- Posted 04 Feb
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Car buying is an exciting process. Who doesn’t want to see themselves behind that Ferrari they’ve always dreamed of?!
Like anything worthwhile though, it can also take up a lot of your time. You need to know what you’re looking for, and exactly what you can afford. Then there’s the type of loan you need and what type of interest rate is fair and what’s a rip-off.
The reality is though; it doesn’t have to be overly stressful. If you have good people working for you, and you’re an educated consumer, you’ll be able to find a loan that is the best for your price point as well as your lifestyle.
We’ve outlined below a few of the options when it comes to finding car loans that we can help you with.
1. The Basics
Let’s start at the beginning: What exactly is a car loan?
A car loan is a personal loan that allows you to make a car purchase without having to come up with the purchase funds upfront. The car acts as security “against” the loan. That means that should you be negligent in your repayments of the loan, the financier can use the car as a way to “recoup” the loan.
Remember the movie “Repo man”? Yes. That’s the scenario if you don’t make your payments. You’ll wake up one morning and your beloved Ferrari will be gone!
Of course, that will never happen to you, because you’re a responsible individual…
Like a home loan, interest is calculated on a daily basis, and you can choose to make extra payments to pay off the loan faster and also reduce extra fees.
Good loan services will offer a variety of products to ease the process of loan repayments, such as a direct debit payment form for your bank account, or credit card payment.
Consult with us today to find out about the options we have available to suit your needs.
2. Lowering your Repayments
One way to get a lower monthly payment is to arrange for what’s called a “balloon” repayment plan. This means you pay a large sum at the end of the payment period, and smaller sums in the months prior.
You can also refinance the balloon at the end of the loan period if you can’t make the payment. A good car loan company will be able to provide flexible arrangements, so make sure you ask the question.
3. Best Options in a Car Loan Provider
When looking for your loan, ask the provider what they can offer to make their services more desirable than the competition. Here are few options to ask about:
- Do they offer flexible car loan repayment terms, say, from 12-84 months?
- What kinds of fixed interest rates and repayment options are available?
- How competitive are their fees?
- Do they offer low repayment options?
- How great is their access to lenders? This will give you more options.
The more you ask, the better position you’ll be in.
Keep these tips in mind, and you’ll have a much better chance of getting the best car loan deal you can get. That Ferrari dream just may become a reality…
If you’re ready to look at your car loan options, get in touch with our team today to discuss your finance options.