Buying a used car can be rather hit or miss – how do you choose a good lender, especially if looking for lenders online? And what about potential hidden costs such as loan fees? When it comes to used car loan deals, the best thing you can do is equip yourself with some knowledge that will help you come out on top, and allow you to purchase both a financially savvy and reliable vehicle.
At Buddii Finance, we’ve connected thousands of Australians with used car loans that let them get behind the wheel sooner. Here’s what we’ve learnt when it comes to getting a great deal on your used car loan over the many years we’ve been in business, and our suggestion for getting the ideal loan for you.
Tip #1: Shop Around
Our first rule is: don’t settle for the first offer you stumble upon! Shop around and compare rates and terms from various lenders, including banks, credit unions, and online lenders. At Buddii Finance, we can connect you with a network of trusted lenders, saving you time and effort. A few percentage points saved on your interest rate, or competitive loan fees, can translate to significant savings over the life of the loan.
Tip #2: Get Pre-Approval For Your Loan
Securing pre-approval for your car loan before stepping foot on a dealership lot, or browsing online, can be a huge advantage. When you know what you’re able to borrow, it allows you to confidently negotiate within your pre-approved budget, avoiding the risk of you spending beyond your budget. This advice can be applied to a range of loans, including boat loans, motorbike financing, and more.
Tip #3: Your Credit Score Counts
Your credit score significantly impacts any loan terms and interest rates in your future. To ensure you’re getting the best used car loan deals, check your credit report for any errors and work to improve your score if needed. You can do this by paying bills on time and reducing credit card balances for example. This potentially unlocks competitive interest rates on your used car loan. Buddii Finance can offer guidance on credit improvement strategies to potentially help you get an even better used car loan deal.
Tip #4: Consider The Entire Loan, And Not Just Its Face Value
When taking out any sort of loan, it’s best to not be tempted by a seemingly low monthly payment or other promise: instead, focus on the total loan cost, including the principal, interest, and any fees. A slightly higher monthly payment with a shorter loan term could save you money in the long run due to lower overall interest. We can help you understand the full picture and choose the loan option that suits your financial goals best.
Tip #5: Don’t Be Afraid to Walk Away
Remember, if a deal feels off, it probably is. Trust your gut, and don’t feel pressured to commit to terms you’re not comfortable with! At Buddii Finance, we pride ourselves on providing objective advice, and aim to support you in every way possible. We will find a deal that suits you, without pushing any further financial stress on you.
Talk To Buddii Today
At Buddii Finance, we’re not just finance brokers: we’re your trusted car loan partners. As a part of our five-star service, we are committed to assisting you with finding competitive rates, flexible loan options, giving you expert guidance, a streamlined application process, and above all else, a commitment to success.
With the above tips and Buddii Finance by your side, you will be well on your way to scoring a used car loan deal that’ll have you cruising confidently towards your next car.
