Personal Loans and Car Loans take a fair while to organise if you want a great deal. It’s more than simply ringing your local bank – They are there to make plenty from you – I can only imagine how long it will be before they are making 10′s of billions of dollars per year profit.A guide to Personal Loans and Car Loans - The world of car loans can be a little tricky to navigate, especially if you’re not too sure about the terminology. Here are some key terms that will give you all the information you need to explore the world of Personal Loans and car loans.
When applying for a car loan, unless you have a ready supply of cash, you’ll probably need to apply for some form of loan or finance to buy your New Car. An Aussie Loans Car Loan is a quick, convenient and hassle free way to get the car you need, now. The application process is straightforward. You can apply online, over the phone on 1300 633 334.
Interest rates, Variable Rates and fixed rates – If you’re thinking about applying for a new or used car loan, interest rates will definitely be of importance. These numbers dictate the amount of interest you’ll pay on the money you’re borrowing. Keep your eyes peeled for a low rate car loan at Aussie – from 7.95% to approved borrowers. You’ll pay less interest over the term of your loan, which will save you money.
Comparison rates are now no longer required by law. ASIC changed the rules recently however they were handy because they show consumers the true cost of a loan and you could basically compare apples for apples with a particular loan. They take into account standard fees and charges relating to a loan and are converted into a percentage. You’ll will see two rates listed in the details of a loan – the interest rate and the comparison rate. Using the comparison rate, and taking note of the loan’s features, are the best ways to decide if a loan is right for you.
The majority of car loans on the market are fixed rate loans. This means that the interest rate attached to your loan is fixed for its duration. Fixed rate loans are handy for budgeting because you always know how much your monthly repayments are. They are the best way to go.
Secured vs. Unsecured loans – A secured car loan is your best option if you’re buying a car. The car is viewed by the bank as security against the loan until the loan is paid off in full. If you don’t make your repayments though, the bank takes your car to recoup their costs. Secured loans are cheaper than personal loans because they have a lower fixed rate of interest and lower monthly repayments.
Banks view unsecured personal loans as a little riskier – if you don’t pay or can’t pay, it becomes a major problem. While you can use an unsecured personal loan to buy a car, the interest rate will be definately higher. Also, for either secured car loan or unsecured personal loan you’ll need to provide documentation to prove that you are financially able to repay the loan. Fees and charges – Hidden fees and charges can really throw a spanner in the works. The banks are great for this so take care. Make sure you know all about the fees and charges your new car loan will attract before you sign on the dotted line. Make a note on the repayments – They are a big deciding factor when you’re looking for a car loan. You need to make sure you can commit to repaying the loan long term without causing yourself undue financial grief and remember, if you can afford to make extra repayments, you can get your loan paid off sooner. Keep this in mind when you’re budgeting.
Do your research and get as much information you need to make a decision is available online, check out comparison rates and even read up about applicable fees and charges. Grab yourself with as much information as possible to make an informed and educated decision. Car loans, just like any other lending product, require some forethought and understanding before you start the application process. Make sure you do your best to learn everything you can and really commit to understanding your obligations. Once you’ve got this part out of the way, the search for your dream car can really start.
Call one of the team on 1300 633 334 and we will explain anything that maybe you do not follow.