Car finance rates are a major concern when buying a new vehicle. They can have a significant impact on how high or low your repayments are and how much you spend in total over the course of the loan. If you aren’t sure what interest rates are or how they work, then you should learn more about this part of the process before you start vehicle shopping.
How Are Car Finance Rates Determined?
Interest rates are hard to estimate because a number of factors are used to determine how much will be added. This is a percentage of the loan that is charged on top of the principal or amount borrowed. Different lenders will offer different car finance rates. Other factors that can raise or lower interest include:
- The age of the car you plan to buy
- How much money you are borrowing
- What type of vehicle is being financed
- Type of loan you are applying for
How Do I Affect the Interest Rates I Can Get?
Along with car finance rates changing for different cars and lenders, they can also vary based on who is borrowing the money. Your situation, repayment terms and financial standing will have an effect on your interest rates. Factors that can alter your rates include:
- Your credit history
- Any outstanding debt in your name
- Choosing to buy through a dealership or private seller
- Being a homeowner
- Renting a home
- Duration of the loan
Am I Getting the Best Car Finance Rates?
How do you know if you are getting the best car finance rates? That’s a tricky question when working alone. If you plan to handle the process by yourself, then it will be up to you to do research and figure out what’s available. It’s important to note that you should not submit applications to multiple lenders. Doing so could make your credit history look busy, which may cause lenders to view you as a higher risk.
The most effective solution is to work with Blink Finance. We offer broker services that will give you access to over 30 Australian lenders. We also work with dealerships and can help you negotiate a better price on your purchase. Our services extend beyond the loan to include insurance, ownership transfers, and registration. If you would like to learn more about car finance rates and getting the best deal, contact us at 1300 827 848 or visit our website to complete the online loan assessment.