Vehicle Financial Loans

financial loans Most of us cannot simply write a check to buy a vehicle. They have price tags in the thousands and tens of thousands. Financial loans for the purchase of a vehicle is the way most of us acquire them. Vehicle loans are considered secure loans since the vehicle itself is the collateral used as a loan. Interest rates tend to be low for these types of loans. Defaulting on the loan leads to repossessing of the vehicle by the lending agency so the risk to them is lower than for an unsecured loan.

  • New auto loans are available for a vehicle that has no previous owner. They would be for the current or prior year’s model. Financing is usually available for up to seven years.  Refinancing is also available for these loans if the vehicle is depreciating slower than the loan is being paid off.
  • Used auto loans are available for a vehicle that has had a previous owner. The interest rate is dependent on the model year.  Older vehicles would have a higher interest rate. This is because, in case of loan default, an older vehicle would have less value to the lending agency. Therefore their risk is higher.  The higher interest rate means they get paid more with each month than for a lower interest rate. Financing can be available for about 6½ years for vehicles ten years old or less and 5 years for older vehicles. These loans can also be refinanced if the vehicle is a later year model and the loan is getting paid off faster than the vehicle depreciation.
  • Lease-like hybrid auto loans combine a traditional loan with lower payments and a balloon payment at the end if you choose to keep the car. If not, you can walk away from the car. There may be a disposal fee as well as fees for excessive wear and tear and mileage, just like a lease. The financing is available for up to four years.
  • Motorcycle loans are similar to auto loans. They can usually be financed for up to five years.
  • RV loans are financed based on the value of the RV. The loan terms can be up to five years for lower loan amounts up to fifteen years for higher loan amounts. Interest rates increase with the length of the loan.

Cash Advances

Cash advances are best used only for emergencies and as a last resort. Interest rates can be very high for these types of loans. They often have large finance charges in addition to the interest charged

  • Credit cards offer cash advances that then become part of your credit card balance. They have the same repayment terms as purchases made with the credit card but a higher interest rate to make up for the fee they do not get from the merchant you purchase something from.
  • Payday loans have very short terms – just until your next paycheck.  Their fees and interest rate are the highest of all types of financing. These loans should only be used as a last resort for an emergency.
  • Income tax refund loans are offered by tax preparation companies against your tax refund. When they file your taxes and the IRS sends your refund, the loan amount is due in full.

Credit Cards

Credit cards are a type of loan called a revolving line of credit.  They have a maximum spending limit and charge interest on whatever the balance of this loan is.  You can add to the balance with any purchase you make.  There is a monthly payment that is a percentage of the balance on the card with a minimum payment of $25 or so for small balances. Credit cards have a grace period after the statement date so that no interest is charged if you pay the entire balance in full.

  • Credit cards have variable interest rates that can be quite high. The merchant pays a fee for having the ability to use credit cards and you pay interest on an unpaid balance. Credit cards are often necessary for holding hotel reservations or for renting cars.
  • Reward credit cards give you reward points for every dollar you spend.  The rewards programs vary by the credit card issuing company. The interest rate for these cards is slightly higher than for the cards without a rewards program.

Personal Financial Loans

Personal loans are unsecured loans to use for whatever purpose you may deem necessary. They can be used for debt consolidation, purchases for which you do not or cannot use a credit card, home repairs, paying off tax debt, etc. These are short-term loans.  TGUC Financial offers personal loans.

Small Business Loans

Small business loans are available for starting up or growing a business. Some lenders require a business to be at least two years old before they will extend financing.

  • Business lines of credit are designed for short-term needs such as covering seasonal expenses before the money-making season (such as purchasing garden supplies in late winter or Christmas merchandise in late summer), covering short-term payroll needs, or taking advantage of a business opportunity. These can be unsecured loans.
  • Business vehicle loans are used for buying commercial and passenger vehicles to be used for your business.  Different amounts of the purchase price may be financed depending on the type of vehicle purchased. Financing is available for up to 6½ years. The fixed interest rate helps you with your future budgeting since the payment will stay the same.
  • Business small equipment loans are like business vehicle loans. They are fixed rate and available for financing up to 6½ years. You can finance up to 80% of the value of the equipment. This loan does not require collateral since the purchased equipment secures the loan
  • Business working capital loans are fixed interest loans to update your work environment, update technology used for your business, or increase inventory. These loans are fixed-rate and can have terms up to five years. You can borrow up to 80% of the value of all your business assets. An All Business Assets goes into place which secures the loan.

TGUC Financial For All Your Loan Needs

TGUC Financial has financing plans available for all of your financial needs.  Start the process today or contact us if you have more questions.