Interest Free isn’t Always Free:
One of the most attractive offers dealerships advertise is to interest free credit. The problem is that the free period is limited and you may be stuck with a higher interest rate for the remainder of the loan. Additionally, many of these packages have fees such as early repayment charges written into the terms. This means that if you choose to switch to another form of car finance, you could find that the repayment balance is far higher than you expected.
Watch for Hidden Extras:
Another trick of dodgy car dealers is to add in a whole host of the hidden extras to the finance deal. For example, the registration and stamp duty may total a few hundred dollars on your new car but if this is added automatically to your car finance, you could be paying five, ten or even fifteen percent on that sum for years and years. The dealership should detail all of the fees and charges added into your finance agreement, so you can make an informed decision.
Tailoring Your Monthly Repayment:
While tailoring your monthly repayment may seem like a great thing, if the dealership simply increases the term of the loan this can be a costly mistake. One of the most common mistakes about car finance Perth drivers can make is telling the dealership what they want to pay out each month. Dodgy dealers will simply increase the loan term to match this figure and you could end up paying over the odds in interest payments throughout the loan term. It is a much better idea to compare loan deals and choose one which is actually more attractive rather than simply appears so.
Hidden Fees and Charges:
Another trick of dodgy dealers is to not detail any fees and charges on their car loans. Australia based lenders should provide a listing of any fees or charges with any loan quote, but when you are sat in the showroom with a mountain of sales paperwork, it can be easy for the sales team to gloss over these details. It is far better to choose a reputable dealer who will have clear and transparent details of all the loan terms and conditions.
