3 Top Tips for Understanding Your Car Loan Options
When they are looking at car finance rates, Perth drivers may find the details a little overwhelming. There are so many deals, rates and providers to consider before you make a commitment, it can be daunting. A wrong decision could cost you a lot of money and result in having a financial millstone around your neck. Here are three top tips to consider before signing on the dotted line.
1. Research is Key
Before considering any loan make sure that you know which car you want. Make sure that it fulfills all of your requirements and that it is within your budget. A good rule of thumb is to ensure that your household budget devotes less than 25% towards family vehicles. Allow for some wiggle room to account for any unforeseen circumstance such as garage bills. Ensure that your budget includes obvious costs such as insurance and not so obvious costs such as servicing. Knowing your budget well will help you to negotiate car financing that is affordable over a term that suits your needs.
2. Get the Financing in Place First
Many people believe that they need to find the car that they would like to buy and then seek the financing to purchase it. This is an extremely bad idea from a negotiating standpoint. Seasoned car buyers will know that having a pre approved financing package in place when negotiating is very helpful. As a customer, you have far more bargaining power if you have a car loan ready to go. When looking at used car finance, Perth drivers will find that this is still relevant. Having finance in place shows that you’re a serious buyer and not a tyre kicker, you may be able to negotiate harder on the price and any extra features that you would like.
3. Ask Plenty of Questions
Don’t be afraid to ask dealers plenty of questions when you’re investigating your financing options. If you ask the right questions, you will gain access to better deals. Doing your homework on your options will save you money so don’t rush anything. Most car loans are structured much like a personal loan, which means that they are secured against the vehicle. Smaller financial institutions may offer you better deals or if you’re looking your bank may give you a preferential offer as an existing customer. For many of us, the requisite financing will be provided by the car dealership. There are some excellent deals available, but some dealerships only offer financing on new cars or specific models. The interest rate is important, but also pay close attention to the loan period and any upfront fees such as a deposit. The deal must be considered in its entirety in order to gain an accurate assessment of what the total cost will be.
If they would like to know more about car finance rates, Perth residents should contact us here at Subaru Subaru. We can offer competitive financing packages that are tailored to your unique circumstances. Visit our online loan calculator at our website or call us for a quote. If you have any further questions, our sales team will be happy to answer them for you.