A balloon payment is a one-off lump sum that you might agree to pay your lender at the end of your car loan’s term. This one-off final payment will account for a large proportion of your car loan so your regular car loan repayments can be reduced as a result. It’s important to note - the balloon repayment option is only available if you get a fixed car loan, and will not be available for the variable car loan.

You can save yourself a lot of time and heartache if you get pre-approval for a loan before negotiating for a car. Also known as preliminary approval, pre-approval is an offer from the lender to lend you an agreed amount, subject to full approval. The period a pre-approval lasts and its terms are vary depending on the lender.

What are the benefits of using car loan brokers? There are a variety of benefits that come with using a car loan broker. Access a range of lenders. If you’re time-poor but still want the best deal available for your car needs, a car loan broker is able to engage with a variety of lenders and different institutions in order to get you what you need. Convenience. There are many institutions competing for your business at the same time instead of you individually meeting with one lender at a time. Save your credit file. Rather than applying with more than one lender, which will damage your credit score, working with a broker essentially lets you apply with multiple lenders through one application.

The time it take to receive an approval and settlement is dependent on a number of factors including the terms, vehicle type and the applicant. You can increase the speed of the application by forwarding requested information quickly.