Quick Guide To Car Loans
Application for a Car Loan
For most people, obtaining financing to buy a new car is the most often chosen route, as having the available liquidity is not always readily at hand. So opting to apply for a car loan is the perfect way for a problem free, quick and easy way to get the car that you desire. There are three ways to make an application for a car loan: you can apply in store, over the phone, or apply directly online.
Interest Rates, Fixed Rates, and Comparison Rates
If you want to save money and pay a lower interest over the term of the loan, keep a sharp look out for a low interest rate car loan when applying for a new or used car loan. The rates can vary, so choose a car loan where the amount of interest you are paying on the amount borrowed is as low as possible.
If you want to know that your monthly repayments won’t fluctuate throughout the term then a fixed rate is the one for you. You will know exactly how much you will be paying each month, which makes it much easier to budget. Most car loans offered these are on a fixed interest rate.
On the other hand, the other rate you will see listed along with the fixed rate is the comparison rate. Comparison rates are useful as the true cost of the loan is shown. The comparison rate takes in factors such as fees and other charges that may be incorporated in the loan and then this is then converted into an overall percentage.
Secured vs. Unsecured Car Loans
One of the best options when considering a car loan to buy your car is a secured loan. The car that you purchase is seen by the bank as a collateral asset until you have finished paying off the car loan in full. If for some reason you are unable to meet the repayments necessary, then the bank will take back the car to regain any losses it may have incurred.
The lower fixed rate of interest and the lower monthly payments against that of personal loans is often why secured loans are cheaper. An unsecured car loan is seen by the banks as that of having a higher risk factor, also the interest rate will be a little bit higher if you are taking out an unsecured personal loan. Depending on which option you go for, either secured car loan or unsecured personal loan, you will have to provide evidence that you are in a financial position to be able to meet the repayments of the loan.
Get all the facts
Do all the research possible and arm yourself with as many car loan tips as you can. Understand your financing options and don’t be afraid to negotiate with other lenders if they’re willing to offer you a better deal. Then you’ll be in a better position to make a sound judgment on the car loan that you take out.
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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