When it comes to financing your vehicle, you may be overwhelmed with the number of financing solutions available to you. While our team at iCREDIT does most of the work for you, with great passion and a dedication to keeping you informed every step of the way, it may help you understand what we’re looking at when comparing car finance solutions. The old adage of comparing apples to apples and oranges to oranges comes to mind here. It won’t help you to only look at the monthly repayment or instalment amounts. Yes, this is obviously important and will affect your decision since monthly affordability is key, but there are a number of other slightly more nuanced factors that you will want to compare as well.
What You Should Be Comparing When Looking At Your Vehicle Finance Solutions
Surely, the ideal financing solution would be to adequately meet your fiscal need while keeping the process fairly simple and hassle-free.. So how do you choose when faced with a myriad of options? Compare the facts of each solution according to our checklist below and discover which solution is actually the right fit for you.
- Loan term – the overall period that you will be engaged with your financing solution and be expected to make payments
- Monthly repayment – (we covered this one above) remember that you need to be aware of your monthly commitments!
- Interest rate and APR (Annual Percentage Rate) – this affects the total cost of your loan
- Vehicle depreciation rate versus loan term – longer terms may mean smaller monthly payments, but you do not want to end up with a vehicle that is worth less than you owe
- Early repayment penalties – find out if you will be penalised for settling your debt ahead of the payment schedule
Get Your Financing Sorted
The iCREDIT team would be happy to talk you through the finer details of how to compare car finance options to determine the best value and solution to meet your needs. Give us a call on 1300 350 118 or reach out using our online contact platform. We look forward to hearing from you soon!