Make sure to read the lender’s documentation carefully so you understand how much you will be charged in interest and fees and any other terms and conditions that apply. Under this arrangement, you can lower your repayments but you’ll usually pay more for the loan overall.

Take care with car loans that offer ‘balloon payments’, which is when you make a lump sum repayment at the end of the loan term. Features – check whether there are any penalties for making additional repayments or paying off your loan early.Loan term – if you choose a longer loan term, you’ll usually get lower repayments but you’ll pay more interest in total.If you don’t make your repayments on time, you may be charged a late fee and your credit score could be negatively impacted. Repayments – you can usually make monthly, fortnightly or weekly repayments.Fees – common fees include application, annual, late payment, additional repayment and early repayment fees.You can get either a fixed interest rate (which stays the same) or a variable interest rate (which can change). Interest rates – the car loan interest rate will have a big impact on your repayments and the overall cost of the loan.Here are some factors to consider before you apply for a car loan:

Car loan payment calculator