Compare Car Loans

How to Compare Car Loans

Whether you’re looking to purchase a used or new vehicle, it’s important to shop around. This includes comparing makes and models and keeping your mind open at all times. In order to find the best deal and a vehicle that suits you best, do your research. The same concept applies to figuring out your car’s financing. Compare interest rates from different lenders as well as the features and/or extras associated with each loan to find the best option for your budget.

Compare different car loans with the help of InstaAuto. This app uses an app to help customers receive real offers directly to their inbox. This saves not only time, but money too. Using innovative technology accessed right through your smartphone, you can begin the initial research process that is so important when looking for a new vehicle. Choose from lenders that are offering the best deals. This also streamlines the car purchasing process and helps customers like you to find competitive car finance rates and repayment amounts.

How do I decide how much to borrow with my car loan?

Before you start looking for car loans, think about the amount you would like to borrow, how much time you’d like to pay it back and how much you truly can afford. Choose a budget that you can reasonably afford with ease. Also, remember that the shorter your loan term is, the higher your repayments will be each money. However, if you opt for a longer loan term with smaller repayments, you most likely will pay more in total interest.

Fixed-Rate Car Loans Pros and Cons

With a fixed-rate car loan, the interest rate is guaranteed to stay the same throughout the entire loan term. That makes it very easy for you to budget. It also means you’re protected if interest rates rise during your fixed-rate loan period. However, if interest rates fall, you have to keep paying the higher amount.

Loan terms will vary depending on whether you’re buying a new car or a less expensive used car. This is because of the different risk profiles of vehicles of different loans. This can sometimes make it more appealing for lenders to give better deals to those purchasing newer vehicles. Also some manufacture backed finance offers incentivize the sale of new vehicles.


car loans compare

Comparing Car Loan Interest Rates

The lower the interest rate, often the cheaper the deal. However, you should always consider any fees or charges associated with the total cost of the loan. When researching, look for the comparison rate, which includes the loan’s interest rate with the standard fees and charges added in. This just helps you to narrow down car loan choices even further. An APR helps reveal the actual percentage cost inclusive of fees

Comparing Fixed and Variable Interest Rates

A fixed-rate car loan means that you agree to pay a set amount of interest on top of your monthly payment. This means the interest is locked in and your monthly payments will always be the same, which leads to stable finances.

Variable-rate car loans allow the interest rate to change at any time. If there’s a decrease, your monthly repayments go down, saving you money. However, if there’s a rate rise, they go up. This can make budgeting trickier and adds a degree of uncertainty. That is not to say to keep away from such loans – just go in with full information as to the risks that may present.

Comparing Secured and Unsecured Car Loans

Most car loans are considered secured loan, where the amount of money you borrow is guaranteed against the value of the asset, the vehicle you’re purchasing. If you don’t make your payment, the lender can seize the vehicle in order to recover their losses, plus you are still personally liable for any shortfall. Unsecured loans don’t require this same amount of security though. To make up for the risk to the lender, these loans typically, but not always have higher interest rates.

What to Consider When you Compare Car Loans

Here are some things to consider when comparing different types of car loans:

  1. Early exit/extra repayment penalty charges

Fees are often charged if you make extra payments or exit a loan early. This helps make up for the interest payments the lender would be missing. Find out what your fees are before signing on any loan.

  1. Redraw facility

A redraw facility allows you to take money out that you may have paid ahead of time if you need some help with your finances later on during the loan term period.

  1. Personal Property Securities Register Check

For those purchasing used cars, it’s important to consider financial encumbrance, which is the money still owed on a car from a previous owner. This is done with this type of check and is organized into your car loan. Most banks and lenders will do this for you.

  1. Deposit

A low-deposit or no-deposit car loan is available for those with good credits.

How to Compare Car Loans Fast

InstaAuto allows you to put car loans from a range of lenders in one place to compare them side by side. You can look at available rates and compare features and costs. This helps you to narrow your options easily. Once you’ve taken the time to look at the available rates, you can find the right car loan for you and visit a dealership to purchase the vehicle of your dreams.

Finding the best rate helps you to save money for other expenses in your life. InstaAuto offers a unique platform allowing car shoppers to select a number of vehicles, find a dealership that sells it and to apply for financing even before visiting them. This pre-qualified process speeds up the car-buying process too. Simply take the chosen offer to the dealership and complete the process there.

About InstaAuto: InstaAuto is available for download nationwide in Australia. They’re a pioneer in streamlining the power of technology for the car purchasing process. They empower customers with countless finance offers with trusted car dealerships in their area. Their proprietary finance technology allows customers like you to quickly and easily comparing different financing options in your area. Download our app today to compare car finance offers.

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