Help! Can I make the repayments on a car loan?

Want a used car but not sure if you can afford the car loan repayments? A car loan is a significant financial responsibility and both your car loan provider and your broker want to know that you can pay for your car loan repayments.
So how can you be sure you can pay for your car loan repayments?
Know yourself… …your financial self, that is. Write down all your income and all your expenses. You will need to put together a list for your car loan application anyway. Ask yourself whether you really have enough cashflow to cover a car loan repayment? Perhaps there are some doodads you can cut to make way for a car loan repayment. For example just cutting pay TV, a magazine subscription or eating out might be enough to cover a car loan repayment.
Try to get the lowest interest rate
Car loan interest rates vary, just as mortgage rates do. Shop around for the best car loan rate. Try to use a secured car loan as often this means cheaper rates. A car loan broker can help find the best car loan interest rate for your individual circumstances.
Be sure you understand the car loan’s fees and charges
Find out if your car loan has other charges other than the interest rate. Are there fees for repaying the car loan early for example?
Don’t just take the car loan offered by the dealer
Car dealers offer car loans so you can easily purchase the car “on the spot” enabling them to close the deal. But car loans are not their primary business. A better alternative is a car loan broker who can find the best car loan for your personal circumstances. Dealer car loans might be easy, but you may end up with an expensive car loan with inflexible terms.
Don’t use a credit card as a car loan
There is an old adage in accounting circles that you fund long term assets with long term debt. A credit card is best used for short term cash shortages to make use of the interest-free period to avoid their high interest rate. To put such a large purchase as a car on a credit card means you will pay high rates for as long as it takes for you to repay the debt. A car loan offers a much lower interest rate, so it will be more affordable over the life of the car loan.
Be honest in your car loan application
One of the biggest mistakes car loan applicants can make is to overstate their income or understate their expenses. If you really can’t afford a car loan, it is better for all parties for you to be honest upfront rather than get into nasty financial, and possibly legal trouble when you can’t make your car loan repayments. A better solution could be to take a smaller car loan and buy a slightly older car or a smaller car.
If you are still unsure whether you can afford a car loan, talk to a car loan broker. A reputable company such as 360 Financial Services offers free car loan advice and can help find you the right car loan product that suits your financial situation. Contact one of their trained consultants today.

Best car loans. Visit 360 Financial or direct at car loans