The Features That Make A Difference to a Car Loan

Companies offering car loans will keep on pursuing you to take loan from them and each of them will claim to have the best policies and terms & conditions to serve you. However, not all these loan packages are equally good. If you are to grab the best deal, you need to pick up a car finance package based on the following features or criteria.

The Annual Percentage Rate (APR)

When shopping for a car finance the first and foremost factor to look for, is the APR or Annual Percentage Rate (APR). The APR represents the interest amount you will have to pay for the loan during its entire term. Naturally, when you avail a loan with a higher APR, it will make a difference of quite an exorbitant amount at the end of the day, as far as the monthly EMI is concerned. Thus, with a loan package with a higher APR, you will have to pay a larger amount of money while for the one with a lower APR, the amount of money you pay every month for the car finance package in Geelong will come down.

Monthly Payment

As and when you take a car loan, you need to pay a certain amount of money every month, as in any other loan. Now, there are several factors that determine the amount you pay every month. They include the APR, the amount of loan you take, and the term of the loan. Now, there are provisions for you to find out the specific cost that you will pay on a monthly basis, there are online car loan calculators that can help you out.

The Term of the Loan

The term of the loan represents the entire length of loan. Or in other words, it is the period during which you will back the entire loan amount. The longer is the period, the lower is the monthly payment amount you have to pay — and vice versa. The experts would always suggest going for a short term loan, as even if it means you have to pay a higher amount every month, it will help you pay back the loan faster.

The Loan Amount

The loan amount is the total amount of money that you lend for buying the car. The said amount of money that you get in the form of Geelong car loans include the purchase cost of the car, the fees and the taxes payable, the amount you may owe on any trade in vehicle. The monthly payment you pay will depend on the amount of money you lend.

Fees and Penalties

Last but not the least, you need to know the fees and penalties that you have to pay if you fail the monthly EMI deadline, or have to skip monthly instalment of repayment.

So these are the 5 important features that you need to know about, before taking a car loan.