Car Loans

1. Your Requirements
Think long-term before choosing a car. Emotions can run high when buying, but focus on what you’ll need for the next 5–7 years. For example, if you’re planning for kids or need a vehicle for off-road trips, choose accordingly.

2. Budgeting
Apart from the car’s price, factor in additional costs such as:

• Car Insurance – Most lenders require comprehensive insurance.

• Stamp Duty & Registration – Usually included in new car deals, but not always with used cars.

• Accessories – Seat covers, upgrades or modifications.

• Ongoing Costs – Servicing, repairs, fuel and maintenance.

3. Negotiation
Always compare prices from multiple dealerships. Even a small discount can save you thousands over time.

4. Balloon Payments
A balloon (or residual) payment means you pay a lump sum at the end of your loan term.
Example: For a $50,000 car loan, you might repay only $35,000 over the term and pay the remaining $15,000 at the end. This reduces monthly repayments but remember you’re still paying interest on the full $50,000.

5. Secured vs Unsecured Loans
Most car loans are secured against the vehicle, offering lower interest rates. Unsecured loans are available but usually cost more.