Buying a new car is exciting – but choosing how to finance it deserves just as much attention. Car loans come in many forms, and understanding the options can make a big difference to what you pay overall.
Loan terms usually range from one to seven years, and interest rates can vary significantly between lenders. The rate you’re offered will also depend on whether the loan is secured (backed by the car) or unsecured. Secured loans generally have lower rates because the vehicle acts as collateral.
Beyond interest rates, car loans often include application fees and monthly charges that affect the total cost. It’s also important to choose a repayment structure that suits your budget. A balloon loan means lower monthly repayments but a significant lump-sum payment at the end – and higher overall costs. Paying the loan off evenly means higher instalments but a cheaper outcome long term.
Many buyers turn to dealer finance for convenience, but brokers can often access better-value loans from a broader range of lenders and tailor repayments to your situation.
Contact me if you’d like help comparing car loan options and finding finance that fits your needs.
