Just like any type of financing, there is always room to negotiate when talking of interest rates. However, the interest rate you will get comes down to a variety of factors about you and the car you’re buying. And it’s important that you consider them all -because what may appear to be just a fraction of a percent, could save you hundreds – if not thousands – over the term of the loan.
Ideally, you want to secure the best interest rate before you’re locked into a car loan. That way you don’t have to worry about going through the process a second time. In order to secure the lowest interest rate before you buy, you have to understand where you stand on the ‘ideal customer’ scale for a bank. All the below factors influence the interest rate you can achieve:
So what should you do? Irrespective of if you’re applying for a new loan, or wanting to refinance an existing one, to ensure you get a lower interest rate you really should speak with a broker.
There’s a LOT to consider and you don’t want to misstep when you’re dealing in the world of finance and credit. One false move could appear on your credit file and blot your good name for the future.
A good car finance broker will find you the best interest rate by comparing lenders based on your unique situation. That means taking into account your credit score, business/personal use, the car, the LTV, property ownership status, and your personal situation to find you the best Lender and the best approval pathway.
This expertise is something you will NEVER get on those ‘interest rate comparison sites’ which just show the best interest rate for each lender. For example, Lender A might have a lower ‘headline’ interest rate on the loan comparison sites. However, once your situation is taken into account, Lender A might offer you a much higher interest rate than lender B -even though Lender B’s lowest ‘Headline Interest Rate’ is higher than Lender A’s. This is very common, and it’s why you need the expertise of a Broker!
If you’d like to speak with a Broker and compare interest rates from our panel of over 30 Lenders, pick up the phone 1300 301 051 or contact us here for an obligation free chat today.