Lifestyle / March 22nd 2021

Buying Your First Car? Learn How to Get a Car Loan Here

A person holding up puzzle pieces with the words “personal loan” on them.

Buying a car is a pricey decision, that requires research, planning, and most importantly, financing. If you’re planning to buy your first car, we recommend learning what your financing options are first. Will you pay upfront? Do you apply for a car loan with your dealership? Or will you borrow money online? We know decision-making can be stressful, but it doesn’t have to be with the help of a trusted car loan. Read on to learn how you can get a car loan so you finally hit the road with confidence.

Determine your budget

Even if you’re getting a car loan to fund your new vehicle purchase, setting a budget is still important. You need to think ahead about monthly repayments, and you’ll want to make sure you can afford to pay them while still having a budget for maintenance costs, insurance, servicing, and taxes. These fees can add up quickly when you purchase a new car, so budget accordingly.

Know your credit options

As a first-time car buyer, you may be faced with the challenge of having little to no credit history. It’s wise to compare rates from different lenders—like a bank, a finance company, or a dealership—to get the best deal possible. However, if you do not have a credit history yet, or your credit score needs work, you can try applying for secured car loans. At Moneyshop, we can help you obtain secured car loans that use the car itself as collateral. This means that the car can be sold in the event that your loan defaults. In some cases, this can benefit you, as it can improve the fee structure of your loan, even without a good credit score.

Opt for a short-term car loan

If your financial situation permits, you could apply for a short term car loan. While a longer financing period is often appealing due to lower monthly repayments, it can cost you more in the long run via interest. When you get a car loan, it’s better to take financing of no more than 36 months to save you money in the long haul.

Refinance existing car loan

Purchasing a car is an exciting process that you may have rushed into, making financial decisions in the past that aren’t favourable. But don’t worry! When you work with MoneyShop, you can apply to refinance an existing car loan that you may have taken out with a dealership. You may opt for this when you want to alter your loan terms, or if you find that are our rates and fee structures are better.

Apply for reliable car finance with MoneyShop!

Buying your first car can be an intimidating process. And at MoneyShop, we believe that first-time car buyers should have the same opportunities as other car buyers when it comes to a stress-free loan application process. When you apply with us, you will find that our loan application process is fast, easy, and ethical. We help you get your new car with flexible finance options—hit the road today and apply online at MoneyShop!

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