So you want to buy a new car in Sweden but your budget is a bit limited. It goes without saying that there’s no point taking out a car loan if you can’t afford it. Having said that, finding a cheap car loan can make buying a car far more affordable for you. Fortunately, there are a number of things you can do to lower your car loan’s costs. Here are several suggestions:
Consider Loans From Credit Unions
Here’s something that many people take for granted. Credit Unions can offer lower interest rates on their car loans because Credit Unions operates as non-profit institutions owned by members. And since only members can get a loan, you—as member—can get lower interest rates.
Compare Rates By Using a Car Loan Calculator
Once you’ve figured out your budget. It’s important to do your research and consider a wide range of car loans. You can do this by using our car loan calculator to compare hundreds of loan products from a wide variety of lenders.
Be Ready With a Down Payment
Your initial down payment greatly influences the interest you’ll have to pay on your loan. Furthermore, by making a substantial down payment you can also receive access to zero interest finance options from some dealers.
Look at the bigger picture
While Tip#3 is important to consider, don’t be fixated on lower monthly repayments or down payments, and look at the bigger picture instead. The total cost of the loan is more important because this is where you can really save. Extending your repayment term to more than five years for lower monthly payments will result in you having an upside-down loan; where the total cost of the loan is greater than the cost of the car itself.
Consider trade-registered vehicles
Trade-registered vehicles are pre-registered vehicles originally owned by a company that buys them in bulk and gets a large discount (as much as 30 per cent.) If you buy a trade-registered vehicle, the discount is passed on to you. You may be the second registered owner, but you get an almost-brand new vehicle with only a few miles on its odometer at a second-hand price.
Do your research
The only way to find a billigaste billån in Sweden is to research and compare several options to learn which lender has the best features and price. You also need to find the right car for you, and that involves research too. You have to know what’s available to you out there.
Choose flexible repayment terms
Look for a loan that gives you the option to make extra payments, or even pay off the loan completely without any penalties. Take note of the wording used in your contract—the lender won’t use the term “penalties” so learn to read between the lines.
Apply for the loan first
Did you know that you can save as much as half of the money you’d pay in interest if you apply for the car loan before going to the dealer? If you do, you can also benefit from a rebate on the vehicle.
Think about leasing
Have you ever considered leasing instead? If you have poor credit, leasing is actually a good alternative. It can actually be cheaper because you won’t have to spend on repairs and servicing.