Car Finance Deals

Your Guide To A Good Used Car Finance Deal

When you are wanting to buy a new car, a used car is a great option if you want to save a lot of money. When you do a used car finance deal, you will have more room to negotiate, especially if it is a private sale. When you don’t have the full purchase price amount available, there will be a variety of financing options to consider. Carefully consider each car finance option before settling on the right one for you and your wallet.

Quick Guide To Used Car Finance Loans

Car finance loans on used vehicles will be different than with new ones. Financial institutions have certain restrictions when it comes to the age and value of the vehicle you are interested in before being able to qualify for the loan. As an example, some lenders may only offer a car finance loan on a used car for periods of two to five years. It should be kept in mind, however, the interest rates on used car loans are typically higher than on new car loans because the quality of the vehicle is much less assured.

When you purchase a used vehicle, you will need to provide details of that vehicle when you apply for a loan. If you know the exact type of vehicle you are looking to purchase, you may be able to get pre-approved for a used Car Finance Stratton loan from the lender in order to secure the financing before you actually buy. After being approved for the used car loan, you will agree to repay it within the specified loan term.

The loan term that you will be approved for will vary between lenders. However, most terms are between one and seven years for non-fixed rate loans. For fixed-rate used car loans, the loan term is generally between one and five years. Depending on the terms of your specific loan, you may be able to make the additional payments or pay off the loan early without penalty. If you make no additional repayments to the loan, you will continue making payments until the specified due date on the original loan application.
Cars & Utes
Steps To Finding The Best Car Finance Deal

Finding the right finance deal is almost as important as finding the perfect car to purchase. When looking for the right loan, there are a few things to consider. The interest rate is the first thing to consider. This is the rate offered by the lender and should be meticulously compared between the lenders you are considering. The interest rates are typically higher on used car loans as opposed to new car loans. Secondly, you need to find out what the lender’s fees are on used car loans. These fees may include administration fees, early termination fees and loan management fees. Lastly, you should figure out how flexible your loan may be. Ask a lender if you are able to make lump-sum payments during your loan term or additional payments. You will want to know if you will be able to use a redraw facility if you make additional repayments without any restrictions.

Car Loan Value

The Value of a Car Loan

Do you want to purchase a vehicle? If so, getting a car loan is one of the best ways to accomplish this goal. There are various people who are excited about the different car loans options available today. As the economy in Australia continues to improve, getting a car loan has become easier than ever before.

Before getting a car loan, you need to make sure that you have a financial plan to pay the money back. There are many people who end up making a bad financial decision by borrowing too much money on their new vehicle. Before signing up for a loan, it is critical to assess the financial impact that the loan will have on your finances each month.
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Buying a Car

Buying a new car is one of the biggest financial decisions that anyone will make throughout the year. With this in mind, you need to make sure you understand all of the financial implications of your decision. Before signing up for the loan, you need to understand the monthly payment required of you.

In some cases, the car dealer can provide financing for the vehicle. With this in mind, it is critical to look for deals in your area. There are numerous people who have been able to save money on a vehicle by simply shopping around and negotiating the price. Buying a car can be a fun experience if you conduct proper research. You need to understand the price cars are selling for in your area before getting a loan.

Car Loan Options

With the improved economy in Australia, there are numerous Stratton car loan options at https://www.strattonfinance.com.au/car-finance/car-loan. For example, there are car loans that extend for five years or more. In the past, most car loans only extended for three years or less. This is an opportunity to stretch out the payments and make less of a financial impact on your budget each month.

However, with a longer payment term, the total interest that you pay over the life of the vehicle will be higher. Working with a company that you trust is essential to making a good decision with any car loan. There are many people who are excited about all of the car loan options that they can choose from.

Next Steps

If you want to purchase a vehicle, you need to make sure you have a financial plan in place. Some buyers end up regretting their decision because the car loan ends up being more expensive than they originally thought. To prevent this, run the numbers before making a final decision.

Why You Need A Car Loan

hy You Need A Car Loan

In today’s world, consumer motor vehicles have virtually replaced all other forms of transportation outside of government-supported public transportation. Even in scenarios where traveling by public transportation is feasible – if not faster than traveling by car, truck, SUV, or van, like in the world’s largest, most congested cities – many people would, in an ideal situation, prefer to own a vehicle.

Unfortunately, most people don’t have enough money to purchase a vehicle with cash, or even trade existing assets into dealerships in exchange for a car or truck. This holds true in Australia, especially, home of more consumer debt per household than almost every country in the world.

Hope is far from lost for people without tens of thousands of dollars to spend on a vehicle – that hope coming in the form of a car loan.

Let’s look into the basics the modern-day car loan, how they can be advantageous to purchasing or leasing, and how you can find a favorably-priced Stratton finance car loan https://www.strattonfinance.com.au/car-finance/options/car-loan.aspx

Car loan defined

car loan is far from complex in nature, although how dealerships screen applicants for suitability is, in fact, difficult to understand at first glance. The car loan involves principal, interest, term periods, and financing fees.

In its simplest form, a car loan worth $X amount today will cost $X + interest + financing fees. Just like every other type of lender – home, furniture, cash money – charging interest and financing fees is an integral part of lending.

Dealerships charge interest for two main reasons:

Loaning anything to others is inherently risky. Lenders commonly face borrowers that don’t pay them back at all or in full, whether it’s on purpose or entirely unintentional. As such, if dealerships – any lenders, really – failed to charge interest on their loaned assets, they couldn’t possibly hedge against the uncertainties that come hand-in-hand with lending.

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In virtually every developed country, the value of money decreases over time. Also called inflation or the time value of money, collecting interest allows lenders to keep up with current inflation rates. In most cases, interest rates exceed inflation.

How can I obtain a favorably-priced car loan without settling for a bunk car?

  • Maintain employment over several months – if not years; the longer the better – and make certain to have access to legitimate proof of income.
  • Don’t be afraid to shop around. Dealerships often try to frame their offers in as positive a light as possible, meaning you could fall trap to their sales-oriented goals.
  • Seek out a credit report from one or more reputable agencies. Such reports will indicate any outstanding marks on your financial background, allowing you to remove them by satisfying debts or closing lines of credit, in turn yielding lower interest rates.

Does Your Employer Offers A Novated Lease?

Does Your Employer Offers A Novated Lease?

If you’re in the market for a new car or one that’s been previously owned by another driver, you have many options to purchase this vehicle. One of the most interesting options is a novated lease. Not all Australians are familiar with the details regarding this type of lease and how it works. A novated lease is a lease that is agreed upon between you, a vehicle finance company, and the employer you work for. It allows you to purchase a car that fits into your financial situation and your desires.

It’s a Low-Risk Buy

When you choose a novated lease, you choose a finance option that comes with a very low risk. Your employer guarantees your car lease payment is made each month by paying it for you before they pay you. This is still your money being used to pay the novated lease payment, but it’s guaranteed by your employer. You’re considered a low-risk buyer when you enter into a lease payment like a Novated Lease Calculator by Stratton Finance.

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It’s Pre-Tax

When your employer agrees to pay a finance company your novated lease payment on the due date, they agree to pay it out of your pre-tax salary. It’s good news for you because it means you get to pay less tax on a smaller income. It’s good for your financial situation in more than one way. You pay fewer taxes to the Australian government, and you get to drive a car without worrying your payments aren’t being made.

It Offers Better Approval

If you are shopping for a new or previously owned vehicle in Australia and you have a challenged financial history, a novated lease offers you a greater chance at approval. If your employer guarantees the finance company gets their money every time a payment is due, you are more likely to be approved. Since the financial aspect of your car payment is not up to you, there is no chance your employer will skip making a payment to the car finance lender.

It’s Not Always Available

Not all employers offer novated lease options for their employers. However, if you do work with a company that offers a novated lease option, it’s a good one to take. It helps you keep your finances in order by taking the option to skip a payment out of your hands, and it also helps you lease a vehicle without worrying so much about your credit history or financial statements.

Check with your employer to see if a novated lease is an option in your workplace. There is a chance you can make this happen by talking to your employer and seeing if they agree to be responsible for making your lease payments from your pre-tax income. If your company offers this lease option, it’s a good idea to keep your financial life in order and your approval chances high.