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Looking For A Car Loan? Common Questions To Consider

Trying to secure a loan on your own is not easy, and if you’re not sure what you’re doing, the process can be frustrating. A car loan broker is the middleman between the lenders and borrowers. At Cherry Lending & Finance, we can help you get the finance to buy a car, whether you need it for personal or professional reasons. Here are five common questions to consider when looking for a car loan.

What is my budget?

One of the first things you need to look at is your budget when considering a car loan. One of the best things you can do is to create a detailed budget of your weekly expenses so that you can get a better understanding of where you stand financially. Applying for a car loan when you’re struggling to make ends meet won’t look good to lenders. You need to make sure you can make your repayments, and the best way to do this is to know your finances. A spreadsheet will help you determine whether you need to cut down on your expenses.

What is my credit history?

Lenders will look at your credit history to determine what interest rate they will give you. It’s important to know your credit history to first see where you stand and to see what negative challenges you need to rectify.

What loan term should I have?

Knowing your budget and credit history is the first step when looking for a car loan. Once determined, you can address what loan term you should have. The key element is knowing how long it will take to pay off your loan, and whether you want a longer-term loan to reduce the repayment amount, or if you want something shorter to reduce the overall costs.

Are there any ongoing fees?

When looking at your loan options, make sure you look at the whole cost and not just the monthly repayments. Are there any hidden costs? What are the monthly charges? This is important when deciding if this is something you can afford on top of all your other expenses.

Will I need a deposit?

Depending on your circumstances, you might not need a deposit for a car loan. However, having one might help if you have a poor credit history, and will lessen the loan amount. A deposit will make you look favourable to the lender so it’s always a good idea.

Are you looking for a car loan for personal or business use? We can help. With access to many lenders, we can help you find and apply for the perfect car loan to suit your needs. Give us a call, tell us a little more about yourself and what you’re looking for, and we’ll match you with the perfect car loan. You’re making a big financial decision, and it’s important to partner with someone who is going to look out for your best interests.