Researching loans.

2min read
Posted 10 April 22

There are many car finance options on the market, all with different levels of risk and interest repayments. Before you make any application, you should be researching other options online and working out what you can afford to borrow.

Start by checking out your bank statements. From there, you can work out how much you can afford each month after you've managed all your bills. 

 

Online calculators. 

An online car finance calculator can help you with the maths here. Each site you go to for a car loan should have the option to check your weekly expenses against a set repayment period. 

If you know your credit score already, you could try talking to different car lenders about their lending policies. 

 

Quotations.

Before you complete a loan application, try to get a ballpark figure on what you can realistically borrow. A quotation enquiry gives you an amount without a full credit enquiry taking place, which prevents any impact on your credit score. For more information, see 'Credit scores made easy' in yo-library.

 

Add up all the costs.

Don't automatically jump on the loan with the lowest interest rates. Other fees add up over time, meaning you could be paying more money than you bargained. Try different car financing calculators to work out extra charges and factor in those fees. Or speak to your lender about repayment options based on the advertised borrowing price.


 

Stop! Disclaimer!

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