A car mortgage is a convenient way to enable you to own a car if you are unable to settle the selling price. Your lender agrees to land you money, which you are supposed to repay in installments together with the accrued interest over a certain period. Below are some vital things to consider when looking to get a car mortgage:
Car loan rate
Interest rates are a huge factor of consideration on your car loan as they will dictate the amount to repay. It would help if you thus considered this factor before bowing for a contact. Get the loan that suits you well.
Fees and charges
Alongside the interest rates, you will get charged and fees, such as the late payment fee, discharge fee, and the establishment fee. Various lenders have different rates, and thus you should check on this too.
Car loan repayments
Always ensure that you can repay your car loan with ease within the stipulated period, get to calculate your monthly repayments using your car loan calculator.
Credit score
Before the release of a car mortgage, your lender will scrutinize your repayment profile to determine your creditworthiness. A blow-risk profile attracts low-interest rates or rejection, while a high-risk profile attracts high-interest rates. It may be advisable to first polish your credit score before getting a mortgage for your car.
Loan term
You can determine how long you will take to repay your car loan. This may take one year, three years, and the most extended period being five years. A longer repayment period calls for a higher interest sum. It is thus advisable to settle for a short loan repayment period as this will save you some considerable amount of money. Do the maths to get that repayment [period that is achievable to you and that which will not strain you!
