Picking A Loan Is Like Picking A Car

 

Hang On What?

Yes thats right. if we break down the process of selection, there really isn’t all that much difference in a loan product, or any product for that matter.

So we’re crazy right? Well we are taking on the Marky Mark and the Yellow Brick Crew………So maybe theres some truth there. But lets break this down and look at some facts when it comes to having money lent to you.

This Will Most Likely Be Your Biggest Fincial Decision…EVER!

Yes this is true for pretty much everyone, me included. But! that decision is made in your own time, generally with friends,family or trusted advisor. The loan is just to service this decision and its done after the fact.

Its Safer With A Major

Hmm this kinda reminds of all of those stories about old people not trusting banks & burying money in the back yard. (Yes it’s a real thing, its how a mate of mine inheritated some money)

The thing is the risk isn’t on your end with the loan product, its on the lenders end. So if they willing to hand over the money with good terms and they go bust, you will still have your loan and house.

So What Does All This Mean?

We’ll lets start comparing this to a car and how we came up with this statement. When buying a car you make the decision to buy a car well away from the dealership floor. You may see other cars driving around, you may have had a friend talk about their cars features, then you decide that you may want to start looking for a new car.

So you shop. Lets say for a holden commodore, you go to a number of dealers all selling the same car with the features you want and then you start comparing prices. Out of 5 dealers, two come back with prices you would expect to see with a BMW badge. Not a commodore. (no offense)

Then the remaining three all have very competative prices and you narrow it down and think hmmmmm these are the exact same product why would I pay extra? Exactly! Typically you would then look for how well they service their customers. After this you find that two have terrible ratings and the other one has above average. Then you pick the one with the best cost and service out of the selection.

Now Loans

Loans are just a product like anything else you buy. In this case the loan amount you want is that holden commodore and all that matters is finding that dealer that will sell you that car for the lowest cost with the best service. Loans are not different, so don’t be fooled by rebadged loans that are selling at BMW prices, but are really commodores underneath.

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