Continuing on, another aspect of car finance people often don’t understand is that unless you have a strong financial profile (no black marks on your credit file, money saved in the bank, in stable full-time employment, home owner, etc.) you’ll find it difficult to even qualify for the really low rates (typically 6% and below)!
Also, did you know that if you’re buying an older car (over 12 years of age AFTER you have paid off the loan), some lenders won’t even loan you money to buy it, and those that will typically charge much higher interest rates.
Therefore, getting the best loan for you would actually require you to apply to all of the big banks, the mid-tier lenders and the small players in the Australian market (of which there are more than 50!) to see which loan is the best for YOUR individual circumstances. Aside from the damage that would do to your credit file, it would take you AGES to do this!
However, who has time for that, let alone the financial expertise to analyse the difference between every single lender and their loans?
As “Sweet Brown” said, “Ain’t Nobody Got Time For That!” 🙂
In the end, most people just end up going with the loan and lender that’s easiest to get a hold of, even though it’s NOT the best loan for their circumstances.