What financial pitfalls catch people out?
There are a number of decisions people need to make before applying for a secured personal loan or other vehicle finance - and it's not just what you'll do with the money that needs to be considered.
As an experienced finance broker, we see people make a lot of mistakes when they're trying to secure finance, most of which are avoidable with a bit of extra know how. To ensure you're prepared to apply for a new car or boat loan, here's what you need to keep in mind.
Finance is not a one-size-fits-all solution
Where banks and some other institutions may assume that the same finance solution is right for everybody, AAA Finance is aware this isn't the case.
Because of this, we ensure that our clients receive a loan and repayments schedule that is tailored to fit their needs. Whether it's a business or personal loan, there's a way ensure it's the perfect fit for anyone who comes to us for help.
Only borrow what you need
Commonly, this is a pitfall AAA Finance sees younger borrowers fall into. While there is often the temptation to borrow a little extra to buy a flasher car or motorbike, it's usually better to borrow within your means.
After all, finance is meant to help. If you can't meet the repayments, you're harming your financial stability.
Don't redraw on your mortgage
On the other hand, this is a pitfall we often see older borrowers stumble across. The appeal to redrawing from a mortgage to secure funding for a car, boat or truck loan is that the interest rates are lower.
However, these are lower because the length of the time spent repaying these loans is so long. Because they're tied to a mortgage, this can be 20 years or more, meaning borrowers actually end up paying more once the loan is repaid.
To discover a loan solution that is right for you, call AAA Finance today.
About the author
Peter Watman has extensive finance and automotive experience having worked in both industries for over 30 years. Peter founded AAA Finance and Insurance in 2012. He leads an experienced team that provides quick and easy finance solutions along with exceptional customer service.