Tip 1: Check YO options.

  • Shop around, but don't agree to anything until you're certain you can afford it.
  • Once you're sure, you can apply for loan approval (called a credit enquiry).
  • Once you've been approved, you can move on to the next stage.

 

Tip 2: Figure out the loan for you.

  • Secured car loans are where your car is used as collateral against you not paying (but they also use lower interest rates).   
  • Unsecured car loans have no security attached but run higher interest rates, depending on your credit score risk.
  • So, before you agree to a loan, ask yourself seriously 'what am I prepared to negotiate?’ 

Tip 3: Consider a potential lease.

  • You can lease cars for personal or business uses.
  • Under a lease, you won't own the car, so you'll have to make regular payments (like you would when renting).
  • Once you've finished, you can buy the car outright at a reduced rate or take out a new agreement on a different vehicle.

 

Tip 4: Use an online car calculator. 

  • Check your bank balances to see what you can afford.
  • Add up the combined total of all your costs (power, phone, etc.).
  • Use this to work out a realistic car loan budget.

Tip 5: Think about package deals.

  • If you're sorting all your finances at once, what are the interest rates when signing with a bank?
  • Can your bank offer discounts if you have a mortgage, credit card or savings account?

 

Tip 6: Look out for additional costs.

  • Don't jump straight onto the lowest interest rates.
  • Check for hidden fees.
  • Calculate all fees before striking any deals.

Tip 7: Be prepared for change.

  • If your financial situation changes, don't stop repaying. Talk to your lender about arriving at a new payment solution.
  • Don't take out a loan unless you need one.
  • Consider an older car model to save on costs.

 

Things to consider (our tips in a nutshell).

  • Schedule an appointment with a financial advisor.
  • Check out what options they can give you.
  • Make sure it fits with your financial commitments.
  • If you're sorting all your finances at once, what interest rates can your bank offer?
  • Can your bank offer discounts if you have a mortgage, credit card or savings account?
  • Don't jump straight on the lowest rates.
  • Check for any hidden fees.
  • Calculate all fees before striking any deals.

 

Need help managing your money? Yonda's here for you.

Yonda's all about helping you make the most of your money so that you can score the best deals out there. We believe knowing your credit score's an essential step to making the best financial decisions, including finding the right car loan.

That's why we've released a new app to help you learn about your credit score rating and give you further information on making better financial choices.

Sound good? Head to our homepage to download the app and find out more.

Disclaimer.

Info and tools on the Yonda website are used as a guide only and do not constitute financial advice. Use Yonda as a starting point and then seek professional advice.

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