Tips and tricks on car loans

If you are ready to buy a car and are organizing car finance for the first time is ready to do some valuable research before you start stomping pedals. A good preparation gets you much closer to your dream car. Here are some tips and advices you should keep your mind on.

Make sure you run through your credit report!

 

Before starting to embark on your car purchasing journey, try requesting your credit report from the Credit Bureau. This service is free at least once a year. This will give you a peek into your credit worthiness and will provide you information of any shortcomings. Aside from this you should have a report of your income for the last three months, as well as any paper that shows your current address (ID card, your electricity bill etc.) These are used to gather up credit points. The more credit points you have, the easier it will be to get a car loan approval. With this information you will be significantly prepared for harsh selling tactics in a way that you can always reject the offer if it is not in your best interest.

Check banks for quotes!

  

When you have had your credit report verified, you should create an idea of a car you are willing to buy and its price range. When you have come to an idea, go out and visit your nearby banks to research quotes. Each bank has its own deposit requirements, interest rates, and grace and repayment periods. In this case, when you have your documentation ready, which you have gathered in the previous step, the bank may pre-approve your loan. Without the documentation, it will take up from one to three weeks for a bank to check your credit report. When bank gives you pre-approval for your car loan, you will immediately know how much is your monthly payment and interest rate range, no matter whether or not you chose exactly that bank for your car loan.

Feel free to negotiate for a better interest rate!

Some researches proved that eighty percent of the buyers are paying their car through the car dealers. If you see yourself trapped by the finance department of a car dealership, don’t be afraid to negotiate for a better interest rate. YOU ARE THE BUYER and unofficial rule that is:”The CUSTOMER is always right!” applies here too. Information you gathered in these steps will surely give you the best heads up in purchasing a car.

Things you should be cautious about!

Make sure you use the free credit report. Any service that charges credit report often brings hidden fees and prices.

ALWAYS make sure to go around and compare interest rates, prices as well as best car loan offers. Don’t be lazy and check more than one bank to get a quote and to check interest rates on their loans. That will give you a complete idea if you are getting a good deal or not.

When buying a car at the car dealer, try to avoid any add-ons by the seller. Products such as vehicle service contracts, guaranteed car protection insurance, life and disability insurance, etc. should always be avoided at the car dealer. The prices are too high and most of them are provided so that the car loan cost can be increased as well as their profit. If you really are in need of any of those products, make sure you buy them outside of the dealership because they are a lot cheaper.

These purchases are done every day by the people in Australia. Most of them are stuck in a lot of paperwork or get to miss their best offers in buying a car exactly because the documentation cannot be completed fast enough and therefore loans cannot be issued in time. These helpful car loans and financing tips will surely get you ahead of that and prepare you for the car you can buy and ease the nights spent not sleeping because of the fear of the unexpected surprises at the end of the month.