It is time for you to purchase a car, which means you need to seek out auto finance in Tweed Heads. Most people cannot buy a car without borrowing money to do so. However, there are a few extremely common mistakes that many people make that can prevent you from getting the best financing deal possible, which will result in you paying far more than you need to.
Accepting Extended Terms
The first rule of getting a loan is that you want to pay it off as fast as possible. The shorter the repayment term, the less money you will end up throwing away on interest and the sooner you will have the burden of repayment removed from your back.
However, it is not always easy to do this, since shorter repayment terms mean larger monthly instalments, which can be unaffordable depending on your budget. If you can afford larger instalments, it is worth the sacrifice in the short term since you will save a lot in interest and have paid off the loan much more quickly.
Not Putting Down A Deposit
Where possible, you should put down as big a deposit as you can muster, which will further serve to reduce your terms, as well as the size of the monthly instalments. A big deposit will also likely secure you a better interest rate, which will further reduce the overall total cost of owning the car.
You can either save up to put down a deposit or, like many people, you can trade in your old car to the dealership in lieu of a deposit. However, since dealerships do not always pay well for second hand cars, you might be better off selling it privately and then using the cash gained from its sale to put down a deposit.
Not Shopping About
Often car dealerships will have lenders that they prefer to deal with, which may not always give you the best financing deals that you can find. Many car buyers simply take the first loan offered to them, even if it is somewhat unfavourable. We at iCREDIT specialise in applying for financing from different lenders and then comparing their offers to determine which one culminates in the best value for you.