Get the Best Car Loan for Your Needs

Get the Best Car Loan for Your Needs

Finding the best car loan for you is not always an easy task. This market is flooded with hundreds of good deals and offers which can make things very confusing.

When you are choosing the best car loan it is a good idea to break down your search into key areas. This will help you to compare loans more easily and find out which products really can offer you a good deal.

1. How much can you afford to repay each month?

This is one of the key considerations you need to make when taking out any kind of loan. It can be difficult managing all the various credit products and bills we have these days. You need to examine your finances carefully and see exactly how much you can comfortably afford to repay on your car:

– Look at your current incomings and outgoings.

– Make sure you include all of your bills, expenses and other credit product repayments.

– Check that you can set aside enough money each month to pay off a car loan.

– If your budget is very tight then it will be more important than ever to make sure you are getting a good deal in your loan interest rate.

2. Do you need to pay anything upfront?

Some of the best car loan options require you to make an upfront deposit payment. For example hire purchase deals require you to make a payment of around 10% of the cars total sale price. It is worth making payments upfront as this can mean you have lower monthly repayments afterwards.

However if you cannot afford to save up for a deposit then you may not be able to apply for certain loan products such as those sourced direct from the dealer. This should not be a problem though as there will be other good loan options available from other lenders that do not require deposits.

3. What are the overall repayments?

As well as looking at the monthly repayments you need to look at exactly how much you will need to repay on the loan overall. This is why interest rates are so important, as they tell you how much the lender will be charging you for borrowing money.

– The lower the interest rate the better in most cases. This will mean lower monthly repayments and also lower overall costs.

– However you do need to consider the length of the loan as well. If you take out a low interest loan over 5 years then it may actually work out to be more expensive than a high interest loan over 2 years. This is because although you are paying less interest each month, you are paying it for much longer.

Make sure you check exactly how much the loan will cost you in total so that you can compare different rates and lengths to find the best car loan deal overall.… Read More

Five Tips to Get the Best Out of Your Car Loan

Five Tips to Get the Best Out of Your Car Loan

One of the biggest car purchase decisions anyone can make is whether to finance their car – it doesn’t matter whether it’s a brand new car, or a second hand purchase, financing a car can be a rewarding and exciting experience, and can give you access to cars that you might not otherwise have had access to. It’s important to understand the terms and conditions of your loan, but before you get even that far, here’s some tips and advice that will keep you right when buying that special new purchase. So here are some top tips for loan advice.

– Don’t just go into the nearest dealership and ask about finance – with the wealth of information and advice available online, it’s important to ensure that you’ve gotten a complete grasp of what your options actually are before committing. Look at the various online sites that offer advice on car loans, and read up before signing your contract – you may find a better deal online. However, once you know your budget the motor dealer can be the best place to find the best option and one that can be fulfilled in the most convenient timeframe.

– Be sure that when you’re signing the deal that there aren’t better ones out there – while you shouldn’t apply for deal after deal because it can damage your credit history, but similarly, avoiding applying because you’re unsure whether you’re able to even get credit can be just as damaging to you. If you are concerned about getting credit for anything, be sure to ask your bank manager or check your credit file online before applying.

– Have an idea of what you need to borrow – if you know how much the car that you want costs, roughly, it will be much easier to secure a loan – it will also help you to explain what car you’d like to buy, if asked, on the form – and will give you an idea if your finance needs are manageable.

– Do your budget carefully – it’s easy to think that you can afford a car loan on an inaccurate budget, so while checking that you can afford your car, see where else you can streamline your lifestyle – you may find, in doing your budget that you have more, or less disposable income, but you can always make the appropriate plans either way.

– If in doubt, contact someone – many of the loan places that you can find allow you to contact them and talk through any questions or problems you may have. They can also advise you on the best ways to apply and what information you’ll need. Again, once you have a basic idea of your monthly budget, a good motor dealer can help you gain the answers to those last couple of questions.

With a little research and the right questions, you can probably get the best finance deal available to you, without worrying that you can … Read More