One of the easiest and quickest ways to get behind the wheel of a new Mitsubishi SUV is with car finance. Historically low interest rates are going to be around for some time, so arming yourself with information and being smart about the way you borrow can really make a loan work for you.
Most car loans range from one to seven years. You can choose the term of your loan, and whether you make weekly, fortnightly or monthly repayments. Some loans also offer the flexibility to make extra payments so you pay it off sooner and reduce the amount of interest payable.
Speaking of interest, you can also choose between fixed or variable. A fixed rate gives you the peace of mind and certainty of knowing exactly what your repayments will be. A variable rate moves with market forces and lenders may push them up or down at any time. Most people prefer fixed rates because they’re so much easier to budget for.
You can also opt for a secured or unsecured loan. A secured loan uses the car your purchasing as security. Because there’s less risk for the lender, they’ll offer you a lower interest rate. However if you don’t make loan repayments, they’re entitled to repossess your vehicle and sell the asset to recoup costs.
On the other hand, an unsecured loan relies on your creditworthiness alone. If you have a great credit history or credit score you may wish to explore this option. But since the lender has no collateral on the funds borrowed, an unsecured loan is usually hitched to a higher interest rate.
A few formalities come with all forms of finance. So whether you’re applying for funds at a bank or your preferred dealership, be prepared with these documents: