Things to Consider when Getting ING Car Loans
A car is a major investment. This is why, whether you’re buying one for the first time or want to replace an old one, you want to make the right decisions. This doesn’t just involve choosing the right car but choosing the right manner in which you are going to have it financed. Very few people can really afford to walk into a dealership and drive away with their car of choice using only cash to make the purchase. Most would need to get the purchase financed.
If you’re considering getting ING car loans or even NAB car loans to cover the purchase, it helps to know ahead of time what products are available for you. A closer look at the different car loan options on their roster is always a great first step. In this case, you’ll need to decide between a new car loan and a used car financing.
New car loan
As the name implies, this is a loan intended for those people that want to purchase a brand new car. This vehicle loan from ING makes it the perfect financing tool for those who have been wanting to buy the car of their dreams. Simple and fast, borrowers will love how fast the transaction process is and
how easily they can get the repayment schedule customized. The competitive interest rates involved will be ideal for those planning on getting a brand new car. The loan doesn’t require a guarantor as well.
ING new car loan features:
- Applicable for brand new vehicles or used cars that don’t exceed 8 years old.
- Term maturity can range between 3 and 60 months.
- Borrowers will not be required to secure life and accident insurance.
- Allocation fee for the loan is at 0.5% or lower of the principal amount.
- Only the vehicle you are buying will be pledged as loan collateral.
- Guarantor not required.
Used car loan
If you’re planning on getting a used car, the right financing option is essential. ING offers used car financing with some of the most competitive interest rates available today. The flexible payment options and quick approval process makes it highly convenient for any borrower. You also get to determine what your preferred repayment amount is as well as your due date.
ING used car loan features:
- Applicable for used cards not more than 8 years old.
- Up to 60 months loan term.
- Interest rate for 3 to 6 months is only at 0.99% and for 9 to 48 months is at 1.39%.
- Allocation fee is 0.5% of the principal borrowed amount.
- No guarantor needed.
- Individual life and accident insurance is not a requirement to avail of the loan.
- Borrows can take advantage of a 3-month postponement or equal installments.
- Only the car being purchased will be used as loan collateral.
Once you have determined that you are qualified for the car loan you’re interested in, it’s important to remember that there are steps you need to take before heading to the dealership. You want to make the most of the financing option you are availing of. So, here are some things you need to remember before you send in your application form.
ING car loans explained
One of the most important things that people taking out ING car loans should remember is to borrow only what they can afford to pay back. Just because you are qualified to take out a bigger loan than what you intend for the car you are interested in doesn’t mean you should accept it. People need to understand that the cost of a loan is affected by the amount of the loan itself. Needless to say, the bigger the loan amount is the higher the loan costs will be. It is for this reason that borrowers are encouraged to pay at least 20% of the price of the vehicle they want as downpayment or more if they can afford it. This chips off a significant amount from what you need to borrow and hence, will lead to lower interest. Choosing a shorter loan term, albeit with bigger repayments, will also help keep the borrowing costs down.
A clean credit slate is always ideal
While there are lenders that wouldn’t mind seeing a few bumps in your track record as a borrower, there are those that may be very particular of how well or not you have managed past borrowing. It wouldn’t hurt to get your credit history fixed and patched first before you start shopping around for dealerships that offer your preferred car. It wouldn’t hurt to get any outstanding bill paid off when you have plans of shopping around for a good car loan.
Stick to what you can afford
Always consider what you can afford to pay back and not what you are approved to borrow. People usually get excited when they find that they are eligible to borrow more than what they originally intended to, that they just go for it without really thinking far enough ahead of the repayments they will have to make. It’s not really the approved amount you should be focused on but your capacity to pay back what you’re borrowing. Stick to what you can afford and avoid biting off more than what you can chew.
Don’t send out too many applications
Lenders will usually not look at you in a good light when they see that you have been fielding loan applications left and right. Most people get tempted to apply for a loan at several places in the hopes of getting the best deal. Unfortunately, the lenders might get the wrong message when you do— they might construe this as you being desperate and will likely only result in rejection.
Always take the time to get some due diligence on all the potential loan options available for you. There are tons of information you can dig up online that should help you make the right decisions. You’ll be surprised at how much you can save if you just take the time to look around and compare choices before finally making a decision.
Be realistic with your interest rate expectations
In the course of applying for a car loan, you might encounter those instances when the rates advertised by lenders aren’t the same numbers you are offered. This happens. In most cases, lenders are only required to offer their advertised rate to a certain percentage of their applicants. In addition, interest rates change all the time, so always temper your expectations when shopping for the best car loans around.