How To Choose The Right Auto Loan For You | The daily leader of the North

0
INNOVATION AND CONVENIENCE: Choosing the right car loan is easier with Driva. Photo: Shutterstock

This is branded content for Drive

Once you’ve found your perfect car, the next step is to decide how you’re going to finance it. If you don’t have enough money to buy a car, you probably need to think about the car loan options available to you. but it can seem quite daunting!

Armed with the information below, you’ll be informed and ready to start shopping for a car loan that’s right for you.

Decide how much you can afford to borrow

The first step is to determine the amount you are going to borrow. If you’re able to put down a down payment on your car, even if it’s only 10% of the car’s purchase price, it can reduce your total loan amount and lead to lower monthly repayments.

It’s good to have a clear idea of ​​your budget and how much you can afford to spend, in total as well as regular repayments, before you start shopping for the car. You can use an online car loan calculator to get an idea of ​​what your loan repayments might look like. Remember that in addition to your loan repayments, you will also have to pay several ongoing costs such as fuel, registration and insurance.

Compare interest rates and terms from different lenders

It is very important that you don’t just choose the first lender you see! Take the time to compare different car loan options (which you can easily do with Driva!) to make sure you get the best rate possible. It is also important to consider the loan terms and lender fees associated with each loan option.

Understand your loan options

There are a number of different loans, so it’s a good idea to familiarize yourself before you start shopping. If you are looking for a car to be used primarily for personal use, you will be looking to get a secured or unsecured loan. A secured loan uses your car as collateral and normally has a lower interest rate, while an unsecured loan requires no collateral and will come with a higher interest rate.

If you are looking for a car to use for business purposes, there are a number of commercial loan options, including chattel mortgages, hire purchase agreements and ongoing leases.

Key Features of Loan to Watch

When comparing loan options, you should keep an eye out for several features:

  • What is the interest rate?
  • What lender fees are involved? (These may include early redemption fees, monthly fees or early exit fees)
  • What is the repayment frequency? (Refunds are normally made weekly, fortnightly or monthly)
  • How long will approval take?
  • Can you repay your loan early without penalty?
  • What is the term of the loan?

Ask Drive for help!

Our final piece of advice is to ask for help! Driveva is an Australian fintech start-up and your one stop shop for all your car finance needs. You’ll be able to compare personalized loan options from over 30 different lenders and get pre-approved rates in less than 60 seconds. Best of all, all fees and charges are displayed up front, so the amount you see is exactly what you’ll pay each month (with no hidden surprises!). To start your financial journey and find the best loan option for your needs, go to driva.com.au.

This is branded content for Drive

Share.

About Author

Comments are closed.