A sponsored post for NRMA
With summer in the air, the great Australian road trip is the best way to see our region and beyond. Will it be fish and chips on the South Coast? Or a hike through the peaceful Snowy Mountains?
Either way, you’ll need a reliable set of wheels, and, if you are in the market to upgrade or buy your first car, the NRMA has some great tools to execute your ideal summer road trip.
Step one – Understand How Car Finance Works & Decide if a New or Used Car is Right for You
Car finance is much like a home loan – the car is used as security for the loan. You make regular repayments and interest is added to the amount owing until the loan is fully paid off. Because the loan is secured, the interest rates are generally lower than that for unsecured personal loans.
Ideally, you’ll want a car loan that offers flexibility and a low competitive rate, and is easy to apply for. The NRMA has car finance and this is a good place to start understanding what interest rate is available to make your dream car a reality.
New Vs Used Car – Which do you choose? Well, we’ve found that it all depends on what you will be using the car for and what your budget is. A new car should (generally speaking) require less maintenance than a used one, however, depending on the brand of car you choose, parts could prove quite costly.
Step Two – Work Out How Much You Can Spend & Borrow
Now that you have decided on which type of car you will be buying, you need to work out your budget. Fixed expenses like rent and bills should come off your income first. You should also take into account general living expenses like groceries, ‘treats’ and shopping. The leftovers should cover your car loan repayments, with extra money for incidentals.
It is important that you work out the term of the loan – how long do you think it will take you to pay off your loan? And what is the likelihood that your circumstances will change during the life of the loan?
The NRMA car loan calculator can help you work out repayments over different terms as well as what would happen to these repayments if interest rates were to change.
Step Three – Start Planning Your Summer Road Trip!
Now that you have the car, you need to enjoy it! Will it be a trip to the beautiful South Coast to enjoy your new purchase, or a road trip to experience the views within the Snowy Mountains?