A new car on your mind; Explore Car Loans that fits your Financial Plan!
In a world where freedom is the highest goal, owning a car and finding a suitable car loans means everything. Whether going to work or taking the kids to school or even revving into the open roads, a car has become the ultimate symbol of freedom and an essential for Australians.
If you’re looking to buy your first car or upgrading to a new one, a car loans will help your dream become a reality with minimum effort.
Car loans come in different varieties to suit a borrower in diverse situations. There are new or demo or used car loans that can be taken out on a secured basis at reasonable interest rates.
Choosing the right car loan that suits you might get tricky if you are not too careful. Comparing different loans from different lenders is the best way to determine what’s best for you. However, this can get tricky and cumbersome. That’s why you need an expert who can guide you in the right direction and that is where the car loan experts from Nfinity Financials can help you in finding the best car loan for you whether it is for your personal or your business requirements.
Frequently Asked Questions for car loan
When it comes to car loans, there are plenty of finance options available depending on your need and purpose. Before you consider your options, there are a few key factors to consider before you make that commitment. We’ve put together a few common queries regarding car loans to help you get started.
Can I get pre-approved first and then find the car I want?
Absolutely. In fact it is a very good idea to get a pre approval for your car loan to ensure that your finance options are in place before you finalise your new car, so that you can consider your car options with confidence. You can let us know the broad range of cars you are looking at along with the tentative amount of loan you require and we can start the preapproval process for you and obtain your preapproval whether you are looking at a purchase through a registered dealer or a private sale.
Nfinity Financials car loan experts have access to a variety of lenders who provide car loans and can help you find the best option for you.
Further, when you have finalised the vehicle that you are purchasing, our car loan expert will coordinate with the lender and your car dealership to get the quote and other final documents to finalise the settlement of your car loan so that the funds can be drawn down and all you will need to do is zoom away in your new car. You need not worry about any paperwork
What’s the difference between a personal loan and a secured car loan?
A personal loan can be used for any purpose, whereas a secured car loan can only be used to purchase a car. The amount that can be borrowed on a personal loan and a secured car loan is determined by the lender, the loan, the market, and the borrower’s income and credit history. Choosing a secured loan can make the loan cheaper and easier to get approved, as it is deemed a lower risk by the lender.
What is the maximum amount of loan that I can get?
It depends from one bank to another. Usually, banks approve loan amounts that range from upto 100% of the car’s price. However, banks will first assess your credit history, current income, and various other factors to determine how much you are allowed to borrow. If the loan is secured against the car, you may be able to borrow more, as the car will be used as collateral.
Is it possible for me to get more than one car loan at a time?
You can have as many car leases or loans as the lender – and your budget – allow. The lender will take into account how well you deal with your current and past loans, and whether you can afford to take out a new lease or loan. This will involve looking at your income and your credit file.
Can I get a car loan with a bad credit rating?
Getting a car loan with bad credit is possible – provided you tick the right boxes and provide the lender with good reasons to extend you a loan. However the interest rates may vary from lender to lender.
Is it possible to get a car loan if I’m not an Australian resident?
Yes, it is possible to get a car loan if you are not an Australian resident. However, it might be a little difficult and your options may be very little.
Should I Go for Dealer Finance?
Things to keep in mind when considering Dealer Finance
Another alternative to a car loan from a bank is to get Dealer Finance. This is when the dealers try to give you their own finance options. While there are some conveniences to it, you have to be a little cautious in choosing them, because dealerships function differently than independent financial institutions.
Here are a few things you have to keep in mind before choosing one:
1. Offers may be eye-catchy but not customer-friendly
Dealer finance may sound exciting as the dealer tries to sell it to you, but if you let them arrange the financial option for you, it may lead to an inflated monthly payment for you. You need to check the option in entirety and consider it if it is actually beneficial to you after all the comparisons.
2. Lack of expertise in finance
The dealer may know the ins and outs of a car, but when it comes to financing, they may not have the necessary technical expertise. A car loan, after all, is a big financial commitment you are making. Hence, it’s best for you to trust an expert.
3. Hidden fees may apply
Another downside to choosing a dealer financing can be the lack of transparency. Often, the rate the dealer secures with the lender may not be the rate that you end up with. This means, they might offer you an option with a “low” interest rate, however, this may come with few additional hidden fees in your contract. That’s why it’s important to review the fine lines of your contract with a keen eye before you sign it.
Can I Refinance my car loan ?
Refinancing car loans is a popular and convenient option for many borrowers in Australia. It is basically, replacing an existing loan with another one under new terms. You can also look at it as trading in your old car for a new one. There are certain conditions the banks have before they refinance your car loan and you will need to check if those conditions are met before you can get a refinance on your car loan.
When can you consider refinancing your car loan?
Car loan refinancing can be very beneficial to you in the following instances:
- For changing the terms of your auto loan: If you are not happy with your existing car loan for whatever reason, and had come across a much more suitable option, you may choose to refinance to enjoy the better features.
- For lowering interest rates: If you feel like your current loan on your car is too high, refinancing could help reduce your monthly repayments with long term but lower interest rates.
- For when life’s situation changes: When situations in your life change, you may want to change the amortisation of the loan due. In that case, refinancing can be helpful as you can increase or decrease the tenure according to your needs.
Process for refinance of the car loan
- Reviewing the term and interest rate and other conditions of your current car loan
- Finding other car refinance options and comparing them for your requirements
- Ascertain all the costs associated with the refinance of your car loan.
- Doing a cost benefit analysis to find whether refinance option is beneficial for you or not.
- If it is beneficial, we start the process with the existing or a new bank to refinance your car loan.
How much would it cost you to refinance your car loan?
The cost to refinance your car loan depends on how much you borrow, for how long, and from whom. However, here are a few things you can keep in mind that is usually associated with car loan refinancing:
Early exit fees: For paying out your existing loan before the conclusion of the loan term.
Admin fees: To cover the paperwork associated with refinancing.
Setup fees: Your new lender may charge a loan setup fee at the beginning of your new loan.