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How to reduce your car loan repayments

With car prices rising rapidly over the past few years, many are looking at ways to reduce their repayments.

Here are some items to look out for when trying to reduce your car loan repayments:

 

Put down a deposit

These days, there are many different loans on offer, both through lenders and dealers. Dealers can offer attractive terms such as no-deposit loans, however, if you’re looking for a lower interest rate and a more affordable loan, this type of product might not be the best.

By putting a deposit down, you might be able to find a loan with lower interest.

 

Look at the features

While it might be helpful to have a loan with many different features – like the ability to repay your loan faster or even a redraw facility – these additions might come at a higher overall cost.

Ultimately, these features might cost you more upfront but save you money in the long run, especially if you can pay out the loan faster.

 

Hybrid and electric cars

Hybrid and electric cars are popular choices at the moment. It is possible to get loans that offer competitive deals to entice people into this type of vehicle.

The best thing to do is to speak to us  – we will compare your options before you begin your search for a vehicle. If you’re interested in purchasing an electric car, it’s worth seeing what type of finance solutions are available to you.

 

Improve your credit

Irrespective of the type of loan you want to take out, a lender will always look at your credit rating when they are deciding what interest rate they can offer on a loan product. Typically, lenders will assess those with lower credit as higher risk and expect them to pay a higher interest rate.

By looking to improve your credit rating through paying bills on time (or early) and cleaning up old debts or errors on your credit report, you stand a better chance of obtaining finance and a better interest rate.

 

If you would like to find out what you obtaining a car loan,  or have any finance and/or property questions, the best place to start is to contact us for advice.   We are only an email or phone call away, on 02 8004 2222 or  book an appointment.

Although we are located in Crows Nest, we service clients from St Leonards, Artarmon, Wollstonecraft, Cammeray, Northbridge, Naremburn, Neutral Bay, Greenwich, North Sydney, Waverton to Willoughby and all areas of Greater Sydney.

PS  This article is prepared based on general information. It does not take into account individual financial or property objectives or needs and is not financial product or investment advice.