Comparing Car Loans
There are many factors to look at when comparing car loans. Interest rate, loan terms, fees and charges and penalty fees all need to be taken into consideration when comparing a car loan that’s suitable to your needs and objectives.
People are conditioned through the media to always look for the cheapest interest rate offered by lenders and although interest rate is a determining factor, there are other factors that customers need to look at when comparing car loans. The easiest way of comparing car loans is to look at the repayment and the amount payable over the term as this will give you an indication of the total amount paid to the lender should you repay the loan over the term.
Looking at the total repayment will show any monthly account keeping fees, loan establishment fees, stamp duty, PPSR or origination fees that may be associated with your loan. This should give you an indication on the true cost of your car loan. Take into consideration a car loan with an interest rate of 5.5% with a standard $10 monthly account keeping fee could cost more over the term than a car loan at 10% with no account keeping fees.
Other factors to look at would be are there any early payout fees associated with the loan and what type of loan contract you are entering into. Early payout fees are usually payable to the lender to recover loan set up costs if you complete the loan prior to the contracted loan term. Entering into a loan contract that doesn’t fit your circumstances can affect how much you will be paying back to the lender over the term.
Having a pro active finance broker source the most appropriate loan product suitable to your needs and objectives and can potentially save you unnecessary costs over the loan term. A Finance Broker should understand finance practices and lending criteria so as to provide a loan suitable to your affordability needs and loan objectives.
The cheapest rate may not be the most appropriate result for your own individual requirements.
iCREDIT can help you find, compare and choose a car loan suitable to your needs and affordability criteria. Contact us on 1300 350 118 or email@example.com to discuss your car loan comparison needs.