When it is time to buy a car, getting the correct car finance or the right car loan can be important decision.
Financing your next car is a very important process, as you want to choose a finance package most suitable to you. There can be many things to check.
Car Finance Low Interest
Get the right car finance low interest. If you have time do a little homework. The web can be a good place to start. Watch out for the advertised interest rates that state 'from'. It means just that and in current market there are more companies advertising rates that are no longer current. If it's to good to be true then it isn't. With commercial car loans the interest rates don't show on the finance contract so it pays to use our online car loan calculator and check.
Car Finance broker
If you are unsure or lack the time like most people then use a good car finance broker. Make sure they are established broker and check to which car finance companies they use. Car Loan Calculator recommends Finance Ezi . When choosing a car loan broker ensure that they don't charge extra brokerage as most get paid direct from th banks. For Finance Ezi phone 1300 003 003 enquiries@financeezi.com.au.
Fees and charges
Most lenders charge a application fee and monthly administration fees. Some advertise no fees no application fee. This doesn't mean they are cheaper. Use a comparison interest rate to compare. A comparison interest rate takes into account all fees and charges with the interest rate, hence giving you a true comparison of This has to be quoted on all consumer car loans in Australia. To get a full explanation on car loans comparison interest rates
Early Termination Fees
Most have it and if they advertise they don't there is normally a condition to why. Ensure to check and ask if all outstanding interest will be rebated back off the loan. Consumer and commercial are very different.
Consumer car loans in Australia are regulated under the Uniform Consumer Credit Code Act. They cannot penalise you interest for simply paying the loan out early, only if you make late payments. Banks and car finance companies can charge a small administration fee. Most are very similar at about $500-$600 pro rata over the loan period depending on how long over the financed term it was before payout.. It is worked out on dividing the total months of your car loan that the contract was made out for and then times the amount of payments you have made. For example if the maximum fee was $600, your loan term was 60 mths and you paid off 20mths :
$600/60 = $10x20 = $200.
Commercial car loans are unregulated and are very different to consumer car loans. Most will charge a penalty or percentage of the outstanding interest. This amount can variey depending on the bank and how soon through the loan you payout early.
Some will reduce their fees or not charge at all if when paying the car loan out it is replaced with a new car loan.
Other things could be can you pay extra payments (most do) and how much time it will take to approve and settle your car loan.
Alway remember that they need to approve your loan so the car finance company must suit your criteria to approve the finance .
Secured and Unsecured Car Finance
You can have unsecured or secured car finance which can affect the cost of your loan.
It can be a requirement of the car finance company to have fully comprehensive on your car before and while you pay off your car loan.
Finance companies can assist to ensure you have a hassle free car purchase and help with:
- Encumbrance checks to ensure that there are not any outstanding loans from the prior owner left against the motor vehicle.
- Title check or confirming the ownership of the car you are purchasing.
- Clear transfer to seller of the amount financed on the car purchase.
Car loans, subject to the finance company's approval can be financed to the full cost of the purchase including:
- On-road costs and taxes.
- Car Insurance
- Motor vehicle breakdown warranties.
- Loan protection for death, disability and unemployment.
Older cars can be ok. Car loans can apply for all ages new and used depending on the car loan lender.
Finance structures can be flexible to suit your circumstance. Options to consider on your car loan could be:
- Delayed payment car loans so you first payment starts at a extended time into your finance contract.
- Interest only payment options including balloon payments.
- Extended finance terms.
- Structured finance payments to suit your life style or your work cash flow.
There are many motor finance options available for imported cars.
Commercial car loans options are available that could be suitable for business use. Some factors to consider that relate to business car financing are:
The structure of your business car finance can affect your taxation claim.
Dealing through a reputable car loan broker can give you a choice of car finance lenders. It is important to know that you may get car finance interest rates and fees and charges cheaper than banks.
Click here to go to Finance Ezi for car loans
