When it comes to applying for car finance Gold Coast many people assume that they need to talk to the finance person at their local car dealership. Or they may think they’ll need to take out a personal loan with their bank.
The idea of talking to a broker may seem a bit odd…after all, “doesn’t a broker only help you with home loans?” This is a common misconception, but the fact is, a finance broker can help you with all kinds of loans, including car loans Gold Coast.
At Professional Lending Solutions, we have an experienced team of equipment finance brokers who can help you obtain the best car finance or car loan Gold coast option to suit your needs. We can take the stress out of securing car finance Gold Coast by offering tailored advice, comparing finance products from a wide range of lenders and answering any questions you may have throughout the entire process.
So how does a car finance work, exactly?
A car loan is basically a loan that you take out from a bank or a lender in order to buy a new or used car. The loan is usually paid off along with the interest over a period of time, often between 3 and 7 years.
Car loans can be great way to get your hands on that car you’ve been dreaming about, without needing to save up all the money yourself. And as long as you make your payments on time, car loans are a relatively safe way to borrow money.
These are paid off monthly, but you can ask your lender if they accept weekly or fortnightly repayments if that suits your financial situation better.
Check if your car finance Gold Coast lender will allow you to make extra repayments without paying a fee. Making more frequent repayments can help you pay off the loan a lot sooner and with less interest.
This is the rate of interest you'll pay on the amount borrowed.
This takes into account not just the interest rate on the loan, but also any fees and charges that are associated with it. This makes it a lot easier to compare loans from different lenders and see the best car finance deals Gold Coast.
This is an agreed upon lump sum payment to the lender at the end of the loan term.
Shorter terms mean bigger repayments but often have lower interest rates, whilst longer terms usually have lower repayments but will have you paying more interest
Check the Ts&Cs whether the loan can be for a second-hand car or only for a new car, and whether there are limits on how old the car can be.
A car loan broker on the Gold Coast acts as a liaison between a car buyer and a lender. Unlike a bank or a car dealership, a car loan broker has access to a wide range of lenders offering a variety of car finance options. This makes it easier to find a car finance deal that will suit your specific needs (without having to pay extra!).
In addition to deciphering industry jargon, reading the fine print and answering all your questions, a car loan Gold Coast broker will also act as an advocate on your behalf. This means they’re committed to helping you find the best possible car finance solution that is available to you.
Below are the questions tackled in the video:
Hint: personal use VS commercial use, personal loan VS consumer car loan
Hint: Car brokers are ALWAYS compelled to work in your best interest whilst dealers present you with limited choices.
Hint: Banks don’t usually do consumer car loans. They offer personal loans which are more expensive
Hint: Yes, so you can negotiate for a car deal with more confidence.
Hint: Unsecured means personal loan, while secured car loans put a charge over the car.
Hint: Typically it’s not essential, but will make things easier.
Hint: Yes but it comes with more risk.
This may vary depending on which broker you decide to use. At Professional Lending Solutions, we don’t charge our customers for our services. Instead, we receive a commission payment from whatever lender you decide to obtain a loan through. However, some car finance brokers will charge a fee for their services. This will either be a set figure or a percentage of the total loan amount. If you choose to work with a broker who charges for their services, then make sure you fully understand all the associated costs upfront (and read the fine print carefully).
When you meet with a car loan broker, you’ll typically need identification documents (equalling at least 100 points of ID) and evidence of how much you earn (such as recent payslips, payment summaries or completed tax paperwork). Depending on your current circumstances, you may also need to take some other forms of supporting documentation. The best thing to do is talk to your broker when you make the initial appointment, as they’ll be able to provide tailored advice
An experienced car finance broker can help you carefully evaluate your car finance options, ensuring you end up with the car loan that will best suit your needs. The key areas to look at are the interest rate, any upfront or ongoing fees and what features the loan comes with (such as redraw facility or the ability to make additional repayments). For example, Loan A may have the lowest interest rate. But if Loan B’s interest rate is only slightly higher, but with significantly lower ongoing fees and a provision for added repayments, then Loan B may be the better choice.
Some lenders specialise in bad credit car loans Gold Coast and even accommodate those without credit history. A car loan broker with access to lenders like this can help you get in touch with them and even liaise with them for you.
Yes. There are lenders specialising in no-credit check car loans. They usually require the borrower to present some form of property as collateral (for a secured car loan). If you are getting an unsecured loan, you will not be required to present a collateral or any type of security, and almost anyone can apply for one. Cars on finance Gold Coast with no credit check are usually quickly approved and have a much simpler process. However, they require a bigger deposit and come at a higher interest rate and longer repayment terms. Consult your car finance broker for further advice.
When a loan is secured, there is some form of collateral placed against the sum borrowed. In the case of a car loan, the car itself will usually act as security for the loan. This means that if you default on your repayments, the lender may choose to repossess the car to pay off your debt. It is possible to obtain an unsecured car loan, but these will usually charge a much higher interest rate (since this type of loan carries significantly more risk for the lender)
Unlike a home loan, you don’t necessarily need to have a cash deposit saved up before you can take out a car loan. But a deposit will look good on your loan application and may even make you eligible for a better car loan deal. Additionally, having an initial cash deposit will reduce your monthly repayments and the amount of interest that you’ll have to pay over the life of the loan.
Simply put, a chattel mortgage is a loan for a vehicle that will mainly be used for business. So, if you’re a self-employed plumber and you need a van for transporting your tools and materials in between jobs, then you may be able to apply for a chattel mortgage instead of a standard car loan. Our brokers can assess your current financial circumstances and advise whether you’re eligible for a chattel mortgage.
You’ll save yourself a lot of time by choosing to work with a car loan broker on the Gold Coast. You won’t have to spend countless hours researching and comparing the various car finance options available – your car finance broker will do all of that for you. They’ll examine the different car loan products on offer, determine which ones are going to best suit your circumstances and then help you to complete the necessary paperwork.
A car finance broker has access to a panel of lenders who are all vying for business. This means you’re more likely to find a car finance product with low fees, a competitive interest rate and the added features that will best suit you. And with an experienced finance broker working on your behalf, you won’t have to worry about hidden costs or whether you’ll end up paying too much interest over the life of the car loan.
Arranging finance can be a highly stressful task. But when you work with a car finance broker, you’re essentially handing all the stressful elements over to someone else. They become responsible for finding the best deals, double-checking the application, ensuring all the supporting documents are in order and dealing directly with the lender if any follow-up information is required.
Multiple car finance rejections can be damaging to your personal credit rating. This will not only make it harder for you to secure car finance in the short-term, but it could also have a negative impact on your long-term ability to secure a home loan. By working with a car finance broker, you’re maximising your chances of gaining loan approval the first time you apply.
