Everyone dreams of owning their own vehicle. Most of you are lucky to own a car by the time you are 16. Once you are earning enough to purchase a new car and you go for an automobile out of your budget, you slowly end up facing difficulty in paying off the car payments on time. The number of people facing this problem is rising at an alarming rate. When you buy a car, one of the key things you need to keep in mind is that it is something you can afford and it meets your budget. That way you will not end up as one among those trying hard to meet their car payments.
To get the best loan deal, there are quite a few things you need to keep in mind. We try and look at some key things you need to do your homework on before getting a car loan.
Credit Reports
You should be aware of your credit reports before you think of applying for a car loan. You can get a clear standing of your credit from the Australian Information website. You can also avail free services from other agencies across Australia to know what your credit score is. You can look at the credit reports and then fix any mistakes before you approach any lender for your car loans.
Shop Around
You may have spent weeks or months to shop around for your vehicle. Do the same for the loan. Most people do not take the hassle to shop around for the best available car loan and end up going to the dealer without doing their homework. Before starting negotiations on the car and price, it is wise to begin the loan application process with different agencies and vendors. Compare your options online at several different websites like infochoice.com.au or carloans.com.au/compare. Once you do your homework on different car loans available and rates, you can come to a better understanding on the best car loans available.
Shortest Loan
It is always best to choose the shortest loan available at the best interest rates. As the cars become more expensive, the loans get longer as well. You can now avail options of financing your car for three, five, seven or nine years possibly. The longer term reduces the repayment amount but it increases your overall cost of the vehicle. Try and limit your car loans within 4 to 5 years as it means even with higher repayment, you will get out of the debt faster.
Beware of Finance Scams
There have been instances where you get to sign all the required paperwork, get the keys to your shiny new car and drive away assuming the deal is done. A few days or weeks later, someone calls you up and lets you know they were unable to get the financing approved at the agreed upon price. Sad isn’t it? You will have to then return the car to the dealership, try and re-negotiate a new loan at a higher interest rate. If you don’t, you could end up losing your initial deposit amount and trade – in and you may even be charged a rental amount for the time you had the vehicle. Chances are that all this would have been mentioned in the fine print in the paperwork you handed in. The only way is to ensure you will not face this issue is by telling the dealer you are not taking the car until all the financing is taken care of.
Monthly Payment
A large majority of people think that if they are able to meet the monthly payments, they got a good deal on the car. This is a huge mistake because buying a car typically involves three different negotiations. The price of the vehicle, the value of your possible trade – in and lastly and most importantly, the financing of the vehicle. They should be keeping all three separate as well. If you are only concerned about how much monthly payment you have to make, you probably will not be concentrating on the remaining two factors. When you see low monthly payments, you might forget the fact that you are paying more than you should for the car and financing and getting far less than you could for your trade – in.
The above mentioned points are very important to keep in mind before availing the best car loan for your company. Or talk to our experts at GoRapid.com.au today!
