Car Loans

Select & Switch offer comparisons and loan applications for car loans. The process can be faster and less time-consuming than obtaining a car loan from a bank, other finance companies or a dealership. Comparing loans through our providers allows you to get the best deal on offer at the time.

You don’t need a deposit to get a car loan, but it can help with the application process and lower your repayments. There are lenders who require a 10-20% deposit and others who will let you finance the entire value of the car.

Rates fluctuate frequently, so keep an eye on them before you apply for a loan. Consider both the comparison rate and the interest rate. With the comparison rate, you can get a good idea of how much your loan will cost and what your monthly payments are going to be.

Depending on whether you’re using the car for business or personal use, lenders may offer different interest rates. Consult your lender or accountant if you plan to use the vehicle for both purposes. Interest rates may also be affected by your credit score and income.

When you have made your regular repayments on your loan, a balloon payment is due at the end of your period. You may opt to make a balloon payment. This reduces your regular monthly payments in exchange for paying a lump sum to the lender at the end of your loan.

Over the course of the loan, a balloon payment will lower your repayments.

A balloon payment can be costly, so make sure you budget for it ahead of time. To pay off the lump sum and interest, you don’t want to take out another loan.

Generally, car loans are secured, which means your car serves as security. Your car can be repossessed and sold if you fail to pay back your loan on time.

Alternatively, you may be able to get an unsecured car loan without putting up your car as collateral. Your borrowing power will be limited and your interest rate will be higher. Loans without collateral are usually reserved for used cars with much lower loan values.

Comparison rates include both interest rates and extra fees in one figure. A monthly service fee, an application fee, or a default fee may be included in this category.

Ensure you compare the same loan amount and term when shopping around and comparing rates; otherwise, the rates will be skewed.

The monthly account fee for a two-year loan, for instance, may be $5 per month for 24 months totalling $120. At the same interest rate, the monthly fees for a four-year loan would be $240.

Feel free to reach out if you need assistance with comparison rates. You can count on our expert team to assist you throughout the entire process

Getting a better deal on a car loan is just like refinancing a home loan. If you want lower monthly payments or additional flexibility, refinancing can be beneficial.

Refinancing is usually only considered if you are meeting your current car loan payments. It is much more likely that you will be approved for a new loan if you do not miss payments.

With a refinance, you could:

• Make adjustments to the loan amount.
• Reducing your monthly payments.
• Variable interest rates are lower.
• Invest in a fixed rate mortgage.
• Get your loan paid off faster by reducing the term.
• Reduce your repayments by extending your loan term.
• Redraw facilities and other new features are available.

Ensure that you are aware of any early exit fees that may apply to your current loan contract. Savings should not outweigh fees. The remaining balance of your old loan is paid off by the new lender when you refinance a car loan. Close your old account to prevent any interest or fees from being charged.

This is dependent on the lender as well as your financial situation. The approval process can be fairly quick if you have a good credit score.

Our team at Selection & Switch understand that time is of the essence when it comes to securing new cars and financing them. So, please don’t hesitate to reach out with any questions you may have.

Using Select & Switch to compare car loans won’t affect your credit score. Soft credit checks (sometimes called soft inquiries) are part of the initial quotes we present to you. Preapproval tools or background checks are often used by lenders.

Your credit report will show the soft check, but your credit score will not be affected. In order to prevent lenders on our panel from declining your application, we run soft checks.

Select & Switch will conduct a hard inquiry when you apply for a car loan. When you apply for a loan, a lender will check your credit report. Your credit score will be affected by hard inquiries.