Finding the right car loan can be tricky. Sometimes just knowing the right questions to ask can make all the difference. We've come up with 10 key questions for you to ask to help you compare loans and find the right one for you.
The 10 questions to help you compare car loans
A fixed interest rate means the repayments stay the same for the term of your loan. A variable rate means the repayments will change with a rate change.
To choose what suits you best, consider your budget, current interest rates and whether you are able to handle increased repayments with a variable loan.
Some finance contracts with low interest rates stipulate in the fine print that the loan term has to be a specific time period, usually two to three years, which will make your monthly repayments higher.
It may suit you to have lower repayments over five, six or seven years.
Always ask the interest rate being charged and make sure it’s competitive. Also ask what the comparison rate is to understand the full total cost of the loan.
It’s easy to focus on the repayment amounts, which might be based on what you can afford. You need to make sure the loan is both affordable and a good deal.
Credit Protection is a loan insurance policy designed to protect your loan in the case of an unforeseen event such as death, accident, sickness or involuntary unemployment. GAP cover is an additional product which is designed to protect you if your vehicle is declared a total loss and your comprehensive motor insurance policy payout doesn't cover the remaining loan balance on your finance.