The simple premise of looking to finance when you need to purchase a new or used car is simply searching for some help to pay for your car. If you have never worked with financial tools and have no clue about how to go about getting quotes and starting to compare them, then this simple guide might be able to give you a little headstart! Have a read!
We say this time and time again, it’s hard to afford a car! Not everyone will have the resources in their bank accounts or other savings spots in order to pay the full price of a car off the bat! That’s why they borrow money – from reputable lenders across Australia who are able to give you the funds that you need. The idea is simple. You borrow money from them and you repay the money back while adding a little bit more (the interest) while you slowly pay them back for this big favour! It’s a service that has helped many people afford their dream cars based on a small amount of actual funds.
Because lenders are taking a risk by giving you all this money so you can go buy your car, they need to make sure that they have a whole lot of details about you – your work history, your personal details and identification, and most importantly information about your credit history too, so that they can determine whether or not you can afford to repay your loan and are trustworthy enough to keep to your obligations. Their initial checks will make a difference in the rate of your loan and whether it get approved at all!
Getting a good Car Financing Rate
Once all the quotations are in, then it boils down to you making comparisons and contrasting one plan against another. There are actually a lot of different financial tools that can supply you with the funds that you need, but it’s important for you to spend the time to examine how each plan works and working out the different obligations you are signing up for – such as the deposits, balloon payments, monthly commitments and other fees and rates that are applicable on the loan. The difference between one and another might be a great deal of money and/or savings over time, so decide well!
Once you have selected which car financing plan to take up, all you need to do is go get your car, and of course – MAKE PAYMENTS! There are lots of terms and conditions that surround the repayment of your loan – what happens when you default, what fees and charges are applicable, if there are any fines when that happens and in the case of secured loans, how your assets or the car itself may be repossessed by the lender. And in the interest of protecting yourself, we can’t stress this enough! MAKE YOUR PAYMENTS!
If you have been looking at car financing plans and need a little bit more guidance, you can also look at professional financial consultants to help you work out all the comparisons of the different car financing options. Come to The Smarter Finance Company – we’ll be glad to help walk you through the process!