5 Factors that Affect Car Loan Interest Rates in Australia
Are you planning to buy a car on loan in Melbourne? If yes, then for applying car loan, look for a finance company that provides car loan at lower interest rates. Even, these days there are many lenders offering zero deposit, car finance in Australia. To get the loan at lower interest rates, you should consider some the factors that affects the interest rates including-
- Credit Score– When it comes to apply any type of car loans in Melbourne, the most influential factor is credit score in determining the interest rates. Good credit score would give you rates that are lower as compared to someone with poor credit score. Almost all the lenders always take a peak interest in your credit history.
- Loan Term- Longer the payback period, higher will be the interest rate. Thus, loan duration is an important factor in determining the interest rate. Thus, apply for shorter loan payback period, if you want to get loan at lower interest rates.
- Employment Records- More stable the job is, lesser will be the interest rate. The lenders are more willing to give loans to a person with full-time stable job than to a person with a part-time unstable job.
- Savings Amount- People with an amount saved in the account are mostly preferred by lenders for giving loan at lower interest rates. Lenders are more likely to give loans to people who own their houses. These things make the lenders consider people with savings account as consistent and stable financially.
- Vehicle Age- Interest rates depends on whether the car is a new one or a pre-owned car. The interest rates of brand new car will be comparatively lower than a used car.
You must consider the above factors while applying any type of car loan including bad credit car loans in Australia.