Five Mistakes to Avoid When Looking for Quick Car Loans

So, you’ve found your next new car and need to look for quick car loans, to prevent you missing a great deal. However, before you rush into applying for fast car loans online, there are several things you need to consider and five important mistakes to avoid.

Automatically Choosing Dealership Finance:

When you have found a great deal on your next car, it is tempting to simply sign up for the finance offered at the dealership. This can be a very costly mistake. Many dealerships will advertise great interest rates but this rate is not often available to those with a less than perfect credit history. Additionally, since you are already sat in the dealership, you may feel obliged to agree to the terms even if you don’t feel totally confident.

Failing to Shop Around:

One of the most common mistakes people make about quick car loans is not properly shopping around. Although you may be in a great hurry to get your car paperwork signed, it is always worth taking a little time to check you are getting the best possible deal. Simply assuming that the deal in front of you is the best can be a costly mistake in the long term. Fortunately, there are brokers offering quick car loans online which can allow you to compare deals and ensure that you choose the one best suited to you.

Only Checking the Interest Rate:

Another common mistake when looking for quick car loans is to only check the interest rate on your loan deal. While the interest rate gives you a good idea of what interest will be applied to your account, it is not the only reflection of the cheapest deal. Some loan packages include arrangement fees, sign up fees or early repayment fees, which can significantly increase the total cost of your loan. It is important that you check the terms and conditions to ensure that you are happy with any fees or charges which may be applied.

Choosing a Loan Deal Based on the Monthly Repayment:

While it is important to ensure that you can manage the monthly repayment in your budget, it is important to not agree to a loan deal simply because of this. Many loan providers will allow you to reduce the monthly payment on your finance deal but this is usually at the cost of extending the loan period. This means that you will pay a great deal more in interest charges over the total term of the loan. When comparing fast car loans online, it is important to check the total cost of the loan in addition to the monthly repayment charge.

Agreeing to More Than You Can Afford:

Although you may want to buy a great car, you need to ensure that the finance deal is manageable for you. In order to be confident about this, you should calculate your budget, adding up all of your typical monthly expenses and deducting this from your income. This will illustrate your disposable income and show how much you can afford.

If you are looking for quick car loans, contact us. We are a specialist broker with finance options to suit all circumstances. You can apply for our quick car loans online or speak to a member of our team for help and guidance.