Understanding car finance rates
Car finance rate can be confusing. You want a low rate, but does that mean you’re getting the best deal possible? Interest rates are a fee charged by the lender for the use of their money. The cost can add up fast, which is why it’s important to understand what these rates are and how they affect your loan. Understanding car finance rates is very important in the car loan process.
Why are car finance rates different?
It would be convenient if every car loan came with the same finance rate. Of course, the downside would be that you could never get a better deal. A number of things go into determining car finance rates. Each lender sets their rates by considering factors like:
- Your financial status & credit history
- How much money you want to borrow
- The age of the vehicle you plan to buy
- The type of vehicle you plan to buy
- The type of financial product you applied for
Does low rate interest always mean I’m getting a good deal?
Low car finance rates are good, but that shouldn’t be the only thing you look at when deciding who to borrow from. There may be other terms and fees that could cause you to pay more in the long term. Always consider everything before deciding which lender you want to use, that will assist you with understanding car finance rates. Also review:
- Expected duration of the loan
- Required repayment frequency
- Loan product type
- Loan structure
- Any payout penalties
- Any other fees or charges
Add everything up to determine the total cost as well as your recurring payment totals. This will determine whether or not you’re getting the best deal possible.
How do I find the best car finance interest rates?
You can begin researching lenders to see who is offering the best car finance rates. The process will take a lot of time because you must consider all terms to know who is truly better. Or you could work with a finance broker like Zoom Car Loans.
Our expert brokers lift the burden by doing all the hard work when it comes to finding the right loan. We have an established network of 30 lenders across Australia including Greenlight Auto Finance, Pepper Money and Finance 1, as well as industry expertise.
We are ready to help you find the best car finance rates fast!