Shop for low cost car loans onlineLooking for low cost car loans can seem like a daunting task. After all, how will you have the time and the patience to go trawling the high street to ask about all the deals available? That’s why shopping online for car finance deals can often help take the stress out of the process. By logging on to a specialist motoring website, you could even find your dream car and the means of purchasing it in one go!
Looking for low cost car loans can seem like a daunting task. After all, how will you have the time and the patience to go trawling the high street to ask about all the deals available? That’s why shopping online for car finance deals can often help take the stress out of the process. By logging on to a specialist motoring website, you could even find your dream car and the means of purchasing it in one go!
First of all, consider realistically what your budget should be. It’s a good idea to establish this and stick to it before you get carried away and fall in love with your dream car. Will you be able to keep up the monthly repayments for the whole term of the loan? Does your monthly budget include a contingency fund? Once you have answered these questions, you can confidently shop around for your car in your price range.
Finding a car that suits your needs is the fun part. Fuel consumption, reliability, and how the cars retain their value are all factors you might consider. Again, looking online can take some of the legwork out of this task.
When you are looking at details of the loan itself, there are a number of issues to consider.
• Secured or unsecured?
You might be offered a loan that is secured against your house or other valuable asset. This is not an option to be considered likely, as your home or other important asset might be at risk if you don’t keep up the repayments. The interest rates that are offered for unsecured low cost car loans may be slightly higher, but consider the terms and conditions that accompany the loan to assess what is best for you.
The term of a loan is how long you have to repay it. Generally, a longer term means lower monthly repayments, so this could be a consideration if you are finding things a struggle in the short term. However, it is worth bearing in mind that the longer the term, the more you will pay in interest over all. A shorter term may mean more expensive monthly repayments, but you will have cleared the debt more quickly and paid less interest in the end.
• Interest rates
Interest rates are the charge the bank or other lenders makes for allowing you the credit. You might have haggled over the price with the person selling the car. Interest rates could be another opportunity to practise your haggling skills – if you have compared prices online you can let a lender know that there are better deals out there, and ask whether they are prepared to match them.
• Other terms and conditions?
Apart from the actual price, consider the other terms and conditions. In particular, can you make early repayments without incurring a penalty, or take a repayment holiday if you need to? If you find that most of the low cost car loans available are priced similarly, something like this could be the deciding factor.
Posted by Edwin Miles on