Are you planning on buying a car? You are in luck as there are many car loans with competitive packages being offered by banks and lending institutions today. Hence, it is now easier to get a car loan! Familiarise yourself with the different types of car loans available for you to be able to make an informed choice and get the best deal.
Let’s start off by identifying what kind of car you are planning to buy. Do you intend to use your loan to buy a brand new car or a used one? If you plan on getting a used car loan, be guided that some financial institutions impose car age restrictions. Keep in mind that each lender has a different threshold as to when they will accept a car as suitable to be used as security for the loan. Some may only allow cars that are between two to five years old, making it more difficult for borrowers to be eligible for a used car loan. Another important thing to consider is that interest rates of used car loans are slightly higher than new car loans. At the same time, interest rates for used car loan are higher when older cars are involved. For instance, the interest rates of used car loans for cars less than two years old range from 7.99% to 8.29% per annum. On the other hand, the interest rates of used car loans for cars between two years and five years range from 9.49% to 9.79% per annum.
With the wide range and complexities of car loan products, it will serve you well if you know and understand all the available loan products that you are eligible for. Seek professional advice to let them help you out understand the choices you have and the implications of the loan which you plan to get. At the same time, have the Finance Group Parramatta do a Free Credit Check for you. Remember, credit rating plays an important role in the approval of your car loan. It also spells the difference of getting a high interest rate or a low interest rate. Let them help you get the car loan best suited for your present needs. Simply prepare the following documents and submit them in PDF: (1) ID; (2) two most recent and consecutive payslips; (3) statements for all liabilities for the past three months; and (4) statements of all transaction accounts for the past three months.
It is advised too that you shop around and work out exactly what car you would like. Remember that it is very crucial that you know what car you plan to buy and its market value before you apply for a loan as your car will largely determine what type of loan product will work best for you and your financial situation. To check the market value of your car, visit http://www.carpoint.com.au/car-valuations/ and get a good estimate of how much to spend and loan.