Be Smart! Avoid These Common Car Loan Mistakes
A car buying experience can be daunting if you are not well versed with the know-hows of loan for cars Australia. Car buying has long term financial implications so it is imperative to remain financially conscious when comparing lucrative car loan options.
The current market has many financial products like personal car loans Australia & chattel mortgage car loan. With high availability of car loan options it is common and normal to get confused and carried away.
Below are some of the common mistakes made by car buyers that should be avoided:
Mistake 1: Buying the car before loan
This is one of the common mistakes made by car buyers; the shoppers buy the car before the loan is approved. It is highly recommended that before you hit the car showroom, you must get your finances in order before you commence negotiations. It is also advised to check your credit history as it majorly decides the interest rate on car loans. Research all available car loan options and compare which is the most suitable for you.
Mistake 2: Misuse of the available car loan calculator
It is recommended to use the car loan calculator in order to have a better idea about car loans and the repayment options. The car loan calculator helps you to explore repayment options by punching in different interest rates, borrowing amount, loan terms and repayment schedule. The more you understand your borrowing capacity, the more likely you will be able to negotiate the best loan deal.
Mistake 3: Carried away by the advertised rates
This is a common trap for car buyers to focus on the advertised rates instead of comparison rates. The advertised rates may not include other fees and charges and it is an artificially low figure designed to lure customers. Comparison rates include fees and give you a more realistic idea about the final price or the car.
Mistake 4: Ignoring the balloon payments
Balloon payments are often used to makes the loan appear smaller. The borrower pays a big amount at the end of the loan while getting small monthly repayments as benefit. Generally, the balloon payment escalates the overall total repayment cost, so you must be aware of it.
Mistake 5: You don’t need professional help
Many people think that car buying is an easy ride that can be done individually without hiring any financial broker, who may charge extra amounts. What if you save the money on car finance company Australia but end up making a blunder mistake with long term implications? It is recommended to consult a car finance company that can guide you throughout the car buying process and will help you get the best car loan option with quickest approvals.