New Car Loans

Total Costs, Repayments And More

Before you even consider purchasing a new car, you need to analyse how much you can afford to pay each month. This will help you roughly estimate the amount you can pay for a new car. However, note that there is no guarantee you will actually be able to get new car loans for the full amount but it is still a smarter approach than just crossing your fingers, hoping your repayments won’t be astronomical.

So, the size of your repayments will depend on two factors: the amount you borrow and the length of the loan. Most people are tempted to go with the longest possible duration on new car loans, so they can keep their repayments as low as possible. However, this is not always the best choice because the longer the loan is, the more it will cost you in interest charges.

You can also reduce your repayments by lowering the amount you intend to borrow. There are plenty of cars available and you will certainly find something to suit your budget without throwing a few thousand out the window by extending the duration of your loan.

There is, however, a third alternative to lowering repayments on new car loans and that is the balloon payment. The latter is similar to a deposit except that you will pay it at the end of the loan. The size of the balloon payment will depend greatly on what you expect your financial situation to be at the end of the loan.

However, don’t make the mistake of accepting a balloon payment just to keep repayments down now without considering the consequences. You will still have to save up the money to make the payment, so you might be better off forgoing this option if you haven’t had any success saving money until now.

Your Credit History Has An Impact

You will find that new car loans for people with bad credit tend to be a lot more expensive because of the higher risk involved for the lender. So, if you are considering purchasing a car and have a poor credit rating, you might want to wait a while to clean up your act or expect to pay a lot more. The same holds true for anyone looking for new car loans after bankruptcy.

On the other hand, new car loans, excellent credit ratings, and a large deposit make for a much better deal. Essentially, it puts you in a position of power because all lenders want a low-risk client so you will find that you can negotiate terms on new car loans and save a lot of money in the process.

Featured Personal Loans

Personal Loan	Details	Min Interest Rate	Min Comparison Rate	Min Loan Amount	Min Loan Terms	Apply Fee
ME Bank Personal Loan	A low rate personal loan from ME Bank with no application fee for a limited time.	13.59%	13.81%	$5000	1 year	$0
Aussie Personal Loan	A smart way to consolidate your bills to save time and money so you can pay for your holiday, a wedding or renovate the house.	13.90%	14.84%	$3000	1 year	$199
Sugar Money Personal Loan	Fixed rate personal loan with flexible options to get you funds when you need it.	13.99%	15.00%	$3000	2 years	$250
bankmecu Personal Loan	A convenient and fast way to purchase a car or debt consolidation with affordable rates and fees.	13.49%	14.55%	$1000	1 year	$150

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