Geordie’s Story

I had a loan on a work ute that I had bought from a dealer using their finance without shopping around first.  I was after a quick and easy purchase.  Later I wanted to upgrade because it wasn’t big enough for the work I wanted to undertake.  I thought I could do a swap and borrow the extra with no problem.  I hadn’t understood the importance of interest rates and how they impacted how much I paid off the loan.  

Sharlene explained that the higher the rates, the more you pay back in the long run and how it impacted the balance left and that sometimes the loan can be worth more than the car.  This made me much wiser the second time around.  Car loans can vary from 3.99% to 12%, which meant a difference in repayment of $764 pm at 12% versus $592 pm at 4%.  Over the seven-year term, that meant an extra $14 448 in interest!!!