Finding the right car loan can be intimidating. With so many products available, it’s often a challenge to select the best possible deal for your circumstances – a good interest rate, repayments and conditions to suit your budget. With just a bit of background knowledge, however, things can get a lot easier.
What’s my budget?
Your first step should be figuring out how much you can afford to put towards your loan. Paying it off sooner with large repayments might seem like a good idea, but make sure they don’t leave you struggling financially. Know how much you need to borrow, what you can afford to repay, and whether it falls within the lender’s limits.
What can I access?
Be sure to look at your credit history. Making multiple loan applications in a short space of time will lower your credit score, making it harder to get loans in the future. Work out which car loan works best for you, and then make your application.
Variable or fixed rate?
Carefully consider which rate will work for your repayment plans long-term. A fixed rate will remain the same throughout the life of the loan, whereas a variable rate may be lower or higher depending on the market.
Flexibility and extra features?
Some loans will include flexible repayment options, letting you make additional payments or make other purchases with the loan amount using the car as security. If any are of interest, take note of how these and any other extra features will affect your budget’s bottom line.
The alternative to shopping around yourself is working with a loan broker, who will help to define your budget and compare options. By choosing FINANCIA as your broker, we can talk you through the features and benefits to find the best possible car loan, getting you on the road sooner.