For many of us, cars play a crucial role in our day-to-day lives. They get us from point A to point B, whether it’s for work, play or just running errands. The problem is, however, they don’t come cheap. In fact, buying a car is probably the second biggest expense most of us will ever have after buying a house.
And this is where car finance can become very helpful—nearly 90% of Australians use loans to finance their vehicles.
However, with so many car loan choices available, it can be overwhelming to figure out what’s important and how they actually work. So, what factors should you pay attention to when considering a car loan, and how do they function?
If you can’t afford to buy a car upfront, a car loan can help you out by lending you the money you need with interest. But remember, the length of time you have to repay the loan (also known as the term) will affect how much interest you pay. Longer terms mean lower monthly payments, but you’ll end up paying more overall.
When you take out a car loan, you should put down a deposit upfront to secure the car and the rest of the loan. The bigger the deposit, the more choices you have, and you can lower your monthly payments and interest rate too. It’s best to aim for around a 20% deposit, but you can also use your current vehicle as part of the deposit.
When picking a repayment plan for your car loan, remember that a longer term equals lower monthly payments, but you’ll end up paying more interest in the long run. For a better rate, go for a shorter term. Crunch the numbers before applying with a car loan calculator to see what you can afford without going overboard.
BrokerCo makes refinancing your car loan a breeze, whether you want to apply for a car loan, switch from another lender or enhance your current loan. Also, with our innovative digital platform, you can expect fast approvals, shorter wait times and no more tedious paperwork.
Plus, we offer highly competitive rates that could save you a bundle on your car loan. Chat with our team now to discover your ideal options for car finance in The Sunshine Coast!
Looking for a home loan or car finance in The Sunshine Coast? Let the BrokerCo team guide you every step of the way.
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The information contained on this web site is of a general nature only and is not to be taken in any way as specific advice for individual circumstances.
COMPARISON RATE WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rates are based on a loan amount of $150,000 over a loan term of 25 years.
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