Buying a new car should be fun and many people enjoy choosing the make, colour and features their new car will have, but it’s not usually so enjoyable when it comes to organising finance for your dream car. Whilst many consumers will take time to research a purchase as significant as a new car, less spend time researching the finance available to them in order to make their dream car a reality.
Why Compare Finance Options?
Taking time to evaluate all your options places you in a better position when it comes to actually securing the purchase of your new car. Consumers, who walk into a car dealership with no finance in place but know exactly the type of car they want, will leave with the car and the dealership’s finance package. Now, the dealership plan might be a great deal, but then again, if you had shopped around for finance, you may have been able to borrow the same amount at a lower rate and with lower repayments.
Once you’ve negotiated the best loan deal for your purchase you’re free to reach a deal on the purchase itself. Being finance savvy puts you in a good place when buying your new car because it frees you up to negotiate on the price of the car or on the extras you want to be included. If you haven’t pre-empted the finance you’re stuck trying to talk the dealership down on the cost of the loan with no scope for challenging the price or standard features.
Interest rates and fees for car loans can vary considerably, so by taking some time to familiarise yourself with what’s out there in the market you will be in a better position to determine how competitive the dealership finance package really is.
As with most types of borrowing, car loans are available through comparison websites and these comparison sites are often a hub of useful information. However, they don’t cover every provider and if you rely on these sites alone you will often miss deals that are offered directly. For example, the professional car loan company, Sydney provides are companies whose core business is car finance and they increasingly have to compete with multi-disciplinary lenders so can prove to be attractive sources of lending.
Car loans can also be obtained from traditional financial institutions such as banks and borrowers can make an application in the same way they can for any personal loan. In your quest to find the best finance package and ultimately secure the car you really want, it’s also worth looking at smaller financial organizations. They may be trying to attract new customers or increase consumer awareness of the product ranges they offer. Check with your local credit union. Credit unions are member owned, operate as a not for profit organisation and endeavour to offer members competitive rates on a range of financial products.
When considering what finance company is best suited to your needs it can be tempting to choose the one that offers the lowest repayments, but this is not necessarily the best deal. Remember to take the loan period, interest rates, fees and any early repayment penalties into consideration when making your choice.