have anything to offer as | | | | should do so with discretion. There are two types of |
| collateral. For them, the unsecured car loan option is | | | | loans available for them to take. There is no sense in |
| the only viable option. Another advantage with | | | | someone with a shaky financial base to take a |
| unsecured car loans is that the documentation process | | | | secured car loan. Barring a sudden improvement in the |
| is much less. In other words, the paperwork associated | | | | loan taker's financial situation, he is bound to default |
| with secured loans is missing. | | | | when the repayment period comes to an end. |
| With secured loans, things are a little different. The car | | | | Car loans can be availed from sources like the Internet, |
| loans can be secured against a home or the car the | | | | private lenders, banks and building societies. |
| loan taker is buying. Of course, the collateral is not | | | | |