Need finance to buy a car?
There’s no doubt about it – car finance is a big industry in Australia. According to the latest figures from the Australian Bureau of Statistics, car finance rose to 3.2% in May 2022 as more and more Australians are getting car loans.
If you’re in the market for a new or used car, there’s no doubt you’ve heard some crazy myths about car finance. Maybe you’ve been told that you have to have a perfect credit score to get a loan, or that dealers can add unnecessary fees onto your contract.
It’s important to know what’s true and what’s not when it comes to car loans Gold Coast. That’s why we’re here to bust some of the biggest myths in the automotive industry. Keep reading for the inside scoop!
How does car finance work in Australia?
So how does a car finance work, exactly?
A car loan is a type of secured loan in which the borrower uses the vehicle as collateral. In other words, if the borrower defaults on the loan, the lender can take possession of the car.
How to get a car on finance? A car finance company will usually approve a car loan if you can meet certain criteria, such as being employed, earning a regular income, and having a good credit score. The amount you borrow will depend on factors such as the value of the car, your income and credit score, and how long you want to take to repay the loan.
Most finance car companies allow you to repay your loan over a period of between 2-5years.
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How much car finance can I borrow?
Car finance can help you to spread the cost of your new car over a period of time, and it can also help you to get a lower interest rate.
Top 5 myths about Gold Coast car finance
Myth #1: It’s impossible to get car finance with poor or no credit.
Fact: Whilst it is true that car finance rates tend to be higher for those with poor or no credit, it is not entirely impossible to get car finance. Some lenders even specialise in bad credit car refinancing or those without credit history. With a seasoned broker car finance options for people with not-so-good credit scores still abound.
Myth #2: You are stuck with the initial car finance option you chose until you pay it all off.
Fact: You are not obliged to stay and complete a deal that you don’t think serves your best interest. If you cannot stay until the end of the lease term, you can always refinance your car with the same or different lender. Talk to your car loan broker to see your options.
Myth #3: You save more money by purchasing a new car.
Fact: A used car depreciates in value and so costs less upfront when sold. However, new cars have better and more financing options (comes with rebates and incentives too) available than used cars.
Myth#4: You must obtain 100% car financing
Fact: Not exactly. In fact, some lenders offer no deposit car finance options. Do note that upfront costs may be lower, but monthly repayments will be augmented. Consult a car broker to know various ways to finance new car and old ones.
Myth #5: Only apply through a dealer for a car loan
Fact: There are a few different to finance a car in Australia. You can apply through a dealer, or you can go directly to a bank or other lender. It’s also possible to get a car loan through a trustworthy broker, who will shop around for the best deal for you.
Benefits of using a car loan broker
Arguably, the best way to get a car loan is to use a finance broker as you’ll give yourself:
- More choice so you don’t limit yourself to a specific lender.
- More control so you are no longer just a name on an application form.
- More bargaining power so you can walk into a dealership and tell them exactly how much you have to spend.
- More time since your broker will find the best car deals on finance for you.
- More information so you can have confidence you’re making the right choice.
Let the car finance brokers at Professional Lending Solutions help
The car finance Gold Coast team at Professional Lending Solutions has years of experience helping our clients get behind the wheel of their dream car.
Whether you’re looking for a new or used vehicle, our equipment financing broker can work with you to find the best deals car finance seekers elsewhere can only hope to have. In fact, we’ve helped people get the lending solutions they needed when other lenders said no. So don’t hesitate to reach out to us for any car finance Gold Coast concerns – we’re here to help!
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Phil’s journey from banking to mortgage brokering reflects a career driven by a commitment to personalised service and tailored financial solutions. With a distinguished background in banking, including roles at NAB, ANZ and Lloyds TSB Bank in the UK, Phil spent 12 years developing expertise in personal and commercial finance, while also completing a Bachelor of Business (Finance), followed by an MBA majoring in International Business.