Car loans are an excellent way of financing your purchase. You can get some great deals on new and used cars with the help of a loan, and you’ll never have to worry about paying for your vehicle in cash. So why should you get a car loan? We’ve compiled 6 reasons that will hopefully answer that question!
You’ll get a great vehicle at a fair price
Car loans make it possible for people with low cash reserves to get the vehicle they want. If you don’t have enough money saved up to pay in full, consider getting your next car loan from us today! You’ll make regular repayments over a period of a few years and at the end of the loan period you’ll have complete ownership over the car.
You can get a better deal on the car itself
Car dealerships often give discounts to customers who are financing their purchase. This is because the dealership knows that they’ll make more money in interest on your loan than if you paid in full. This might make it easier to negotiate and get a great price on the car, saving you money overall!
Improve your credit score
When you finance your vehicle, the lender will report to credit bureaus that you’re making monthly payments on time. This is great for your credit score and can help you secure loans in the future!
If you make your regular monthly repayments in full and on time every month, you’ll be able to improve your credit score, which will make it easier to get other loans in the future (and at the most competitive interest rates!)
You’ll build good budgeting habits
For many people, their first car is a budget breaker because they didn’t save up to pay for it. When you finance your vehicle and make monthly payments on time every month, you’re building the financial discipline that will help you in future endeavours. You don’t want to be stuck with bad credit! It’s important to figure out exactly how much you want to spend on a car before proceeding with searching for vehicles.
You’ll better understand the process of buying a car
Car loans are an excellent way for people to learn about how interest rates work, and what it means when you’re quoted monthly repayments. Car shopping can be complicated, but there are plenty of resources out there to make the process more straightforward!
Competitive interest rates
There are so many lenders out there, which makes it easier than ever to get a great competitive interest rate! You can check out a few different options and choose the loan that best suits you. It’s important to fully do your research and make sure you’re not rushing into anything. You don’t want to end up paying a higher interest rate than necessary, which can cost you thousands over the life of your loan!
We recommend looking at the comparison rates of loans rather than the APR (Annual Percentage Rate). This is because the comparison rate includes nearly all of the fees that lenders will charge you, making it quite an accurate representation of how much you’ll end up paying. The APR doesn’t include any of these fees or charges so can be quite misleading.