Buying a new car usually spells headache, so let's take it one step at a time. If you can already see yourself behind the steering wheel of that lovely crimson Audi you saw proudly displayed just the other day, Glimp's car loan repayment calculator is just the thing you need. To make it easier for you, just follow these three easy steps!
Before engaging in advanced math, however, make sure to determine your monthly budget. The first thing to decide when considering a loan is how much money you can afford to spend. Most car loans are to be paid off in no more than 48 months, so work things out from there.
Next, decide on whether you'd rather buy a brand new car or a used one. With that decision we cannot help much, as nobody knows your situation better than yourself. Still, if undecided, consider this simple question: do you need a car now or can you afford to wait a bit longer for the opportune offer to come up?
But is there really such thing as an "opportune offer"? That will depend, of course, on your standpoint. If you have a large family and need a new car now or never, then now is certainly better than never. If you want that specific car model but it's a bit too expensive for you at the moment, then waiting a bit is better than over-borrowing.
No matter how hard you think about all the aspects, some variables will remain impossible to factor in. It holds true for all decisions, so the best advice would be: once you've made up your mind, stick to your plan no matter what. As this holds true so often in life, we barely need to remind you.
Our car repayment calculator will certainly help you transform your expectations into figures, and who could hope for a better start? Once you know your monthly budget, things will start looking up immediately.
The next step would be picking the best car loan type there is. Although different lenders offer different conditions, once broken down they spell the same basics. At a glance, car loans can be fixed or variable, secured and unsecured.
Fixed car loans, as the name portends, are those with fixed interest rates. It's good to know the exact sum due every month, but keep in mind that with these loans, the rates are usually higher. Variable car loans, on the other hand, have variable interest rates. This can be both good and bad - if the lender decreases the rate, your repayments will also decrease. If the rate increases, so will your repayments. Make sure to use Glimp's car interest rate calculator to clarify things on the spot.
Further out, car loans can be secured and unsecured. First, treat your new car as an asset — if you fail to make all repayments, the lender will get the car. Because of this possible outcome, secured car loans have better interest rates, seeing as the lender gets to keep your car even if you default on your repayments. Unsecured car loans are the exact opposite, but in order to qualify for one, you will need to provide a history of savings and information on previous credits/loans (if applicable).
The car payment calculator that makes all the difference is here. Now that you are familiar with car loan types and, having calculated your monthly budget, you are ready to select the loan that suits your needs best. Lenders are, so to speak, to be found at every corner. Banks, credit unions, and finance companies are many and diverse, so take your time going through their offers. Don't forget to read the fine print!
Our car loan repayment calculator might have helped you narrow the selection down, but don't overlook the potential benefits. These indeed do vary, but, if applicable, make sure to opt for the no early exit penalty and the extra repayment features. These will allow you to repay the loan sooner without any penalties. As interest rates go, these two possibilities can save you a significant sum of money.
Finally, who will become the lucky lender? As stated above, finance institutions providing car loans are abundant. The market is competitive, so expect many a good offer. Keep the fine print and your budget in mind and you will be just fine. Banks offering car loans include ASB, Kiwibank, Co-operative Bank, and Westpac.
Some of the trusted Credit unions are First CU, Police CU, and NZCU Baywide.
Some of the leading Finance Companies are AA Finance, Avanti Finance, Christian Savings, Finance Direct, Finance Now, Financepoint, Financial Holdings, Gem, I Finance, MARAC, MTF, NZ Loan, NZ Vehicle Finance, and Stadium Finance.
Another thing to keep in mind: the terms "used" and "new" cars, in case of some lenders, can be interchangeable to an extent. Namely, while some lenders take only brand new cars into account for new car loans, others might consider cars up to two years old. Why is that important? Simply because new car loans usually have lower interest rates than used car loans.
With our car loan repayment calculator and your budget math, you should be able to get that car the way you want it. However, let us not forget unexpected situations we cannot control in any way.
What happens if you default under the agreement? Well, regardless of the lender and car loan type, the universal obligation - regular payments - remains a constant. Should you fail to make regular payments, the lender might repossess and sell the car. Other fees — stated in the fine print — apply, too. Finally, if the sale doesn't cover your outstanding debt, you will need to think about the shortfall.
As you can see, reading the fine print of your agreement is an absolute must! If your calculations are correct, though, small chances of defaulting, so don't worry so much — and go get your dream car!
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