Don’t choose your car loan on rate alone

The start of a new year doesn’t just bring clothing sales, it also heralds the start of some excellent ‘run out’ car sales.

If you have been in the market for a new car, these ‘run out’ sales offer the perfect opportunity for you to snap up a new vehicle at an incredibly competitive price. When buying a new car, many of us will need to take out a loan in order to finance the purchase. While a lot of people will just get a loan through their chosen car dealership, this isn’t the only way to fund a vehicle purchase.

You may not even realise it, but your local Mortgage Choice broker can help you obtain car finance. In the same way your mortgage broker can help you secure a sharp home loan interstate, they can also help you snag a very competitive car loan.

Of course, when selecting the right car loan for your needs, there are some important factors to consider, including:

Loan fees: There are many kinds of car loan fees that you may incur; these include establishment fees, loan service fees, late payment fees, and (potentially) prepayment fees. Your local mortgage broker can provide a full list of features and fees associated with car loans and advise you on the most suitable product for your financial needs.

Loan repayments: When taking out a car loan, many of us make the mistake of focusing purely on the low interest rate. Instead of just looking at your interest rate, look at your repayments and make sure you are comfortable with the cost. Depending on which lender and loan you choose, you may also be able select how frequently you’d like to make your repayments – e.g. weekly, fortnightly or monthly.

Loan term: The length of a car loan is important to consider, as it will determine what your regular repayments are and how much interest you’ll pay over the life of the loan. Generally speaking, car loans will last anywhere from 12 months to 7 years. The shorter your loan term, the less interest you may pay, but the higher your regular repayments are likely to be. When choosing your car loan term, pick something that suits your financial circumstances.

Pre-approval: Finally, before you start shopping for your dream set of wheels, it's important to have an idea of how much you can spend. Your broker will help you source car loan pre-approval so that you can head into the shopping process with peace of mind. Once you’ve chosen your preferred loan and sought loan approval, it’s time to start looking for your ideal motorised beast.

Your local broker will help you get the right car, at the right price – with no haggling and no hassles.

Our car buying service will help you find the vehicle you want, searching through dealerships right across Australia. As our brokers source hundreds of cars each month, you can take advantage of our volume buying power to find your new car at a competitive price. They will do all the paperwork and can organise a competitively priced car loan via our wide choice of over 25 lenders. Your local broker can even help you to trade-in your old vehicle. All you have to do is sit back and relax, as the car you want will simply arrive at your door with a tank full of fuel.