If you live in Melbourne, and you’re looking for a new car, then you are fortunate enough to have a multitude of choices. Choices of car sellers, and lenders for your car finance. However, finding the right car finance can be quite mind boggling. Here are a few tips to help simplify the process.
- Get advice
Before you even begin visiting car lots, get advice from the right person. Someone who has your best interests in mind. Talk to your accountant or a financial advisor. They can help you work out how much you can realistically afford to borrow and how much you can pay in repayments. If you need to find out more about car finance this website will help you to get a better understanding.
- Research lenders
The internet makes it so easy now to research and compare car loans. Compare interest rates. Banks and credit unions tend to have lower interest rates.
- Compare different types of car loans
Financial institutions offer different types of car loans. For example, some lenders offer secured loans, where your new car is used for security. A novated lease is also another popular option, and this website has some excellent novated car lease info that explains how you can benefit from it. If you happen to default on your loan, the lender will then sell the car to pay off the loan. These loans generally have a fixed interest rate, and it is often lower than an unsecured car loan.
However, you may not be able to make extra payments without incurring a penalty. Unsecured loans, on the other hand, do not use your new car as security, and as such, pose a higher risk to the lender, so the interest rate is higher than a secured loan. You can also get just a personal loan, which can be used for anything from travel, furniture, or a car. These loans generally have a longer loan period, so repayments are lower. For example, many car loans are for five years, whereas a personal loan can be spread out over seven years.
- Get some quotes
When you have decided which car finance option is right for you, get quotes from various lenders, such as banks, other financial institutions and car dealers. Sales people at car dealerships can be pushy, so hold your ground and don’t settle for a deal that’s not suitable for you. A good car lease calculator will help you make calculations. This car lease calculator is one of the best available online in Australia.
- Submit your application
Once you have found the right loan option for you, then it’s time to submit your application. The lender will then have a look at your supporting documents, do a credit check and assess your ability to make the repayments. If your loan is approved, then it’s on to the next step.
- Buy your car!
Once you know you how much you have to spend you can negotiate prices with sellers, whether private sellers or car dealerships. Try not to get emotional, keep a cool head, and get the best deal for you.
So the next time you are looking for car financing, remember these simple tips. Then finding the right car loan will be practically stress-free.