Finding dream cars on finance is easy, but deciding the latter part is difficult. This latter part defines the state of choosing which easy car loan option is best suitable for your pocket. Not only you, but many new car buyers face the challenge of identifying these car finance jargons and understanding them. There are many terms in car financing that people fail to interpret correctly soon after which they realize that they’ve made a mistake. 

Before heading on with applying for car loans, it is urgent to do your research in the first place. No denying that experts will tell you the smallest of details about your contact, but if you already carry the knowledge on the table, decisions happen quickly and with utmost accuracy. Here are some of the misinterpreted loan terms.

Glossary of cars on finance terms

Balloon payment

A balloon payment is a lump sum amount that a borrower owns at the end of a loan term or lease contract. This amount needs to be paid after all regular monthly repayments. For instance, you’ve received cars on finance option with $10,000 but you only pay $6,000 over a year loan term, this makes your last payment count $4,000. Here, you’re deliberately repaying part of the principal with a lower monthly repayment option in exchange of owing the lender a lump sum when the term ends. 

Credit report

Credit report is mainly your history of your repayments and other credit-related factors. This credit history is available to many lending institutions giving them previous details about all your timely or late repayments and even the missed payments. This history remains available for many years and can significantly impact your credit score. 

Credit score

Easy car loan don't come easy when your credit score isn't good enough for the lending institutions. Your credit score, usually out of 1000 indicates your creditworthiness. The credit score is a compilation done by credit bureaus looking at history reports by past creditors such as banks and credit card providers. 

No Lock-In Contract

No lock-in contract is the agreement between the products or service provider where they don’t hold the borrower stiffly. This means that the borrowing persona has the liberty to switch between products and services. A no lock-in contract comes in handy when you’re in a need to switch depending on the needs at the moment. 

These were some of the common jargons that car buyers need to know before signing up for any cars on finance. Besides, there is a bundle of questions you need to ask the lender. No lenders are similar, each and every of them has distinctive pros and cons. So, don’t mind questioning these: 

• Can I repay more without any penalty? 
• Can I pay the car loan early without penalty? 
• What are the interest rates? 
• Do I get the choice to customize my repayment plan?
• What about additional or hidden fees and charges? 
• How much time will it take to get approval for an easy car loan? 

Make financing your dream vehicle a cakewalk 

Seems surely like a ‘dream’, but with Freedom Cars, you get to enjoy the freedom of driving your own vehicle. Say no to taxi fare, bus rides, asking for lifts or waiting for the metro to arrive. Even if you’re unemployed, bankrupt or receiving a Centrelink pension, with Freedom Cars financing cars becomes easy. No Lock in Contracts, no credit checks, 60 Minute approval and no balloon or payout figure are just a few of the benefits of driving your four-wheeler on the road. 

Source URL: https://www.freedomcars.com.au/