Finding a good fixed rate car loan
Fixed rate car loans are not all made the same. With so many lenders for car loans out there, getting car finance that fits your needs perfectly can be difficult. To make your fixed car finance search a breeze, we’ve compiled essential tips and tricks to help you find the best fixed rate car loan for you:
Pay attention to the comparison rates
When reviewing car loans, always look at the comparison rates as these tell you the true cost of the loan. Comparison rates include the loan’s interest rate and certain additional fees. The higher the interest rate, the higher the cost of the car loan.
By paying attention to the comparison rate, you can avoid dodgy car loans that boast extremely low to zero interest rates only but have outrageously expensive hidden fees to compensate. Checking out the comparison rates while shopping around can also save you a lot of time as it shows you which lenders and what type of car loan offers the best deals.
Know about fees and penalties
There's more to a loan than its interest rates and some fees aren’t always included in their comparison rates. To really understand the cost of a car loan, you need to learn about all the related fees and penalties.
During your car finance search, ask about associated fees and penalties such as early payment fees, late payment fees, and the like. Usually, fixed rate car loans are less flexible compared to variable rate car loans. You may see heftier fees when you take out this type of car loan. It’s better to know all the fees upfront to save yourself any nasty surprises in the future.
Check out the loan features
When looking for a car loan, always keep an eye out for useful loan features. Loan features can help you save money on your car loan or make repayments much easier to manage. A fixed rate car loan that offers a balloon payment feature, for example, can help lower your monthly repayments which can come in handy for those who juggle a lot of bills and other debt.
Typically, fixed rate car loans don’t have as many loan features as variable rate ones. However, it’s still a good idea to take your time and check out all your options. You could also speak with lending specialists or lender representatives about possible loan features.
Learn about the lender's process
Because car loans are a long-term commitment, it’s important to find a lender whose processes are easy to follow and convenient. Some lenders have a more streamlined system than others.
For instance, traditional lenders may require borrowers to submit and sign documents at a physical branch which could take a lot of time out of your day. This could cause a lot of inconvenience, especially for those with busy schedules.
Online lenders, on the other hand, offer great convenience. With loans.com.au, everything can be done online, from application to settlement, as well as mobile apps that let you handle your repayments all in the comfort of your own home.
Every lender has its own system for approving applications, processing settlements, and handling repayments. Finding a lender with the best system is key to a pleasant overall car loan experience.
Speak with a representative
Taking out a car loan isn’t a one-and-done transaction. You’ll have a lot of back-and-forth with the lender, be it for documents that need signing or any concerns you may have during the loan application and settlement process. This means a lender with good customer service is vital.
When speaking with a lender representative or lending specialist, note how quickly they reply to questions and concerns. See how well they explain complicated processes and if they’re easy to talk to. The last thing you want in a lender is poor customer service where it takes them days or even weeks to reply to the simplest concerns.
How to get a good deal on a fixed rate car loan
Once you find the perfect fixed rate car loan, there are ways to help you get approved or get an even better deal on rates and terms such as:
- Improve your credit score – Borrowers with high credit scores have a great chance of getting low rates and better terms. This is because lenders see those with high credit ratings as lower risk of missing payments.
- Show strong credit history – A strong credit history showing consistent and timely bill and debt repayments is an advantage when applying for a loan. This shows lenders that a certain borrower has good financial habits.
- Know all your options – Shopping around for a loan and comparing different car finance deals will give you an idea of what’s on the market and which ones offer the best rates.
Ready to get a fixed rate car loan?
Get in touch with loans.com.au! Our friendly lending specialists are more than happy to discuss your fixed rate car loan options. We’re here to help you find a car finance solution that fits your needs perfectly. Call 13 10 90 or schedule a call at your earliest convenience.
If you’re ready to apply for a loan, check out our fixed rate car loans. You can also apply online today and get approval quickly!
Find out in under 2 minutes if you qualify for one of our low rate car loans.
About the article
As Australia's leading online lender, loans.com.au has been helping people into their dream homes and cars for more than 10 years. Our content is written and reviewed by experienced financial experts. The information we provide is general in nature and does not take into account your personal objectives or needs. If you'd like to chat to one of our lending specialists about a home or car loan, contact us on Live Chat or by calling 13 10 90.
