8 Ways To Get The Best And Cheapest Secured Car Loan!
For most of us, cars are the single biggest expense in the household budget after rent or mortgage repayments. By far the most predictable and ongoing of car expenses is your car financing, with the car loan secured against the vehicle itself. So it pays to invest a bit of time and effort into getting the cheapest possible secured car loan that meets your needs! Today we check out 8 expert tips for cutting down that second-biggest household expense.
1.Get Pre-Approved
Any dealership will sell you a car if you can come up with the cash - yet not every financier will lend you the cash you need at the cheapest price. So it makes sense to organise your finance, and THEN your car! Get pre-approval for a secured car loan amount that you think you'll need to purchase your vehicle - then find your dream car.
2.Be Wary of Dealer Finance
Car dealers often take advantage of the 'love' factor apparent when a customer comes in, falls in love with a car, then simply must secure car financing straight away so that nobody else buys it! They offer you the finance to complete the purchase straight away, but it is almost invariably more expensive than financing through your choice of lender.
3.Put Down a Deposit
The less you borrow, the less you'll have to pay interest on. Several months prior to purchase, save the cash you would be spending on secured car loan repayments in a high interest account.
4.Take Your Time with the Terms and Conditions
Before you sign on the dotted line, spend some time with your lender or your secured car loan finance broker, going through the terms and conditions of the secured car loan. What sorts of things will cost you extra money? What happens if you can't make a payment? What happens if your car is written off? Knowing all of these things can help prevent unexpected fees and charges. Make notes on your discussion - these things can be hard to remember later on.
5.Borrow More Than You Need?
Some secured car loans are cheaper when you borrow more money. It may be possible to use an existing asset as additional security, get a larger loan than you need, and use the extra amount for repayments on your loan.
6.Don't Use Credit Cards, Overdrafts or Payday Loans
These are all relatively easy ways to finance your car. However, they all come with substantial traps. All of them have extremely high interest rates, and in some cases (especially credit cards) it can be difficult to anticipate when the interest will start to be charged. The risk is too great - a secured car loan is much safer and ultimately cheaper.
7.Check Your Credit First
The lenders you apply to will certainly check your credit. Make sure you have a look at your own credit history before they do, so that there are no surprises in the loan application process.
8.Take a Shorter Term
Take the shortest secured car loan term your finances can withstand! Longer terms add to your total interest paid substantially.
Secured car loans are an easy and uncomplicated way to finance your next car. Make sure they are also a CHEAP way to finance your next car by following these important guidelines!
1.Get Pre-Approved
Any dealership will sell you a car if you can come up with the cash - yet not every financier will lend you the cash you need at the cheapest price. So it makes sense to organise your finance, and THEN your car! Get pre-approval for a secured car loan amount that you think you'll need to purchase your vehicle - then find your dream car.
2.Be Wary of Dealer Finance
Car dealers often take advantage of the 'love' factor apparent when a customer comes in, falls in love with a car, then simply must secure car financing straight away so that nobody else buys it! They offer you the finance to complete the purchase straight away, but it is almost invariably more expensive than financing through your choice of lender.
3.Put Down a Deposit
The less you borrow, the less you'll have to pay interest on. Several months prior to purchase, save the cash you would be spending on secured car loan repayments in a high interest account.
4.Take Your Time with the Terms and Conditions
Before you sign on the dotted line, spend some time with your lender or your secured car loan finance broker, going through the terms and conditions of the secured car loan. What sorts of things will cost you extra money? What happens if you can't make a payment? What happens if your car is written off? Knowing all of these things can help prevent unexpected fees and charges. Make notes on your discussion - these things can be hard to remember later on.
5.Borrow More Than You Need?
Some secured car loans are cheaper when you borrow more money. It may be possible to use an existing asset as additional security, get a larger loan than you need, and use the extra amount for repayments on your loan.
6.Don't Use Credit Cards, Overdrafts or Payday Loans
These are all relatively easy ways to finance your car. However, they all come with substantial traps. All of them have extremely high interest rates, and in some cases (especially credit cards) it can be difficult to anticipate when the interest will start to be charged. The risk is too great - a secured car loan is much safer and ultimately cheaper.
7.Check Your Credit First
The lenders you apply to will certainly check your credit. Make sure you have a look at your own credit history before they do, so that there are no surprises in the loan application process.
8.Take a Shorter Term
Take the shortest secured car loan term your finances can withstand! Longer terms add to your total interest paid substantially.
Secured car loans are an easy and uncomplicated way to finance your next car. Make sure they are also a CHEAP way to finance your next car by following these important guidelines!
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