Buying a new or preowned vehicle can be a daunting task, especially if you do not have the full amount to pay upfront. Car finance is often synonymous with being a hassle and that can lead to people simply choosing the first option presented to get the process over and done with. It can leave potential buyers stressed out, borrowing under duress, and failing to read and understand their loan terms completely. Most people do diligently compare car finance, but that is as far as they go in terms of finding the most cost-effective financing solution for their specific requirements.
In this blog post, we break down the questions you need to ask when considering and comparing your car finance options before making a purchase. It is essential that you are completely comfortable with the options presented to you and understand how the loan will affect your finances for the specified period.
What Are My Repayments?
Surprising as it is, some only realise what their repayments are when it goes off their account at the end of the month. It can be confusing trying to sift through the loan amount, interest rates, fees and monthly repayments. Thus, you need to ask what your repayments will be each month.
What Are The Associated Costs?
Similarly, people are often shocked when they get several bank notifications at the end of the month because they did not consider all the other associated costs. This includes fees attached to your repayment amount, and you need to ask your broker specifically what that will entail every month.
What Is My Car Loan Actually For?
While comparing car finance, some may realise lenders have different repayment terms. Therefore, it is essential that you are specific about what vehicle you intend to purchase. Give your broker as much information as possible to ensure you are receiving an appropriate offer.
What Is My Loan Term?
Another important factor that can sometimes be overlooked is your loan term. People often sign an offer based on how good the loan appears but forget to clarify the loan term. This can lead to some ending up with extremely long loan terms, which will affect their future financial situation.
Our clients often express to us how confusing the car financing process has previously been for them. Many are unsure of what questions to ask, what terms to accept or what conditions to demand. Due to this, some feel they have no real choice when making this financially significant decision other than to compare car finance. At iCREDIT, we strive to provide a transparent, honest and simplified process when acquiring car finance through us. Speak to us today to see what we can offer you.
