VEHICLE FINANCE BROKERS WORKING
THROUGHOUT AUSTRALIA
Your Finance Group’s vehicle finance brokers serve customers across Australia. Feel free to contact our team today to find out more about what we do and see how we can help you.
ABOUT CAR/VEHICLE LOANS
We specialise in car finance and clients can rely on our experts to help them get favourable rates and flexible payment plans. For many people, owning a dependable car has become a necessity. But over time, there is a big price to pay.
The automobile is one of the greatest expenditures people make, second only to a home.
Importantly, you should never let your enthusiasm for purchasing a car prevent you from making wise financial choices.
Car loans might be difficult to evaluate just on the basis of interest rate, unlike home loans. There are fixed and variable tariffs. Some loans include monthly fees, while others don’t. Buyers should concentrate on the quantity of repayments multiplied by the number of repayments necessary in order to assess vehicle loans’ true costs.
Plus add the last balloon payment, if any. Be careful since a loan product with a little higher rate can also have fewer fees and cost less over the course of the loan.
Buyers must keep in mind that regular automobiles (as opposed to rare collectibles) lose value over time and are not an investment, so they should never finance a vehicle for a longer period of time than is necessary to utilise it as intended.
In addition to the initial purchase price, there are several other expenditures that need to be considered, such as loan interest and fees, registration fees, insurance costs, continuous fuel costs and maintenance costs.
Buyers should think about how much the automobile will cost overall, including the cost of the initial purchase, any loan payments, insurance and registration fees, maintenance costs and gasoline.
Beware, getting the wrong car loan at the start can be financially damaging to buyers in the long term.
A car loan is a type of personal loan that car buyers use to get the money they need to buy a car for their own use or for their company. When the loan is paid off, the consumer usually keeps full ownership of the car that was used as collateral for the loan.
The lender may seize the car as payment for any unpaid loan balances and take legal action against the borrower if the borrower doesn’t make the agreed-upon repayments.
Fixed or variable interest rates are available for auto loans. The two pricing options both have benefits and drawbacks. A buyer must make sure they select a financial arrangement that has a low rate and minimal costs because the cost of interest and loan fees on a loan may be fairly high.
Always be mindful of the costs and fees related to the auto loan under consideration.
Pay close attention to any loan establishment fees levied by the lender and, in particular, the person handling the loan arrangements. Sometimes, for the same transaction, these institution fees might range from $350 to $1,250 or even more!
Before a buyer decides on a vehicle, they need to determine what they can afford in car loan repayments. If they determine they can afford $20,000, they need to stick to that limit and not be pressured by anyone else to go higher, this included the car salesman.
Buyers will need to prepare a budget ahead of applying for a loan. This will be a requirement of any lender.
TYPES OF CAR LOANS
There are several different kinds of auto loans. First, there are auto loans, which often have varying interest rates and fees for both new and used automobiles. These loans range from secured to unsecured options. Additionally, although some auto loans have a variable rate, others have a fixed rate.
Then there are different types of product in each of the above categories such as Hire Purchase, Leases and Personal Loans. Some of these products have what are known as ‘Balloon’ options, which require a sizable portion of the loan (between 30% and 50% of the car’s value) to be paid in one lump sum at the conclusion of the loan period. Avoid ‘Balloon’ possibilities and carefully consider the long-term financial effects of a delayed payback.
If you are confused, get in touch with us so that our staff can aid you in getting a bargain that meets your needs.
WHAT'S INVOLVED - VEHICLE LOANS
Importantly the primary purpose of the vehicle being purchased needs to be established, either:
- Personal use
- Business use
To establish how much they can afford in repayments, buyers will need to create an income and spending budget. Despite the fact that many households view budgets as a burden, Australian federal law now mandates that all lenders evaluate a borrower’s budget and compare it to the loan repayments. Buyers should never take the chance of letting a third party construct the budget since most frequently, their estimates will be inaccurate.
Prior to submitting a loan application, buyers should develop a budget for the lender and, if necessary, obtain assistance from the ASIC website’s Budget Planner.
Lenders frequently demand security in exchange for a loan, so in the event that the buyer defaults on the loan repayment, the automobile used as security may be impounded and auctioned to satisfy the debt.
An unsecured personal loan may occasionally be approved by the lender owing to the borrower’s steady financial and job situation, but beware of the interest expenses as unsecured loans have higher interest rates than secured loans.
Special remark: Lenders occasionally won’t provide a borrower a vehicle loan because they won’t accept a car purchased privately as collateral. Any customer thinking about financing their own automobile purchase should get in touch with us in advance to explore their options.
With most lenders they will require copies of buyers documents to support the loan application, including, but not limited to the following:
- Copies of identity documents (passport and driver’s license)
- Copies of bank statements showing balances
- Copies of last 2 pay slips
- Copy of the purchase contract.
Note, many lenders nowadays will make contact with a buyer’s employer to confirm the employee and their salary or wage levels.
These days, all lenders evaluate customers’ credit histories to look at their prior borrowing behaviour.
Any mentioned defaults may result in an immediate decline. Before buying any car, get in touch with us to address your past financial issues if you are aware of them.
TYPES OF CAR LOANS
There are several different kinds of auto loans. First, there are auto loans, which often have varying interest rates and fees for both new and used automobiles. These loans range from secured to unsecured options. Additionally, although some auto loans have a variable rate, others have a fixed rate.
Then there are different types of product in each of the above categories such as Hire Purchase, Leases and Personal Loans. Some of these products have what are known as ‘Balloon’ options, which require a sizable portion of the loan (between 30% and 50% of the car’s value) to be paid in one lump sum at the conclusion of the loan period. Avoid ‘Balloon’ possibilities and carefully consider the long-term financial effects of a delayed payback.
Get in touch with our experienced team to help you navigate through your vehicle loan options.