When you are getting ready to buy a new or used car, a car financing plan is on the cards for you too! Now everybody has the finances to buy a car outright so it only makes sense to take out a loan from a reputable financial institutions so that they can afford some sort of transport for themselves and their family. As a car financing expert in Australia, we’d love to share with you what you can do to make sure that you get a great deal for your car financing plan.
Work on a larger down payment
When you’re trying to work out a monthly repayment schedule, looking at your down payments as a deposit before you start your financing plan, or even the balloon payments when you’re at the tail end of the loan could really help minimise the monthly amounts due. That means that you might have to dip into your savings a little, but for a better interest rate and a more manageable monthly fee, it might be worth it!
Apply for loans with different Lenders
When you’re shopping for loans, besides looking at how the different financial tools work, you should also scout out different rates at other lenders. Having a wider range of quotations to look at will give you a nice spectrum for comparison so you can decide on something that will not give you a better rate, but possibly work more to your liking too.
Check out different loan tenures
When you think about your loan, it’s important to know just how long you are committed to making payments to your lender. In addition, different tenures have different interest rates assigned because of the level of risk associated with long term arrangements. Getting a quote for car loans of different tenures will give you an idea of how much you have to pay over time and help you to arrange for the plan that best suits your needs.
Work out the final costs involved
Last but not least, your car financing loan is not just about the deposit or balloon payment or monthly payments, but about the overall cost to you! Paying a larger down payment means less of the car’s cost to pay off over time, same for arranging for a longer tenure so that you have smaller monthly payments! But at the same time, these options also mean paying more interest over time. If you are unwilling to making these extra payments over the actual cost of your car, then you will have to adjust the parameters of your loan accordingly.
Comparing your options might seem like a bit of work, but with a professional financial consultant like The Smarter Finance Company, finding the perfect plan to work to your advantage can be so easy! Allow us to help walk you through how each plan works and help you secure an amazing car finance deal.