What do i look for when getting a loan??

Question

I am thinking of getting a loan to buy a new car. I have never had one before and dont know what to look for, what is a good deal for a loan.??

What is a good rate?what makes a bad rate?

Answer 1

Go to www.moneysupermarket.com.

In the money section you can input details of what you want and it will give you a list of all the loans currently available with the most competitive rates at the top.

If you see one you like you can apply for it online.

Answer 2

You should just finance your car through the dealership. Often times dealerships offer 0% financing, which means you don't have to pay any interest, which is much cheaper than getting a loan from a bank. Many times you can get a low interest rate financing plan with no payments for 6 months or longer, that is what I got when I bought my car.

If you are buying a new car, here is what I did when buying my new car to save some money. I went to the car company corporate website and did the "Build a car" thing so I would know approximately how much the car was. The quote the dealership gave me was higher because of freight and shipping costs, so the sales person decided to go 1/2 way on the freight saving me an extra $500. He also through in a block heater which is good because I live in a cold climate.

I brought the printout of the estimate with me. A good financing rate is 5% or lower, over 5 years or less. I think mine was around the 4% mark but I had my car paid off in 1/2 the time because I was making double payments every month which saved me a lot of money in interest.

Answer 3

It really depends on your credit. Just because you've never bought a car doesn't mean you don't possibly have credit cards or anything. I would recommend going to a new dealership and applying for a first time buyers program. A lot of times you can get a very low interest rate ranging from 0-5%. I would definately work them down on the cost of the car, they will try to scam you over as all car dealerships do. I wouldn't recommend going through a regular financial institution though because most of those help with bad credit circumstances. Its all about the interest rate. If you are already established with a bank, they would be a good one to talk to about getting a car loan. Their familiar with your financial circumstances, see when you get paid, see if you overdraft your account, etc. And since you're banking with them, you can probably get a low interest loan. The sooner you can pay it off the less you pay for it. They are stretching them out now over 7 years. Ask them how much your payments would be spread out over 3 years and 5 years. If you can afford the payments, pay it off sooner, you pay a lot less in interest.

Answer 4

The smaller the interest rate the best they usually range from
4-19% APR for most high street banks.

I would suggest you go to your local bank, to get the loan. Consider how much you will need to pay every month.
Consider how long you want the loan. As you are getting a car, my advise would be no longer than 3 years.

Speak to your bank, have a look on their website, and read the small print such as early repayment fee's etc

Answer 5

Hi, I would recommend asking your bank for a quote, they are usually the best option, if your buying a car from a dealer they can arrange the finance for you (might be more expensive though). I recently borrowed £3000 from my bank and I am Paying back a total of £3344 over 18 months, thats a fair price, don't go to a loan company that charges way too much, it's not worth it. Good luck

Answer 6

look for a decent interest rate, the ammount you borrow shoudl be taken into account, smaller ammounts usually have higher rates. also think how you will pay it back, how much money will be missing from your wages for the next few years.

if your buying a car don;t forget to work servicing into your calculations, when your car breaks down it could just be a £20 part need replacing, or it could be a whole new engine needed for £1500.

Also I reccomend you do not take out any payment protection insurance. It covers very little for a large cost.

Answer 7

Try a couple local credit unions. Good rates, they're usually easier to qualify with than a bank too.

Best part is, once you get pre-approved for a car loan, you can go shopping for your car. Don't tell them you already have financing, just push like crazy to get the price of the car dropped as much as you can. They'll usually try to make up for it with their financing, but after that, you tell them you already have your financing lined up.

Answer 8

Make sure the car is worth what you are paying for it. You can do a Kelly Blue Book or NADA search to find the value of your car. You also want to try and find the lowest interest rate.

Answer 9

you can get an unsecured loan (which means you don't need to pledge any collateral) from Advantage Loans. They have competitive interest rates and a fast payout. You can find out more on their web site.

Answer 10

you are better to go to your own bank for a loan as you are able to negotiate a bit with them, and you want a low interest rate thats where you negotiate with them, but if you are going to a garage you shpould enquire as to what they can offer you as sometimes they can be reasonable with the rates but your only restriction is you are unable to sell the car unlesss it is paid off so with a bank loan you win that way you are able to sell it in a few years,