Local New Car Dealers in Ballarat East VIC

How to choose car financing before you seal that new car deal

Buying a new car is a huge expense but finding the best financing option that works for you can save you money. Before you go to a car dealership near you, it’s worth taking note of a few things.

• Choose the right car financing – Cash is the cheapest avenue in the long run while loan and car dealership offers may accrue interest. Line of credits require you to have a huge limit. Lease requires you to pay monthly for a lower price but in the end the car won’t be yours.
• Check your payment details – For loans, make sure to check the annual interest rates and the payment duration, not just the monthly payments.
• Loans and Leases – after paying off the loan you’ll own the car, while after the lease period you own nothing. Leases may have lower payments, but it’ll only make sense if you’re planning to drive a different car every few years.
• Spend within your means – It is recommended that you spend no more than 12 to 15 percent of your after tax annual income.
  Short-term vs long-term loans – longer terms lower your monthly payments, but it lures you to spend more than you should.
• Down payments – pay the biggest amount possible because only the remaining balance will be subjected to interest.

Already decided on the best financing option for you? Browse cars for sale near you in our directory. Ask the dealerships if they have special offers and discounts.