Getting a new car loan shouldn’t be a difficult process. There are two things you can do to prepare so that you can get through each step and get your dream vehicle. First, work with a broker who can access a network of lenders and help you find the best financier based on your situation. Second, arm yourself with knowledge so that there are no surprises.
New Car Loan? Here’s What You Need to Know
- How Much Interest Should I Expect to Pay?
Interest rates vary and can change based on the market and the lender. You should expect to pay around 2% more interest compared to the rates associated with the standard mortgage. That’s because cars depreciate faster. The lender wants to make sure that they can recoup the value of the loan if you stop paying. They have to manage risk, and one way to do that is with higher interest rates. This is an expense that must be considered when budgeting for a new car loan.
- Can I Get No or Low-Interest Car Loans?
No or low-interest car loans do exist. You may see adverts for Kia, Toyota, Nissan, and other car manufacturers promising this type of offer. The good news is that it is not just a marketing ploy. They will provide financing with little or no interest. The trade-off is that you are going to end up paying a lot more for the vehicle. It’s often better to shop around for other financing options or pay with cash if you can rather than go this route.
- What Type of Car Should I Buy?
There are lots of great cars available in Australia. The type of car you should buy really depends on your needs. Do you need a small vehicle with good gas mileage to get around your local area? Do you often take lengthy road trips and need something more spacious? Do you have a big family to seat or do you ever need to haul luggage or other cargo?
A good way to begin is to make a list of your must-have features and specifications. Then you can create a second list of items that would be nice to have, but wouldn’t be a necessity. Try to find a vehicle that offers everything from your first list and as many items from your second list as possible within your budget.
Here are some popular models to consider buying with a new car loan:
- Volkswagen Golf
- Toyota Corolla
- Hyundai i30
- Toyota Camry
- Ford Ranger
- Mitsubishi Triton
- Who Should I Talk to About a New Car Loan?
Did you know that you could receive approval for your new car loan in as little as 24 hours? If you want a quick response and the best lending options available, talk to Blink. Our experts will find lenders that are a great match. We do the hard stuff so you can enjoy a stress-free buying experience. Stop by our website and fill out the online assessment form or call 1300 827 848 to get started on your new car loan.