How To Avoid Overpaying For Your Car Loan

These tips will help you avoid getting a costly car loan

1. Get your loan pre-approved

To get clarity on what you can afford, get the car loan amount pre-approved from your lender or car dealer prior to looking out for a new vehicle.

2. Don’t Prolong The Loan Term

Just because you are getting low monthly or fortnightly repayments, don’t prolong the term of your loan as this will also increase your interest substantially in the long term. You should be comfortable with your repayments, but don’t get too comfortable.

3, Put A Down payment

Putting a down payment lowers your monthly repayments and overall interest for the complete loan tenure. If you can afford it, put a substantial amount of down payment.