| Dealer ads frequently announce "the best used car | | | | take all the hard work out of comparing used car |
| loan rates available", but the interest rates differ | | | | loans and rates between various financial institutions by |
| enormously, so how do you know who is telling the | | | | doing the comparison shopping for you. |
| truth? | | | | In most cases, online used car loan providers work |
| And it is not just the auto dealerships who put out | | | | with a variety of lending institutions who offer a |
| billboards offering the best car loan rates in town, | | | | number of different loan products. By completing an |
| finance companies and a variety of other financial | | | | online form that requests personal and financial details, |
| institutions go down the same path. | | | | the loan provider can assess your circumstances and |
| So, short of getting out your financial calculator to | | | | current position and then determine which of the |
| work out the maths, how does anyone in the market | | | | lenders they have agreements with will provide the |
| to buy a used car know if they are getting the 'real | | | | best match for your individual needs. |
| deal'? | | | | Some of the criteria they take into account are: |
| While the solution to finding the best used car loan | | | | The deposit you have available |
| rates in Australia may not require a calculator, it does | | | | * Your current employment status |
| require some research if you want to reap the | | | | * Your ability to repay the loan |
| benefits. | | | | * Your previous credit history |
| Many people head to their bank or credit union initially. | | | | * The market value of the car and the amount you |
| While the major banks, and more particularly the credit | | | | want to borrow |
| unions, offer very competitive rates for used car loans, | | | | * The term over which you would like to repay the |
| their lending guidelines are very stringent, making it | | | | loan |
| virtually impossible for the average guy in the street to | | | | * How old the used car is |
| meet the qualifications. | | | | The most important factors are a stable employment |
| So, back to the car dealerships or the local used car | | | | history, a sound credit rating and the ability to repay the |
| lot, where car finance is readily available - generally | | | | loan over a reasonable period of time. Many online loan |
| with a hefty fee for service or interest rates that | | | | providers guarantee to get back to you within 24 to |
| would leave the proverbial loan shark slack-jawed! But | | | | 48 hours with an answer. This time is necessary for |
| that is not always the case; the large, prestigious used | | | | them to verify and confirm the financial information you |
| car dealerships generally work in partnership with one | | | | have provided. |
| of the large finance companies and occasionally you | | | | Because the loan providers have contracts with a |
| will find used car loan rates that are | | | | number of financial institutions, they can use their |
| close-to-competitive. | | | | network of lenders to obtain the best used car loan |
| In many cases, the loan rate offered will depend on | | | | for the amount you want to borrow, the required loan |
| how badly the dealership wants to sell you the car and | | | | term and the monthly repayment schedule. |
| whether the markup on the vehicle you want to | | | | So if you have been pulling your hair out looking for the |
| purchase is sufficient to make their sales quota for the | | | | best loan rates, you can put down your calculator and |
| week. In the majority of cases, the dealership earns a | | | | grab your computer mouse instead and head online. All |
| commission on every new used car loan they initiate, | | | | the work is already done for you, so you can relax in |
| so they are going to get you - one way or another. | | | | the comfort of your office chair while browsing the |
| Savvy buyers are now going online to find the best | | | | Internet and not only find the best used car loans in |
| used car loan rates available by using one of the | | | | Australia, but the best used car loan rates as well. |
| quality loan providers/brokers. Online loan providers | | | | Now, isn't that a pleasant thought? |