If you need a little help paying for your used car purchase – as most of us do at some point in our lives – you’ll need to investigate used car finance.
Most private buyers opt for a personal loan or car loan when financing a used car in Melbourne. Personal loans and car loans work on much the same principle – a one-off amount is borrowed and repaid in regular installments over a specified period of time. With car loans, the car being purchased is often used as security against the loan, which can mean lower interest rates.
The options for financing used cars in Melbourne are numerous. As a major capital city, Melbourne is bursting with banks, credit unions and building societies that can offer used car loans and personal loans. Many people choose to go with the used car finance offered by their current Melbourne bank; this is generally a convenient option, but it’s a good idea to spend a little time researching and comparing other possibilities before making your final choice.
There are a number of “online only” used car finance options available to Melbourne car owners; because their overheads are generally lower, so are their interest rates. However, it’s important to keep in mind that you’re likely to be sacrificing personal contact. Depending on your circumstances, used car finance can be straightforward, or it can be complicated – if face-to-face service is important to you, you should aim to choose a car finance company that has a customer service office in Melbourne.
When comparing options for used car finance in Melbourne, be very careful to ensure that you fully understand the terms and conditions of each loan. There are a number of things to look out for – aside from interest rates and general upfront or ongoing fees, find out whether you’ll be charged a penalty for late repayments, or for paying out the loan early. Also, if the car is being used as security for the loan, you’ll probably be required to take out a comprehensive insurance policy. The best way to choose between different finance options is to work out the total amount you’ll end up paying over the entire loan period, and use this figure as the basis for your comparison