Check out the deals offered by as many lenders as possible, including banks and credit unions.
You’re looking for the best interest rate and lowest fees.
By law a lender can only charge reasonable fees, and they must also give out a disclosure statement detailing all the terms of the loan. This should happen before signing, or within five working days of signing. Ask for a copy of this statement and read it carefully before agreeing to any deal. If the statement is difficult to understand, ask questions, and a budget adviser can help you get answers.
Interest rates on car loans can vary widely, so we need to shop around. Agreeing to a car loan ‘secured’ by the car usually means a lower interest rate. This means if we don’t meet the repayments, the lender can sell the car to recover the money owing.
If we have an existing relationship with a lender, it’s often easier to access cheaper loans. For example, a credit union might offer car loans with better terms to its current members.