Five Mistakes To Avoid When Buying Your First Car

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Five Mistakes To Avoid When Buying Your First Car

Are you about to commit to settle for your first car? Did you know that, despite what everyone else says, you have all the time in the world to prepare for one of the more important purchasing decisions you are bound to make in your life. There are so many different types of car loans in Melbourne with set fees and conditions that the whole process can often be overwhelming—and to some extent the market is that way to lure more buyers in. At Hunter Lending Group, we care about our customers, especially when they embark on a financial deal that may have severe ramifications in their future.

While this is just a taste of what to look out for when considering car loans in Melbourne, you should contact our mortgage brokers for more information that aligns with your preferences and specific requirements.

Here is a list of some of the most common mistakes our customers make when organising car loans in Melbourne.

Securing the car before settling the loan

It can be so tempting to jump at an opportunity, especially when it involves driving a shiny new vehicle. While you might be able to finagle what might appear to be a good deal, there is always the chance that if you fail to keep up with the repayments that you will not only lose the deposit, but you will also lose the wheels that you tried so hard to keep. This is why you should discuss complicated financial arrangements with a specialist like Hunter Lending Group to avoid disappointment.

Have you used a car loan calculator?

How much thought have you put into the loan? Do you know what the average loan rates are? Do you have any idea how much repayments are bound to be if you blindly agree to terms on the same day you find the car of your dreams? Make sure you have spent some time researching and comparing all things financial. If it doesn’t make sense, or you are confused by how certain loan packages are set up, you can always touch base with Hunter Lending Group.

The beauty of a car loan calculator is that you can explore a range of repayment scenarios by punching in different borrowing amounts, interest rates, loan terms, and repayment schedules. The more you understand your borrowing capacity, the less likely you’ll be shunted into a second-rate loan.

Did you double-check the rates as advertised?

The general rule is don’t assume—especially when we are talking about variable rates. One major mistake to make is to miss the difference between an ‘advertised’ rate and a ‘comparison’ rate where one is not inclusive of fees and is essentially designed to pique the interest of unsuspecting buyers. For a more thorough car loan comparison across multiple lenders, have a chat with the team at Hunter Lending Group.

Be weary of ‘balloon payments’

Are you familiar with the concept of ‘balloon payments’ where reduced monthly repayments may appear to be a good deal? Similar to the rates mentioned previously, it is important to be aware of any critical caveats that would ultimately be a deal-breaker like agreeing to pay a lump sum at the end of a loan rather than consistent, standard repayments. In this scenario, if you neglect that lump sum when comparing car loans in Melbourne, you might be in for a bad time, which is why you should always seek the opinion of a professional mortgage broker.

Can you make early repayments?

Whenever you accept car loans in Melbourne, most borrowers would aim to pay it off as soon as possible within the terms of the agreement. Sometimes you might be keen to increase the sum of your repayments to complete the loan sooner. There are some car loans in Melbourne that are designed to penalise anyone who repays more than the fixed repayment rate. This is a feature that you would probably want to avoid if you try to pay the loan off as soon as possible.

Call for Car Loans in Melbourne

At Hunter Lending Group, we specialise in refinancing. Contact us today on (03) 9497 4917 to set up a meeting to discuss anything from car loans in Melbourne to home loans, investments, and more.

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