3 key things to look for in a car loan

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If you are looking for a car loan to finance a new set of wheels, now is the time to familiarize yourself with the top three things to look for.

  • Interest rate
  • Costs
  • Characteristics

But what exactly should you watch out for when shopping?

Read on as we put a magnifying glass on the different parts of auto loans to see where you might find a killer option …

1. Interest rate

As you probably know, auto loans come with interest rates and that should be your place to start.

According to the Mozo database, the average new car loan rate is 6.41%, while the average rate for used cars is higher 6.98%.

It’s important to choose a low-interest loan to make sure you don’t incur too much interest on top of paying off what you’ve borrowed.

Also, don’t forget to take into account the comparison rate because this number also includes fees and charges in addition to the overall rate.

Here are some low interest auto loan options:

Loans.com.au New car loan
  • Low 4.67% (comparison rate 5.22% *)
  • Borrow up to $ 100,000
  • Free additional refunds

If you are looking for a car loan with a low fixed rate, the new car loan from online lender Loans.com.au is worth considering. This loan has a competitive fixed rate of 4.67% (comparison rate of 5.22% *) and clients can borrow between $ 5,000 and $ 100,000. Loan terms vary from 3 to 5 years and borrowers can make weekly, bi-weekly or monthly repayments. Additionally, additional repayments are allowed on this loan, but there is a hefty prepayment penalty of $ 700 if you repay your loan in full in advance. Also be tired of the upfront application fee of $ 400.

New car loan Plenti
  • Competitive fixed rates from 4.89% (comparison rate of 5.44% *)
  • Borrow up to $ 100,000
  • Free additional refunds and no prepayment penalty

Do you want to be rewarded for your good credit with a low rate auto loan? Discover the new Plenti car loan. With fixed rates starting at a competitive rate of 4.89% (5.44% compare rate *), customers with great credit could really get their money’s worth. Borrowers can take out a loan between $ 10,000 and $ 100,000 over a period of 3 to 7 years. While there is only a monthly repayment option, Plenti allows customers to make additional free repayments without fear of a prepayment penalty. However, there are fees to watch out for – the upfront application fee of $ 399 and the late fee of $ 30 if you miss a regular refund.

2. Fees

The second crucial thing to consider when choosing a car loan is that the lender charges. minimal fees.

Some of these fees include:

  • Initial application fees
  • Ongoing monthly fees
  • Late payment fees
  • Exit fees
  • Prepayment charges

While most loans come with at least one or two fees, it’s important to find one that doesn’t have too much.

Also be aware that while some loans may have a low interest rate, they may come with higher fees, so calculate the numbers to see if it’s actually worth it.

Check out these loans with minimal fees:

OurMoneyMarket car loan
  • No monthly fees
  • No exit or early repayment fees
  • Low fixed rate of 5.35% (comparison rate of 5.65% *)

With the OurMoneyMarket car loan, not only will you benefit from a competitive rate, but you will have minimal fees to worry about. This loan has a low fixed rate of 5.35% (5.65% comparison rate *) and clients can borrow between $ 2,000 and $ 75,000. But that’s not all. This loan also says goodbye to pesky monthly service fees and goodbye to exit fees and prepayment penalties. While there is an application fee of $ 250 and a late fee of $ 35 to consider, customers have the option of making additional free refunds whenever they want. This means you could pay off your loan sooner!

SocietyOne car loan
  • No monthly service fees
  • No exit or early repayment fees
  • No setup fees for customers with excellent credit

If you have a good credit score and are looking for a new or used car loan with less fees, SocietyOne’s car loan might be the one for you. Not only is this loan free of monthly service, exit, or prepayment charges, but for customers with excellent credit, there are also no set-up fees. Simply put, the minimum a client will pay in setup fees is $ 0, but keep in mind that the maximum is $ 995. Another thing based on your credit score for this loan is the interest rate. From a fixed rate of 6.39% (comparison rate of 6.39% *), the rates can go up to 17.49% (comparison rate of 21.00% *).

3. Features

All good things come in threes, don’t they? Yes!

So with that in mind, the last thing to look out for when looking for a deadly car loan is that it is flexible characteristics.

These usually boil down to things like redemption schedule options, free additional refunds, and redemption facilities.

Ultimately, you want a loan that will allow you to pay it back in a way that works for you, and even save you a little bit of money along the way.

Take a look at these loans with flexible repayment features:

Wisr secured car loan
  • Free additional refunds
  • Weekly, bi-monthly or monthly repayments
  • Fixed rates from 4.74% (comparison rate 5.01% *)

Are you looking for flexible options and features in your car loan? With the Wisr Secure Car Loan, that’s exactly what you get. Fixed rates for this loan from a competitive rate of 4.74% (comparison rate 5.01% *) is not the only thing for her to do. Borrowers have many options: loan terms (3 to 7 years), loan amounts ($ 5,000 to $ 50,000), and repayment schedules (weekly, bi-monthly or monthly). Additionally, customers can make additional repayments if they wish without incurring a prepayment penalty, if they repay their balance earlier than expected. Keep in mind however that there is no easy withdrawal on this loan, so borrowers cannot access their additional funds after paying. Also, keep in mind that you will need to budget for a hefty application fee of $ 605 upfront.

CUA secured auto loan (fixed)
  • Free additional refunds
  • Ease of redrawing
  • Weekly, bi-monthly or monthly repayment schedule

Take a look at the AUC Secured Auto Loan if you are looking for flexibility. This loan has a fixed interest rate of 6.79% (comparison rate 7.16% *) and customers can choose to repay it on a weekly, bi-monthly or monthly basis. In addition, borrowers can also make additional free repayments whenever they want and enjoy a repurchase facility if they need it. The good news is that the AUC does not charge customers who prepay their loan in full, nor does it charge monthly service fees, late payments, or exit fees. It is important to remember, however, that you will have to pay an application fee of $ 265 when you first take out the loan.

RELATED ARTICLE: How are auto credit rates looking right now?

Want to evaluate other auto loan options? Visit our car loan platform to find out more.

Mozo provides general product information. We do not consider your personal goals, your financial situation or your needs and we do not recommend any particular product to you. You should make your own decision after reading the PDS or offering literature, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we do not cover all products on the market. If you decide to request a product through our website, you will be dealing directly with the supplier of that product and not with Mozo.


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