New Year’s Resolutions
2010
Happy new financial year! Now is a great time to start afresh by reviewing your financial goals and putting strategies into place to achieve them. If you plan and take action, you could really hit the ground running for 2010/11. You may have a tax return, or an end of financial year bonus or a new pay increase which can contribute to you achieving these goals.
This applies to whether you looking at upgrading or downsizing in a new car or even refinancing the residual at the end of your loan term. You can do this wisely and prudently if you have a proper strategy and stick to it.
Consider the following tips in getting the best deal possible on your next car:
Cash Up
Try saving your tax returns and bonus towards a deposit in your new wheels. By doing this you reduce the amount of exposure you have on the goods and make yourself more appealing to the lender. Lenders are conservative and want to know that their risk is reduced if in case the loan goes ‘pear shaped’. By saving a good deposit, you give the lender more of a reason to say ‘approved’. It shows thought and planning has gone into the process of purchasing the car. With refinancing of residuals, don’t just accept what the current financier is offering you. Seeing a broker may add a few extra steps to the process, but it could work out to be a very worthwhile exercise.
Match the loan repayments to your budget
Before you go out looking for a new car, determine what you want to spend in accordance with your monthly budget. There is no use falling in love with a car that will cost you repayments of $700 per month if you only feel comfortable paying $500. Be realistic and factor in a “buffer”, that way if your circumstances change, it is still easy to meet the minimum repayments. Use a budget calculator, spend some time analyzing your circumstances and then make your decision. There are great deals on all the time, you won’t miss out.
Think outside the interest rate
When you do get the car loan, make a promise to make additional repayments where ever possible. You may be finding that the loan you are going for may not reward you for extra payments but sting you with fees instead. Try to get a loan product which enables you to make these additional payments so that when next financial years comes around and you have some extra cash, you can place this on your loan and effectively reduce the amount of interest you pay in the long run for the car loan. Choosing the best car loan requires more than finding the best interest rate. Features such as the ability to make additional repayments can save you hundreds or even thousands.
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