There’s no denying that cars are no longer considered a luxury these days but are thought of as essential items. In Australia, over half the households in the country have two or more vehicles.
The thing about cars is the companies that manufacture them launch new models each year that offer a plethora of performance and fuel economy benefits. What that means for motorists is newer vehicles are inherently better for their wallets – and the environment.
But, when it comes to paying for a new car, many people don’t have the amount of money readily available to pay for it outright and in one lump sum. Thankfully, there are many cost-effective ways to get behind the wheel of a new vehicle with car finance.
A car loan enables motorists to finance a new car by spreading the amount required over several affordable monthly payments.
General information about getting a loan
One of the advantages of getting a car loan for new vehicles is there are several different types of financing available. For example, some products allow you to ‘lease’ the car for three years and pay low monthly repayments.
Alternatively, you could pay a large deposit and split the balance over several monthly payments to own the car outright.
To get a car loan, applicants will need to be 18 or older and prove they have a regular income. Applicants also need to provide proof of residence, identity, and details of assets and savings.
What do I need before I apply?
It makes sense to firstly decide on the make and model of the vehicle you want to buy. That’s because the majority of finance options for new cars get secured against the vehicles themselves.
Next, you will need to determine the state of your credit rating. You can do that for free with Equifax.
You must also gather proof of your income by gathering your last three months’ payslips if you’re employed. It also makes sense to check you can afford to pay for any loan repayments when you finance a new car.
More information about financing a new car
Once you’ve got the necessary information required that proves your identity and income, you’ll then need to decide which type of car loan is right for you. There are several different options to choose from:
- Secured finance. You pay a deposit of 10% to 25% and pay the balance over a series of instalments. You can typically choose one to five years as your repayment period;
- Secured lease. You pay a small deposit and a series of small instalments, typically over three years. At the end of the lease, you can hand the car back to the dealer.
If your credit rating is low and prevents you from getting mainstream finance, you can apply for ‘bad credit’ versions of the above options.
You should be mindful that any car loan financing options you pursue will have interest added to the amount borrowed. Also, interest rates can be higher on some finance products compared to others.
When you look for the right new car loan, it’s a good idea to compare the different options available to you on the market. Doing so will ensure that you can get the best deal for your needs.
How to apply for a car loan
Awesome Car Loans is a broker that specialises in finding people the best new car loan finance deals for their needs. Applying for a car loan through us is easy, convenient and time-saving as we will find you the best deal through our network of lenders.
To apply for a new car loan, simply fill in the quick application form. One of our friendly team will contact you to confirm your details and get a copy of your supporting documents. We’re here to help, so feel free to ask our representatives any questions.
Conclusion
If you want to get behind the wheel of a brand new car, the process of financing it has never been easier thanks to Awesome Car Loans. We search the market so you don’t have to, and we find you the best deals through our specialist network of lenders.
