Sometimes you don’t have the funds available up front to purchase a new car. Personal Finance can be a great option to get you into those new wheels, without having to pay a lump sum first.
Generally, a secured car loan can be used to buy a new or used car from dealerships or private sellers, but a personal loan will give you more flexibility if you’re looking for an older or unique model.
Before you start imagining yourself in your new ride, however, it’s important to follow some simple steps to ensure you’re getting the right car, at the right price, with the right finance.
Step 1: Set your budget.
Work out what you can afford by using our handy car loan calculator to calculate the repayments for the car you’re hoping to purchase. Make sure you’re comfortable with the repayment amount and the length of time you will have the loan.
Step 2: Choose your loan type.
Secured car loan: Generally, when purchasing a new or near new car, a secured car loan will help you get a lower interest rate. That’s because the car you’re buying can be used as security if you can no longer make repayments.
Personal Loan: If the car you want is an older model, a personal loan may be the best option to finance the vehicle. And the good news is, you may be able to get a lower interest rate by securing the loan against the car or your home, similar to the way a secured car loan works.
Step 3: Start Shopping.
Now the fun part – it’s time to find your new car! Take your time and assess the pros and cons of purchasing through a dealership vs private to make sure you’re buying the vehicle that’s right for you.