Tips and Advice

> Things to Compare

The car loan market is highly competitive and loan packages being offered by one company can vary in important ways from another. This means you have a lot of options and it’s a good idea to shop around before making your decision.

Searching on the Internet can give a quick overview oif what’s out there. Many individual lenders maintain websites, some of them featuring tables with figures that let you compare between different type of loan options. Searching for “loan guides” will reveal a wide range of loan companies that can be practical alternatives to traditional lending institutions like banks and building societies.

Still, you should also find out from your own bank what they have to offer. If you happen to have a mortgage already with your bank, for example, you might be able to negotiate a good deal on a car loan from them.

The key to comparing car loans is to always look for the APR. The APR will vary between lenders and will give you a good idea of how much you can expect to actually pay.

> Consider a Payment Protection Plan

A personal payment protection plan is an insurance policy which will cover your car loan repayments in case of an injury, illness or other circumstance that renders you unable to earn income to pay your loan.

The protection plan covers almost all forms of employment. In case you’re self-employed you can buy a policy that covers you in the event of bankruptcy. Some companies (but not all) require you to undergo a medical exam.

Some policies may set a period at the beginning of the plan for which you’re not covered. This may be as much as six months depending on the policy provider. Make sure you know the terms and conditions before you finalize everything.