That doesn’t mean that the sailing is always going to be smooth however, you still need to have your wits about you. It’s a great tactic to plan your visit well in advance, so you know exactly what you are looking for and exactly what you are prepared to pay.
So, before you hit those used-car yards, read through the following tips and you might save yourself hundreds or perhaps thousands of dollars.

• First of all, do some research on the Internet and choose a car that is going to suit your needs. Make sure it has the right safety features, and make a note of any accessories you want to include, like towbars or roof racks. Fuel consumption is another important consideration and you can check out the technical specifications well in advance so you know what you’re in for.
• Do a budget and set a maximum limit for any car loan you want to take out. Then, visit several lenders and get comparative quotes making sure that you factor in all of the associated application fees and ongoing account keeping fees that may be charged. Once you have found a good deal, apply for a preapproval so that your finances are well and truly taken care of before you reach the used-car yard.
• When deciding on the appropriate car, make sure you visit user review sites to get an idea of what existing owners have to say. You might even find some comments about car dealers there too, so you are forewarned and forearmed. In other words, don’t take the manufacturer’s descriptions of features and benefits as gospel
• Check out the prices of vehicles by going to Internet sites where existing owners are offering their cars for sale. This will give you a very good idea of the prevailing market value and you can use this to negotiate with the car yard. If necessary, you need to be prepared to buy privately, provided you can get a vehicle inspection that satisfies you.
• When you are in front of the salesperson make sure you maintain your calm and do not allow yourself to fall for any trick that calls on you to make an immediate decision. In fact, it is a better option to go to the car dealer without any intention to purchase at all. Go there to get information that you can use when you come back later.
• Never take any notice of the listed price and be prepared to negotiate strongly. If you have done your research properly and know the approximate market value you are more likely to strike a better deal.

Used car dealers will always want to try to arrange car loans for you, but unless they can match the offer you have from your preapproved deal, stand your ground and don’t sign anything.

5 Tips on Dealing with a Used Car Dealer. is a post from: Dreamloans Blog

Every bank has its own range of lending products, but interest rates and conditions are reviewed constantly. What is advertised as a competitive rate one week may not necessarily apply in a few weeks time, so it’s probably a safe bet to ignore newspaper and television advertising!

The problem is, you will never know how competitive your bank is until you get a quote and then compare it with other prospective lenders in the market. Whilst it is true that banks want to offer more competitive products to their existing customers, it is not always possible for them to do so. It is also a false belief that bigger banks can offer better rates. Many banks capitalise on this consumer belief and may actually charge their customers a higher rate than they might obtain somewhere else.

The bottom line is this: don’t believe the advertising and don’t believe the hype. Bigger is not always better.

The only way to ensure that you get the best and cheapest car loan is to find out what other lenders have to offer before you make your decision. Here is what you can do.

• Work out exactly how much you are willing to pay in monthly loan repayments. This might require doing a budget before you work it out but it could be the best few hours you spend in your life. Living within your means gives you peace of mind, so don’t be tempted into borrowing more than you want to, even when the bank tells you they are willing to lend you more.
• Once you have worked out your monthly budget and you know exactly how much you are prepared to spend, it’s time to hit the lending trail and work out exactly what each lender’s loan is going to cost you per month. Remember to include not just the monthly repayments but also any ongoing fees plus application fees, legal fees, settlement fees or documentation fees that the lender is going to charge you. This is the only way you will know exactly how much you have to borrow because the lenders will package all these fees into the loan amount and work out the monthly repayment from that total.
• Don’t be tempted to pay extra per month to borrow that little bit extra. Stick to your budget and make sure your monthly repayments are no more than what you initially decided on.

Going to your existing bank is a great place to start looking for car loans as long as you don’t expect the best deal. Shop around and do the figures first and you might get a pleasant surprise.

Why Your Bank May Not Give You the Cheapest Personal Loan. is a post from: Dreamloans Blog

When you think about it, banks are like any other business and will use every sales technique at their disposal to convince you to buy their product. Although lenders are required to act responsibly when it comes to lending money, they are not obliged to tell you about their competitor’s products, nor are they obliged to offer you an easy way to compare car loans.

You need to know a few tricks of the trade before you can do the proper comparisons and that’s what we are going to discuss right now.

• We have just said that the cheapest interest rate does not necessarily mean the cheapest loan. How can this be? Well, look at the following example to find out why. Say you want to borrow $20,000 over five years from a lender charging 14%. Another lender has the same offer but wants to charge an interest rate of 14.5%. The loan repayment at 14% would be $460 per month. Loan repayments at 14.5% would cost $464.95 per month. But if the first lender charges a monthly account keeping fee of $10, the interest rate effectively changes to 15.01%. That’s why you should never make a decision based upon interest rates.
• The only safe way to work out the cost of a loan to compare with other lenders is to summarise the entire cost over its nominated term. For instance, using the same example above, the first loan at 14% interest would cost a total of $27,600 in repayments plus another $600 in account keeping fees making a total of $28,200. The other loan at 14.5%, without any ongoing fees comes to a total of $27,896.85, a saving of $303.15 over five years. When working out this total, make sure you add in application fees, settlement fees, documentation fees or any other fee that the lender charges. In this way the total amount of money you have to repay can be easily established and you can compare loans between lenders without being misled.
• It is a matter of common sense to pay out your loan as quickly as possible. This saves on interest repayments and the overall total you pay back will be less. But beware of lenders who charge early repayment fees. There is no point paying out a loan earlier if the fee charged is more than the saving you would make. Clarify all fees with the prospective lender before you sign up and choose the terms of your loan with this in mind.

When you follow the above points, your next car loan should be the cheapest one on the market. Avoid any upsells and clarify all costs before you make your decision.

How to Choose the Cheapest Personal Loan is a post from: Dreamloans Blog

It might be easy to say ‘make sure your next car loans that you perfectly ‘, but sometimes it is not that easy.

You need to know a little bit about how personal loans work before you can make your choice, so planning ahead can save you a lot of heartache as well as a lot of money.

Here are some things you may not know about personal loans that will help you to come to the right decision.

• The interest rate charged on a personal loan varies from lender to lender. But the interest rate is also affected by whether the loan is secured or unsecured. A secured personal loan is one where the lender takes an interest in your car so that in the event of you’re not being able to make repayments, they can sell the vehicle to get their money back. An unsecured loan is where the lender takes all the risk. That’s why unsecured loans are more expensive than secured loans; they are simply a reflection of the risk taken by your chosen lender. Where possible, you should always seek a secured loan as this gives you the benefit of a lower rate and a lower monthly repayment.
• Whilst most personal loans allow you to make extra repayments so you can pay the loan off sooner, there may be penalties for paying out the loan too soon. This is a question you should ask before you apply so that you are well aware of all the costs that may be involved. If you are planning to pay a loan off sooner, then you could be better off choosing a shorter loan term rather than facing an early repayment fee.
• Personal loans always come with some sort of application fee. But many lenders are in the habit of charging an ongoing monthly fee. This monthly fee has a real effect on the effective rate of interest you are being charged, so it pays to ask the question about these fees before you start. Some lenders even charge settlement fees or documentation fees, all of which add to the overall cost of your loan. Make sure you ask the question before you sign up so you don’t fall into that trap when it is too late.

It is natural for borrowers to approach their existing bank when it comes to car loans or personal loans for any purpose. Whilst it may be a good place to start, don’t expect to get the best deal every time. Banks change their lending practices, and their interest rates regularly, so what you may have seen advertised last week may not necessarily apply now.

Plan ahead when choosing your next car loan, and get all the information in advance before making a decision.

What to Look For in a Personal Loan. is a post from: Dreamloans Blog

Let’s face it, banks are in business to make money and you should expect them to try a few sales tricks on you to maximise your borrowing and to squeeze every cent out of you they can. Happily, you don’t have to become a victim when applying for your next car loan, in fact you can squeeze a better deal than you ever thought possible! If you do your homework and make sure you recognise the traps when they are presented to you, you will emerge with the best car loan for your circumstances and hopefully save yourself hundreds of dollars in the process.

• It really does pay to plan ahead when you are purchasing a new car and the same applies to your car loan. It doesn’t matter whether you are buying a used car or a brand-new car, the best plan is to get a preapproval from your chosen lender before you start to shop. Naturally, you will need to have some idea about what you will have to spend but before you set your limit, work out what you can comfortably afford to pay on your car loan. By setting this limit you won’t fall into the trap of buying a car that costs you too much. It is so easy to be talked into extras by the car dealer, especially when it only costs a couple of dollars extra per month. Believe me, these little extras soon add up and can leave you with a very sour taste in your mouth.
• Lenders will always try to upsell you when you are signing up for your car loan. Even if you have obtained a preapproval, the real sales process begins when you are in front of the bank officer signing the documents. You will more than likely be offered some form of insurance product that protects you in the event of illness or accident. Some policies also give you added death cover and some will even cover you in the event that you lose your job. Before you fall into the trap of signing up, check your insurance position before you start. You may have other insurance products that give you enough protection and signing up for these extras can only be a waste of time, they can cost you substantially more per month.
• When you are working out which loan is best for you, make sure you ask the prospective lender about any add-on fees such as application fees or ongoing monthly fees. It might come as a surprise to you to find that there are several hundred dollars involved in these fees and could be the difference between choosing one lender over another.

The facts are clear, when you are choosing a car loan you need to do your homework and prepare yourself for the sales pitches that are likely to come your way. Follow the above points and you will come out unscathed.

Look Out For These Car Loan Traps. is a post from: Dreamloans Blog

But don’t be too hasty in accepting the first offer that comes your way. Lenders are experts at putting bells and whistles on their loan products so you need to be knowledgeable before making a decision. Be prepared to do a little bit of home work and you could save hundreds or maybe thousands of dollars, depending upon how much you borrow.

Here are some traps you may not have thought of.

• The interest rate does not tell you the full story. A lender may be advertising a car loan at 14% for example, and a credit union might be offering a car loan at 14.5%. Which one is the cheapest? Well, you won’t know the answer to that question until you ask a few questions yourself. Find out whether there is any ongoing monthly account keeping fee attached to the loan. In some cases a lender will add a monthly fee of, say $10. This will increase the effective interest rate you pay and in the above example with a loan of $20,000, the first lender is effectively charging 15.01%!
• Many lenders will want to sell you add-on products as you go through the signing up process on your new car loan. A typical example is to sell you insurance products including income protection that guarantee to maintain your loan repayments during periods of incapacity or even where you lose your job. Don’t be easily seduced by these products because they can easily cost you an extra $50 a month or more, in some cases depending upon your age and the amount borrowed. In many cases, workers compensation payments or other insurance products you already have will give you adequate protection, so don’t sign up on the spot, do your homework first.
• As well as selling insurance products, it is becoming an increasingly common practice for lenders to offer you extra credit cards to help you with emergency purchases. Although it might be tempting to accept the offer of easy credit, you are far better off avoiding this temptation and limiting yourself to a loan that covers your exact expenses and nothing more.

Just by taking note of these simple facts can save you hundreds of dollars over the term of normal car loans. By not falling into these traps you may even be able to save enough money to buy some of the accessories you didn’t think you could afford in the first place!

Choose your car loan as carefully as you choose your car, be wary of the above facts, and you are well on your way to saving yourself a lot of money.

Don’t Fall For These Cheap Personal Loan Traps. is a post from: Dreamloans Blog

It is easy to be seduced by car dealers who try to introduce a sense of urgency into a car purchase by telling you things like ‘this is the last one at this price’ or, ‘we already have a lot of people interested in this car so you’d better be quick’. Sure, you might miss out on one vehicle by going away to do your homework, but you can rest assured that there are plenty more deals around that will be as good as or better than the one you may have missed.

There are some quick tips you can use to save money when borrowing to buy your new car.

• If you are purchasing a second-hand vehicle make sure you have it inspected by an expert before you make a final decision. Pre-purchase inspections are conducted by most motor vehicle associations in every state and this is the easiest and most effective way to check on the quality and reliability of the vehicle you are considering. Failing that, you could use a knowledgeable friend who can guide you in the right direction.
• When buying a brand-new vehicle it is easier to make your decision because you can do a lot of research online so that by the time you get to the dealer you will be certain of the accessories you want and can price them accordingly without having to haggle with the dealer.
• Once you have an idea of the costs involved you can seek a preapproval from the lender of your choice. This gives you more bargaining power as you can make a certain offer knowing that you have the money ready to go.
• When choosing your car loan, don’t make all of your judgements based on interest rate. Get the lender to give you all the associated costs, including application fees and any monthly service fees and then add up the total amount the loan will cost you over its entire term. This is the real amount you are paying for your car and is the only way to make comparisons between lenders.
• Once you know how much your loan is going to cost and how much money you have to spend, make a firm resolution to not deviate from the amount you have chosen. It is easy for a dealer to talk you into extras that you may not want and many of their after sales extras may leave you with a sour taste in your mouth.

As you can see, choosing a car is as important as choosing car loans. Take the time to plan your purchase carefully and you’re not only get the best car, but you will get it for the cheapest price as well.

5 Tips on Borrowing to Buy a Car. is a post from: Dreamloans Blog

Many new borrowers look for the cheapest interest rate, others look to get the highest possible loan amount, while the remainder sit back in a world of confusion. It doesn’t have to be a difficult task, but you certainly need to have a clear mind and a definite plan of action when shopping for the best car loan. Everyone has their own particular needs and budget so it pays to plan ahead. Let’s take a look at three things you can do to make sure you are getting the best deal.

• Shop Around. One of the mistakes that many borrowers make is to choose the car before they choose a loan. By all means get some pricing on the cars you are interested in but don’t fall into the trap of signing up with a dealership for the car loan as soon as you make your decision. Remember, the price of the car is not as important as the price of the loan, after all it is the loan you are paying for in the long run. Shopping around means finding the best car loan before you make your final decision, and this means going to a number of banks and credit unions to discuss your needs and obtaining a preapproval before you do the deal.
• Decide on the Loan Type. Car loans can be either secured or unsecured. A secured loan means that the lender will take a lien on your car which means that it has a legal right to repossess your car if you do not make your payments on time. Having this security means that the lender can charge a lower rate and this means you will pay less in the long run. An unsecured personal loan means that the lender is taking all the risk, and because it has no security, will charge you a higher rate of interest.
• Choose the Shortest Term. By paying you a personal loan out over the shortest possible term you will reduce the interest payable on the loan. This means that you should do a detailed budget and commit yourself to the maximum repayment possible. Paying your loan off quickly not only means that you pay less interest but also gives you a good standing with the lender. Future borrowing will be a lot easier if you stick to your plan.

By shopping around for the best car loan before you decide which car to purchase means that you will save money. Remember that a $500 discount on the purchase price of the car at a dealership can easily be lost by accepting a car loan which charges a higher rate than you may have been able to obtain at an alternative lender.

3 Tips on How to Get the Best Car Loan. is a post from: Dreamloans Blog

But think about this: how would you feel about paying off a used car auto loan for a vehicle that didn’t outlast its short-lived warranty period?

Despite more stringent guidelines to protect purchasers who are looking for a quality used car, the Safety Certificate that must accompany any used car for sale is only as good as the mechanic who issued it.

The sensible solution is to have your prospective new vehicle inspected by a qualified safety inspector, who knows how and where to look for shoddy patch-up jobs or potential hazards that may arise as soon as the warranty has expired. Although you may have to pay a couple of hundred dollars for the inspection, you could save yourself thousands of dollars in the long run.

Safety inspectors are available through your state auto services like NRMA, RACV or RACQ or through private contractors.

Not only will a used car auto check give you peace of mind, it will also give you additional ‘brownie points’ when it comes to applying for a used car auto loan. While it won’t make the difference between you being approved or denied a used car loan, most loan institutions look on a safety check favourably. It proves you mean business and are willing to go the extra distance to prove the used car you want to buy is worth the additional expense.

Once the used car auto inspection has been given the tick of approval, the next step is to apply for a used car auto loan, unless you’re one of the very few people who can afford to pay for a used car outright.

If you’re sensible enough to do your homework on the used car, then you’re undoubtedly sensible enough to do your homework on the used car loan too. With the help of your trusty computer, this process is now easier than ever.

You can now shop for the best car loan rates online from a number of sources. Most of the major banks, credit unions and financial institutions now give you access to their car loan application forms online.

But savvy car loan shoppers are heading towards the online loan providers/brokers, where the car loan that is most suited to your particular circumstances can be accessed with the ease of a couple of mouse clicks. Online loan providers operate by aligning themselves with a number of major financial institutions who all offer different styles and types of loans for varying purposes.

The process is easy and time-saving. After doing your research, you decide on the loan provider who fits your needs for a suitable used car loan. They will request personal and financial details including:

• The cost of the car and the amount you wish to borrow;
• Your intended loan term and the anticipated monthly repayment amount;
• Details of your employment;]
• Verification of your credit history.

Once the loan provider has confirmed and verified your details, they select the lender who they believe will best suit your loan needs. In most cases, they guarantee to get back to you within 24 hours with a decision.

Online loan providers do all the hard work for you so you can feel comfortable and secure knowing they have sought out the best used car loan rate available from the best used car loan company. And doesn’t that make that auto check you had performed when you found the car of your dreams all worthwhile?

Don’t Get A Used Car Auto Loan Until You Get A Used Car Auto Check is a post from: Dreamloans Blog

Depending on your financial situation, your credit rating and the amount you want to borrow, there are a number of loan options available. Once upon a time, most people headed straight to their local bank or credit union, but these days various lending institutions have created new opportunities for auto loans that weren’t previously available.

Most auto dealers are in partnership with one or more finance organizations so it’s likely they will offer you their services. But you need to know that most car dealers make a commission on every loan that is brokered through their dealership, so it’s in their best interests to ‘sell’ you both the car and the loan.

The most valuable decision you can make when getting a car loan is to shop around for the best loan, which is now easy to do via the Internet. From the comfort of your computer, you can check out the major banks’ lending rates, the loan rates offered by credit unions and also the choice of rates offered by the many online loan providers.

While it was once true that the major banks used to offer the most competitive loan rates for new and used car loans, that is not necessarily the case these days. Banks tend to have the most stringent lending guidelines; a deposit of up to 25% is often required and your credit rating has to be unblemished. In addition, most banks will only lend funds on new cars or used cars up to a certain age – usually 5 to 7 years.

The factors that apply to bank loans are important considerations when shopping around for the best car loan rate online. In most cases, Internet loan providers will request personal and financial details so they can make an assessment. Based on their analysis, they can choose the best lender for your particular circumstances from a comprehensive range of lending institutions.

The factors they will take into consideration are:

• The deposit you have available
• Your current financial position and your ability to meet repayments
• Your previous credit history
• Your work situation
• The age and condition of the car you want to buy
• Whether the loan will be secured or unsecured
• The repayment amount and the term of the loan

In most cases, online car loan brokers promise to get back to you within 24-48 hours with an answer. This time is necessary to verify your details, confirm your credit rating and determine the best car loan for your needs. No complicated forms to fill out and no need to get down on bended knees to beg!

You can make the process even easier by ensuring you have all the relevant information available. Important points to consider are:

• Do you have proof of steady employment, ie., income statements, recent tax returns?
• Have you checked your credit rating and is it acceptable?
• Have you calculated a reasonable monthly repayment amount? The less you pay per month, the longer the loan period and the more interest you will pay over the term of the loan.

The requirements to get a car loan are easier and more convenient than ever before with the use of the Internet. After all, the web is available to you 24/7 and you can do all the work from the comfort of your own home computer.

What’s more, the popularity of Internet loan providers has created a competitive, thriving industry where you can be sure you will get the best car loan rates available. Just be sure to do your homework first.

Get A Car Loan Without Getting On Your Knees! is a post from: Dreamloans Blog