Are you considering buying a New Car? If yes, then there might be chances that you opt for a Car Loan. Before you take the next step, go through these crucial tips to get the best car loan for your needs so that when the time comes to buy a car, you will be ready to roll.
Understand Car Loan Before You Go
An individual’s Credit Score plays a very important role when it comes to qualifying for a lower car loan interest rate. That is why you should know everything about car finance before you apply for that. APW Finance provides you with the facility to monitor your credit for free with tips for improving your Credit Score. Do consider requesting a free credit report from banks, which you can do once every 12 months and in that way you can make changes in the report if there are any mistakes.
Intend For Short Term Car Loan
There are several advantages of shorter-term plans such as lower interest rates. So, if your financial situation allows you to go for a short term loan then you should consider it. Besides, you’ll be on the path to paying off your loan sooner.
Pay it Down
Down payments on any loan play a big role in deciding your interest rate and term of the loan. Whatever type your dream car may be, the higher your down payment on it, the lower your interest rate would be. It is recommended that at a minimum, you should try to put down at least 20%. For every $1000, your monthly payment will reduce approximately by $18.
Time it Right
Timing is one of the most important things that play a vital role for you, especially while purchasing a car. If it is possible, wait until the last months of the year to buy like October, November or December. Additionally, try to go for the middle or end of the month and at the start of the week as these are the times when salesperson are trying to meet their targets, and therefore are more likely to negotiate on a lower price.
Cover the Taxes & Fees of Car Loan
The taxes and fees are amidst the things that are often neglected until the end of the car-buying process. Try to estimate for these at the start of the process, and give them off in cash. Following such small details can save you hundreds of dollars over the term of your loan.
Save by Refinance
It could be a better option for you to refinance your current car loan, and it can save you some cash. Your credit score may have increased, or maybe you want to reduce your monthly repayments. Irrespective of your situation, refinancing can be considered the most agile way to a more favourable interest rate. You can try our interest rate calculator to see if refinancing might be appropriate for you.
Well, we hope this introductory guide stating the basics before you venture into buying a new car is helpful. For any kind of queries and complete guidance, you can contact APW Finance.
Experienced Director with a demonstrated history of working in the accounting industry. Skilled in Tax Preparation, Self Managed Superannuation Funds (SMSF), Accounting, Income Tax, and Tax. Strong professional with a Master of Applied Finance focused in Taxation from University of Western Sydney.