How to select the best quote
Before deciding which quote is best for you, you should consider some important factors:
- interest rate
- fees and other charges
- payout penalties and retained interest
- comparison rates
- monthly repayments and
- service along with advice
The interest rate is usually considered as the most important factor and a lower interest rate is considered ideal; but making your interest solely on the interest rate charged can be a bad move in the long run.
Before choosing a car purchase option based on solely the interest rate consider the fees you have to pay to the establishment you are purchasing the car from and also consider the overall cost of the loan.
You should also keep in mind if there is any retained interest charged by the institution. A retained interest or payout penalty is a hidden charge charged by almost every institution in Australia if you decide to pay the full amount early and end the current purchase agreement with the lender.
Using a payout penalty calculator can help you understand how much you may have to pay the establishment in such a scenario. This being said, a few reputed lenders and car purchase brokers can help you get a loan without having to pay retained interest or a payout penalty.
Using a comparison rate calculator can help you understand your own indicative comparison rates if you are opting for a commercial car loan. You should also remember that the best quote will ensure flexibility and the lender will offer you with the services you need for a competitive price.
Before choosing a car purchase quote, you should finally consider if the chosen establishment is well educated and experienced about car finance since choosing such an establishment that offers prompt advice and service can help prevent problems later on.