In this day and age, mobility plays a big role in one’s daily life. Whether it’s the need to go to one’s place of work or the need to do groceries, one cannot ignore the need for a convenient way of transport. The need becomes more important especially for those who are starting families of their own. The most practical answer to the need for mobility would be the purchase of a car. The next question that comes to mind now, however, is affordability. Fortunately, one can avail of car loans which makes car purchases within one’s reach. Some finance mortgage brokers like blutin.com.au don’t just help clients get mortgages but they can also help you get business loans or even a loan for getting yourself a new car.
CHECK THE BUDGET
With so many options available in the market these days, one can now look for a car that can easily fit within one’s budget in terms of monthly payments. It would be wise to keep in mind that loans have to be religiously paid back every month. Make sure that the monthly instalments are within the budget set as part of the monthly expenses.
LOOK FOR A LENDER
Loans can be provided by either of two options: loans provided by the car dealer or loans made through the bank.
Car dealerships will usually offer loans that are made payable through monthly instalments in three to five years. However, interest rates and terms may not be as friendly as compared to loans offered by banking institutions. Use a percentage change calculation tool to verify anything you are told.
Another option is to apply for a car loan through a banking institution as many of these offer car loans as part of their services to clients who are of good credit standing.
COMPARE RATES TO GET THE BEST DEAL
When getting a car loan, one has to make sure to do the math to get the best deal possible. Always keep in mind that car loans involve other fees such as interest rates which will add to the total cost of the car.
Always consider the loan term and interest rate, making sure that the loan term is the same when you compare interest rates. The shorter the loan term means lower interest rates and bigger savings in the long run.
Other fees to be considered are application fees which need to be paid when applying for a loan and monthly service fees. Be aware of missed or late payment fees as well. Always read the fine print when applying for car loans as many of these fees have to be considered as part of the actual expense incurred upon purchase of the car.
Some lenders will offer the option of “balloon payments”, otherwise known as residual payments. While these might look more attractive due to the low monthly payments, a lump sum has to be paid at the end of the term. These balloon payments usually involve higher interest rates as well. It would be best to make this the last option.
As confusing as the math may seem, some websites offer comparisons of rates and payments from different lenders. One may use these websites, although the use of these websites comes with a catch as many of these are used for promoting certain lenders. It would be best to be aware of this when using these websites for comparison.
MISCELLANEOUS EXPENSES
Besides the actual price of the car, one should consider the car insurance, registration fees and stamp duties as part of the initial expense. These expenses can be applied to the car loan as well. Keep in mind though that if these expenses are applied as part of the car loan, these too will incur interest.
APPLY FOR THE LOAN
After having compared and considered all terms and expenses of the loan, one needs to start applying for the loan. This can be done in person, by phone or even online with the latter being the most convenient and fastest option.
An application form which asks for basic information, as well as questions concerning one’s credit standing and financial situation, has to be answered and filled up. After all the paperwork is done, one has to wait for approval of the loan which usually takes around two business days. Once approved, one can now go to the dealer and purchase the car of his dreams.
