Smooth Roads Ahead: Questions to Ask Before Financing Your Next Car

1. What is the total cost of the loan, including all fees and charges?

While we don't have direct access to comparison rates, our website does list them, though they may not be accurate as each customer's rate is different. We focus on providing you with your actual rate and a personalised quote. Your unique rate and repayments are determined by your credit file, the vehicle you choose, and the loan characteristics (such as the term).

Be aware of:

• Establishment or origination fees: An upfront cost to set up the loan.
• Monthly service fees: Ongoing charges for managing the loan.
• Late payment fees: Penalties for missed payments.
• Early repayment fees: Charges if you decide to pay off your loan sooner than expected. At Big Box Cars, we're proud to work with partners like Taurus Finance who often offer flexible options. Always confirm this!

2. Is the interest rate fixed or variable?

We only offer fixed interest rate loans. This means your interest rate and repayments remain the same throughout the loan term, offering predictability and peace of mind.

3. What are the available loan terms, and how do they impact my total repayment?

Loan terms typically range from 1 to 7 years. While a longer term might mean lower monthly repayments, you'll generally pay more interest over the life of the loan. A shorter term means higher monthly repayments, but less overall interest paid. Think about what you can comfortably afford each month without overextending yourself.

4. Do I need a deposit, and how does it affect the loan?

While no-deposit car loans are available, putting down a deposit can be beneficial. However, please note that deposits do NOT affect your interest rate. A larger deposit can:

• Reduce the total amount you need to borrow.
• Lower your monthly repayments.
• Help prevent you from owing more than the car is worth, especially as cars depreciate.

5. What are the eligibility requirements for the loan?

Lenders will assess your credit score, income, and financial history. Understanding these criteria beforehand can help you prepare. At Big Box Cars, we make it easy to get pre-approved with a quick online application, often within minutes, which can give you a clear idea of what you can borrow. Our pre-approval process is a "soft-touch" and will not affect your credit score until we submit it to the lender for final approval.

6. Can I make extra repayments without penalty?

This is a fantastic question! The ability to make additional payments without penalty can save you a significant amount in interest over the life of the loan. Ask about this flexibility.

7. What happens if I miss a payment or face financial hardship?

Understand the lender's policies regarding late payments, including any penalties or how it might affect your credit score. It's also wise to ask about options in case you experience unexpected financial difficulties.

8. Are there any "add-ons" being rolled into the finance?

Sometimes, things like extended warranties or paint protection can be added to your loan. While some of these might be beneficial, ensure you understand what they are, what they cover, and if you truly need them. We do not offer gap insurance here. Often, purchasing these separately can be more cost-effective.

9. What is my trade-in value, and how can it be used?

If you're trading in your current vehicle, ask for its valuation and how that amount can be applied to your new car purchase, whether as part of your deposit or to reduce the overall loan amount.