CANNEX releases ratings and tips on Car loan
A succession of fees and penalties tied to car loans can slow down the process of determining the right loan for you. Leading research and ratings group, CANNEX evaluated 336 car loans, plus 68 secured and 116 unsecured personal loan products and highlights fees to look out for in its personal loan star ratings report.
According to CANNEX, right from the beginning, your car loan could cost you a hefty application or establishment fee of up to $200. 90% of bank variable rate personal loans have some sort of application fee attached, compared to under 68% of credit union loans. Also application or establishment fees, there are documentation, on-going and encumbrance fees to look out for, as these all add to the cost of finance.
Penalty fees can be another obstacle on the road to paying off a car loan.
If you miss paying your loan, even by one day, you could be slugged up to $50 on a new car loan or $35 on a used car loan. Do that a couple of times a year and all of a sudden your loan repayments are up there with the cost of petrol.
Traditionally the domain of credit unions and building societies, personal and car loans are competitive but, according to CANNEX, many fees and penalties can be avoided altogether.
Fasten your seatbelts and shop around if you want to find the ideal deal with no surprises down the track.
One last warning to consumers from CANNEX concerns the early repayment penalty of $200.
If you intend paying out your car loan earlier than the contracted time, make sure you do not sign up to a loan with an early repayment penalty, as the unexpected sting could lead to a case of car loan rage.
Consumers can download the CANNEX personal loan star ratings report from CANNEX website.
25-Jun-2007