As the foremost consultant for car financing issues in Australia, The Smarter Finance Company knows that a lot of people need help to get their car financing plans properly in place! We would like to share some information about the 3 basic types of car loans so that you have some food for thought when you’re picking one to fund your new car!

Personal Loan?
If you are looking for the simplest car financing plan of the lot, then opt for a personal loan! You don’t need a deposit to get one of these kick-started at all because the bank’s approval of this loan to you is solely based on your own merit and credit score. A personal loan is also the ideal choice for the car buyer who doesn’t want to deal with any other intermediaries and wants to own the car outright as once the loan has been advanced to you to pay with, you will hold clear title of the car and be free of any mileage or care restrictions and will be able to buy and sell without having to worry about obligations to any other party – the sale of your car can easily go towards paying off your personal loan without any other side effect.

Hire Purchase?
The Hire Purchase option is definitely gaining in popularity these days – it is a good mid level car financing option that allows you the flexibility of a number of configurations that suit your needs and budgets. Coupled with the fact that you will still have the option to own the car towards the end of your loan tenure, the hire purchase agreement most definitely can be very attractive to car-buying hopefuls! With a deposit, you can adjust the monthly instalment amounts as well as the length of the loan period. With the car as a security for the loan itself, there is a low amount of risk involved and this is enhanced due to the fact that the car is not listed under your name until you make the arrangement to take over the title.

Dealer Finance?
If all of the above still sound a little complicated for you, then why not look at dealer finance instead. Getting your car financing settled while you are at the showroom can seem terribly convenient and most definitely will save you some time and stress since the sales people will be more than happy to assist you with all the paperwork that needs to be done. However, we would caution you to make sure that you do a little research before you decide to go this route. Dealers are known to inflate their rates so that they can earn a little off the top of your car loan too. But if you don’t mind paying a little bit extra for the convenience, then you don’t even have to give it a second thought!

When you’re ready to look at car financing plans, it’s good to explore your options with an experienced and professional financing consultant, much like The Smarter Finance Company! Why not give us a call today and let us help you find the perfect car financing plan that fits your budget and needs today?