When you’re planning to buy a new car, it’s likely you are looking for ways to finance the vehicle. A car loan is typically the way to go because it's the quickest way you can own a vehicle without the need to spend a huge amount of money upfront.At CarFinance.com.au, we have access to a variety of finance options so we are able to help you find a finance solution that will suit your needs when you buy your new wheels.
A car loan allows you borrow money from a lender or bank to help you purchase a vehicle. In return, you will need to pay back the money borrowed in weekly, fortnightly or monthly instalments that will include interest. Listed below are some key benefits of getting a car loan:
Saving enough money to buy a car can take some time, so it's common to take out a car loan to help you buy a car sooner.
Getting a car loan can make financial burdens more bearable because you will only be paying a small amount of the total vehicle price each month, rather than forking over a huge amount at once. In other words, you're spreading the total cost over a longer period of time, making it easier for you to make a budget for your car repayments.
You can lower your car loan repayments by adding in a balloon or a residual payment. This feature allows you to reduce your monthly repayments in exchange of paying a one-off lump sum at the end of your term. The balloon payment can be up to 50% of the car’s price, depending on your car finance term and other factors.
If you’re looking to improve your credit rating, taking out a car loan is a great way to help boost it by consistently paying your loan repayments on time and in full. A good credit score can help you qualify for other loans with lower interest rates.
When you choose a car loan, it’s important to compare interest rates. In the current market, car loan interest rates vary, starting at 2.99%, and reaching upwards of 10%. A car loan with a low interest rate is often considered to be the preferable loan product.
You should also look out for the upfront and ongoing fees attached to a loan, loan features such as a balloon payment and redraw facility, and the repayment frequency.
To qualify for the best interest rate for your new car loan, make sure you have a clean credit history. A good credit score can indicate to the lender that you are a trustworthy borrower and you are able to repay the loan on time. Shopping around and comparing different car loans can also help you find the best car loan interest rate in the market.
A reliable car finance lender is important when looking to get a car loan. Ideally, you want to choose a lender with good customer service, competitive rates, and flexible repayment options. At CarFinance.com.au, we can help you secure the car you want with car finance deals that suit your needs.
You can check out any new car finance deals by shopping our inventory, as well as getting pre-approval for your car loan.
There are two types of car loans that CarFinance.com.au offer for new vehicles; secured car loans and unsecured car loans.
A secured car loan is the most common type of car loan in Australia. This type of loan uses the vehicle you purchase as the collateral to the loan, and if you fail to make some loan repayments, the lender can repossess the car and sell it to recoup the money. Secured loans will usually have a lower interest rate than unsecured loans.
An unsecured car loan doesn't have any collateral, so it’s considered to be riskier to the lender resulting in a higher interest rate. This type of loan can also be used for debt consolidation, holidays, weddings, or cars and vehicles that do not qualify for secured loans.
Your car loan repayments will depend on a lot of factors such as interest rates, the loan term, loan amount (how much you are borrowing), your initial loan deposit, balloon payment, and your repayment frequency.
An easy way to calculate what your repayments may be is to use a car loan calculator. This tool can automatically run the numbers for you, giving you a rough estimate of your car loan repayments.
Getting a car loan to finance your new vehicle has never been easier. Whether you’re buying through a dealership, auction or private seller, CarFinance.com.au can help you get the best rate available on a car loan. You can apply online or call us 1300 889 669.
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Terms from 12 to 84 months with fortnightly or monthly repayment options