How to find the best deal on a car loan
If you’re new to the world of car finance, we’ve compiled a quick list of what you need to keep an eye out for when searching for the best car loan.
Finding the ideal car loan can be a challenge. With so many lenders and car loan deals on the market, it can get overwhelming, especially for first-time car buyers. To find the best loan for a car quickly, you need to know what to look for.
If you’re new to the world of car finance, we’ve compiled a quick list of what you need to keep an eye out for when searching for the best car loan.
Low, competitive rates and fees
The higher your car loan interest rate, the more interest you need to pay. This is why finding a car loan with competitive rates is a must to save money. It’s best to shop around to see what the current market standard is. From there, you can pick and choose which loan suits your financial goals best.
Using an online car loan calculator can help you understand how the interest rate can affect your car loan costs. You can adjust the interest rate and other details to help you view where you can get the most savings.
In addition to interest rates, you should also pay attention to the car loan comparison rate. The comparison rate shows the actual cost of the loan, including the actual interest rate as well as any costs and fees. If a car loan has a low interest rate, but a high comparison rate, it likely means it includes a lot of additional fees.
Good loan features and payment terms
To make the most out of your car loan, it can be helpful to look for useful features like balloon payments, free extra payments, and the like. Car loan features could help you save money, lower repayments, and/or shorten the loan term so you can own your car sooner.
If you want to lower your repayment amount, consider getting a car loan with a car loan with a balloon payment feature. A balloon payment is a one-off payment paid at the end of your loan term. The amount in the balloon payment will be deducted from the total loan amount that your loan repayments are calculated on. This can help you maximise your cash flow and stay on top of your repayments.
When searching for car loans, ask your potential lender what type of car loan features they have to offer. Remember, the ideal car loan isn’t one with all the fancy features, it’s car finance with the features you need.
Excellent customer experience
Lenders have different processes and varied approaches to customer service. For a smooth and hassle-free car loan journey, find a lender that offers accessibility and convenience. Getting a car loan is easy if you have the right lender.
Before taking out a loan, get in touch with a representative and ask about their application and repayment processes. Ask if the loan is easy to access and manage and what kind of customer support they offer. A car loan can last between three to seven years so having a lender with reliable customer service is a must.
Tips on getting a car loan
Here are some tips to keep in mind when searching for the perfect car loan:
-
Avoid car loans that offer extremely low or zero interest. These car loans usually come with expensive ongoing fees and unfavourable terms.
-
Be cautious of car loans that advertise ‘guaranteed approval’. Lenders and car dealerships that offer guaranteed approval for their car loans may not be trustworthy and indicate suspect business practices.
-
Put down a deposit or downpayment when possible. When you put down a deposit, you’re cutting down the cost of your loan because you’re borrowing less. The less you borrow, the less interest you pay over the life of the loan.
-
Know the different types of car loans. Car loans come in all sorts of variations from fixed rate and variable rate car loans to new and used car finance. There are also green car loans, electric car loans, and car loan refinancing.
Find the ideal car loan at loans.com.au
Ready to get a car loan? Find the best car finance solution with loans.com.au! We have a range of car loan options for you to choose from. Speak with our friendly lending specialists to learn more about our car loans. Or you can apply online today and hear back from us as soon as possible!
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.
