4 Ways to Lower Your Auto Loan Costs | The mail

4 Ways to Lower Your Car Loan Costs

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There are several routes you can take to make your new car dreams come true. And while it’s good to have options, finding and applying for a loan that suits your budget can be a slow and tedious process.

In fact, when it comes to transportation costs, car loan repayments are said to be one of the biggest burdens on the household budget. And with such competition in the market, knowing which loan to choose can seem like half the battle.

Even so, you can benefit from the large number of lenders in the market vying for your business. How? Well, the competitive nature of the industry can help you get a car loan on terms that suit your financial situation, you just need to know what to look for and where to get help.

You do not know where to start ? Here are some ways to lower your car loan costs and lessen the impact of your vehicle on your bank balance.

Compare and contrast your options

Don’t make the mistake of thinking that all car loans are created equal, they’re not. In fact, when it comes to researching loans, the more options you compare, the better.

We know what you’re thinking, won’t it take a long time? If you do it alone, yes. The good news is that you don’t have to drive solo. If you’ve evaluated your car financing options and decided to get a car loan, Driva can help you find the loan that’s right for you.

4 Ways to Lower Your Car Loan Costs

Consider your credit score

According to Driva, one of the main factors that many lenders will consider when pricing your loan is your credit score. In the eyes of many lenders, the higher your credit score, the lower the interest rate they will be able to offer.

If you improve your credit rating, it will be easier for you to get approved for future loans and, most importantly, increase your chances of getting a lower interest rate. It’s a win-win situation, so it’s wise to keep your credit behavior on the straight and narrow.

Save Thousands By Refinancing Your Car Loan

In Australia, 90% of all vehicle sales are arranged through finance, however, many of us forget that we always have the option of refinancing. But are there any benefits to doing so?

The short answer is yes. When you refinance your car loan, not only can you take advantage of recent interest rate cuts to reduce your monthly repayments, but you can also take advantage of your improved credit score to get a better rate on your loan.

4 Ways to Lower Your Car Loan Costs

As a bonus, you can even extend the term of your existing loan to lower your monthly repayment – I can’t argue with that.

According to Moneysmart, finding the best car loan can save you thousands in interest and fees, which is why it’s important to find the best ways to finance a car.

It will help you understand the differences between secured and unsecured auto loans, the structure of lease-purchase agreements and chattel mortgages, and more.

Whichever way you steer it, buying a car is a big financial decision, and deciding how you’re going to finance it isn’t an easy decision. The more you do your homework, the more likely you are to make the right choice for you.

If you’ve weighed your car financing options and decided to get a car loan, Driva can help you find your perfect loan in minutes.

To get started, visit www.drive.com.au


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