5 Car Loan Comparison Tips
Lots of people find the world of car loan comparison tips slightly overwhelming, and it can be easy to get confused by exactly what’s on offer with different lenders. At Positive Lending Solutions, we want you to feel confident with finding the right car loan deal for you.
It’s really important that you take some time to understand the basics when comparing car loans so that you can figure out what will make the best car loan deal. It’s also useful to ask for expert help to give you the peace of mind that you’re getting the car loan that’s right for you.
We can help you get the best car loan deal for you.
Car loan comparison tips
It’s often hard to compare one car loan with another as each one may have different pros and cons which you need to weigh up.
We’ve gathered together some of the most useful car loan comparison tips to point out what you should be looking for when comparing the offerings from different lenders:
1. Length of loan
This is really important to consider. Car loans generally have a loan term of anywhere between 36 months and 84 months. The majority of people will pay off a car loan between five and seven years, but this will depend a lot on personal circumstances and financial situations.
If you choose a longer loan term, your monthly repayments will be smaller (as you’ll have more time to pay back the price of the car) but you’ll need to consider the extended time that you’ll be paying interest on the loan and whether this really gives you good value for money.
2. Interest rates
These can make a real difference to the total amount that you pay for your car loan over the course of the loan term. One of the best car loan comparison tips to be found is to really do your sums when it comes to working out how much you’ll be paying in interest for your car loan. Longer loan terms often have lower rates of interest, yet you’ll pay these for more months than a shorter loan with high rates of interest.
You will also need to think about whether you want to get a fixed or a variable interest rate – this will depend on your financial situation and whether you need to know in advance exactly what will leave your account each month or whether you’re able to adapt to the effect of changing interest rates if necessary.
3. Early repayment or exit fees
You may see a car loan deal which you think is too good to be true – and this could well be the case. Often car loans have hidden fees which you only learn about when it’s too late. Always make sure you consider exit fees or early repayment fees when comparing car loans so that you can be certain you’ve got the best car loan deal for you
4. Repayment schedule
If you’re planning to take on a car loan, you’re making a big financial commitment, and it’s important that you’re as organised as possible with your car loan deal. Make sure you’re completely aware of the repayment schedule that you’re required to stick to – this is an agreement with your lender, and if you fail to stick to it, you could be damaging your credit record and getting black marks against your name.
5. Charges for late fees
When you’re looking for car loan comparison tips, you’ll want to imagine yourself always making payments on time and never defaulting on your loan, you need to be realistic. It’s possible that you may miss payments or default on the loan and you’ll need to be aware of the consequences of this – if the case arises. Always check the charges for late fees with any car loan deal.
Ask for expert help
There’s a lot you can do to begin to understand the world of comparing car loans and it’s hugely helpful to have some background knowledge and to do your research.
To get the ultimate peace of mind though, why not ask for expert help? At Positive Lending Solutions, we’ve got decades of experience in the car loan industry and can expertly compare car loans and help negotiate the best car deal for you.
Get expert advice and choose the right car loan for you.