Sifting Through Loans: Some Car Loan Tips When Planning for a New Car

For most people, when it comes to matters of financing, they simply want it done rather than have to spend the time weighing up options. The great danger in such an approach is rushing into a choice or decision could see you paying a price that is supercharged to get standard mid-range car.

Similar to the way you go around shopping for a good price for a brand new car, shopping for a great car loan could end up saving you hundreds of dollars. Carrying out detailed financial comparisons may take some time, but the advantages are many.

Develop a Good Credit Rating

You stand to get better financing terms if you have a good credit history when you approach a lender. Therefore,  it’s best to first clear all outstanding bills and put in place a solid savings pattern that proves your ability to service a car loan before you hit the market. The goal is to raise your credit rating.

Confirm the Car Finance Rates

As you weigh up your financing options—and certainly different options will suit you differently— ensure you have a clear estimate of the total car cost. This makes your planning easier as you will not be met by unexpected items after finally signing up.

For example, are you going to be charged any fees in case you decide to pay up the car loan earlier? How much does the total interest amount come to during the full loan period? The bottom line is that you should carefully look at entire finance package.

Loans Payment Duration

Simply because you can pay off your house mortgage for 20 years doesn’t mean you also have to pay for your new car for the next two decades! Using a Sunshine Coast mortgage broker can help you take maximum advantage of the lower interest rates on offer, along with flexible payment periods.

Experts recommend visiting the car dealerships towards the end of the month as you will have better negotiation power against a finance and sales team that wants to meet monthly targets. Of course, you can learn more helpful tips from car finance professionals in Sunshine Coast, like those from Ethica Private Wealth Specialists.

 

Sources:

Car financing: Your complete guide<, Drive

Ten of the best car loan tips, Rate City