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السبت، 20 أغسطس 2011

What You Need to Know to Find the Best Car Loan

What You Need to Know to Find the Best Car Loan

That this subject which we will talk about a very important topic because it will promote your Read this issue

To help you find the best car loan you need to understand how APR and loan terms work.

- APR - this is the interest rate at which the lender is offering funds

- Loan Term - this is how long you have to pay the money back which you have borrowed.

One of the most cost effective ways to borrow money is to balance APR and a loan term. Many low APR offers are only available on long term products or are subject to many underwriting conditions. At first these seem like a good deal but when you calculate how much interest you are paying over the whole loan, especially once you have confirmed the true APR, you may find that it is actually better to take advantage of the fixed rate offered to you through the dealership.

Setting Your Budget

The best car loan is not just about finding the cheapest APR. You also need to make sure the product can work for you and this means setting your budget. Too many people get carried away and take out finance deals that they cannot really afford. You must never borrow more money than you can afford to repay out of your monthly income. This just puts a huge strain on your finances and makes it very difficult for you to meet your financial obligations. Here are a few tips for helping you to set your budget:

- Existing Repayments - look at your existing credit products including credit cards, store cards, personal loans and mortgages. Calculate how much you need to meet these repayments each month.

- Essential Bills - make a list of all your essential bills such as utilities, groceries and fuel.

- Extras - also make a list of any extras you spend on during the month such as gym memberships, meals out, clothing etc.

- Income - calculate exactly how much money you have coming in each month to fund your spending.

Once you have made a comprehensive list of all your incomings and outgoings you will be able to calculate how much you can afford to repay comfortably on your new car loan.

Deal Comparisons

One of the most effective ways to find the best car loan is to shop around and compare deals. If you don't have a lot of spare time for this then you can use an online comparison websites. These offer a quick way to compare estimated quotes. You will be able to put in how much money you want to borrow (and for how long) and search through suitable products.

It is important that you compare deals across the market before you make any decisions. If you already have personal loans or a mortgage then your current lender may be able to offer you a good deal to finance your new car. You may also find that local dealers can provide some very competitive rates. If you shop around you should find a finance option that is right for your needs and circumstances.

Finding the best car loan is about understanding your budget and shopping around for the best deals. You can use online comparison websites to quickly find the best loans to suit your needs.

Article Source: http://EzineArticles.com/?expert=Graham_Filmer

Article Source: http://EzineArticles.com/6482640

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