subject: Useful Tips and Car Loan Advice for New Buyers [print this page] Useful Tips and Car Loan Advice for New Buyers
Planning to buy your first car can be an exciting yet time consuming experience. You will need to look into the various finance options that are available and carry out research on the various loans that are on offer by different loan providers. Chatting with friends or family members who have purchased cars recently may be a good way to begin the whole process but its recommended that you use a car loan adviser.
Choosing a loan
You will find that every other bank or finance company is ready to offer you a car loan. This is well and good if you are in a position to make monthly repayments promptly. All too often, one is taken up by the flexible loan terms like zero percent interest for the first three years, that the actual repayment issue is side lined. One way to work around this challenge is to use a credible online car loan calculator and determine how much of cash you need to put aside each month to repay your car loan.
O% Car Financing
This feature of a car loan may seem very attractive but one is asked to weigh this option carefully. Experts note that zero percent interest rates are offered on short term loans. For instance, a two year loan is very likely to have zero percent interest but your monthly repayments will be relatively high. The same loan, if taken over a period of five years with an average interest rate, will require you to make lower monthly payments. Hence, zero percent car financing is not necessarily the best deal and what really matters is the amount that you are comfortable paying back each month.
Read the fine print
For example, zero percent car financing will often only apply to buyers who have a large deposit and on selected vehicles only. This could mean that even if you have an excellent credit history, the zero percent financing might not be available for the car of your choice
