15 Oct 3 Tips To Help You Get A Better Interest Rate On A Car Loan
If you’re on the hunt for a new or used car, you’re probably looking to get the best car deal possible to maximise your budget and make your dollars go further. The same applies to car finance. Finding the best car finance deal could mean saving hundreds or even thousands of dollars in interest charges and fees. Luckily, getting a better interest rate on a car loan isn’t impossible. It starts with 3 simple steps: review your credit report, check your options, and choose the right car finance.
1. Review your credit report
Your credit report holds all of your financial history and plays an important part in determining whether or not lenders will lend to you, and what interest rate you could be charged. Checking your credit report regularly – at least once a year and certainly before applying for any large credit amounts – ensures your information is always accurate, up to date, and relevant to your situation.
Aside from catching any errors – and filing a dispute to have these rectified or removed – reviewing your credit report provides you (and lenders) with an accurate assessment of your current financial situation. That could help you make informed decisions about any future borrowing, or motivate you to take the steps necessary to improve your credit score. Like making changes to how you spend or consolidating your debt to get your finances under control.
Requesting a credit report is easy and it’s free.
2. Check all your options
When it comes to buying a car, there are a few options to choose from. Knowing which one is right for you is key to saving money and getting a better interest rate.
Dealership finance may seem the most convenient option, and it can be tempting to accept the car finance solution offered by the dealer to simplify the car buying process. But this type of car finance is often more expensive, as it usually comes with higher interest rates and charges. What’s more, dealership car finance means you’re limited to buying from a car dealer only and not a private seller, which means your options for buying a car are reduced.
Credit cards may be another option for buying a car, but this type of credit is usually charged at much higher interest rates than that of a personal loan, and the lack of repayment terms and ease of use often lead to overspending. Buying a car with NZ personal loans is a far safer option than a credit card. With personal loans, you’ll know up front how much you’re paying in total for your car, what your interest rate is, and how long it will take you to repay your loan. So you can plan your budget better.
Car finance and car loans are still the most cost effective way to finance a new or used car, and working with a car finance expert like Max Loans means you’ll have access to the most competitive car loans on the market. Our team of Personal Lending Advisers work closely with you to find the right car finance for your situation. What’s more, our Insurance Advisers at Max Insurances can help find the right car insurance to meet your budget and provide the right level of cover.
3. Choose the right car finance
There are a few other ways to help reduce the interest rate you’re charged, so it’s a good idea to check that the car finance you’re considering offers these options:
- Paying a deposit up front could help you secure a lower interest rate.
- Choosing a secured personal loan – whereby your new car is pledged as security for the loan – often results in lenders charging a lower interest rate or lending a higher amount.
Experts in car finance
Interest rates, fees and charges vary widely from lender to lender. So too do their terms and loan features. That’s why it pays to work with a car finance expert like Max Loans. We can help match you up with the right car finance lender, so you know you’re getting the most competitive car finance available to you. Get in touch today to talk about your car finance needs.
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