Parameter to Consider When Going for Car Financing

Are you looking for a used Mitsubishi outlander for sale in Canberra? Or do you need a new Mitsubishi? In any case, you may need car finance for a seamless, free of hiccups car buying experience. In Canberra, you will find several dealers and financial institutions offering financing options for new as well as used cars. However, not all car loans are the same. You need to weigh the options before selecting one.

Let us go through the parameters for comparing car loans.

Interest Rate: This is the first and the most important parameter. You need to compare interest rates offered by various car finance in Canberra. The interest rate will directly impact your cost, EMI, and repayment schedule. So, compare the interest rates first.

Application Fee: When you apply for a loan, you may have to pay a certain amount for the application fee. Now, this fee varies from one lender to another. Some lenders may have eliminated the application fee but would hike the interest rate. So, you need to compare both interest rate and application fee, when considering your car financing option.

Other miscellaneous Fees: Used or new car finance schemes generally come with several miscellaneous fees, which may include (but are not restricted to): 

• the monthly service fee
• the default or missed payment fee
• Any other fees as per the lender’s set terms and conditions. 

You must evaluate each of these parameters independently before eyeing a particular one. 

The Loan Term: This is another important parameter to compare finance packages if you are looking for a new Mitsubishi for sale. Remember, the short-term finance packages will have a higher EMI. Long-term loan packages, on the other hand, lead to lower monthly repayments. Here, you need to consider if the EMI outgo would fit your monthly budget.

If it is possible to make some extra repayments for no extra charge

You need to also evaluate whether it is possible to make any extra repayments without paying additional fees. Some lenders may charge a penalty or a small fee for prepaying the loan.

Compare these parameters to shortlist car finance packages for your needs.