Better Car loans with Jade

Applying for a personal or business car loan is quite easy. You can either apply over the phone or use an online application form. You will need to provide a range of details about yourself and/or your business, financial records and information and details of the car you intend to buy. For personal car loans, licensed credit providers must operate in accordance with the consumer credit rules and Responsible Lender Guidelines as established by ASIC. These regulations set out what information and documents the lender requires from you. This information will include your identity, details of your income and regular expenses, employment situation and history, residential situation (own your home or renting), property and assets including investments and cash, other loans you may have including credit cards and other details as required by the consumer credit laws. You will be provided with information on credit and loans and you will be asked to sign a consent form which gives your approval to the credit provider to source a car loan on your behalf and access your credit profile.

Having a driver’s licence is not a necessary requirement to apply for a car loan. Under consumer credit laws, a person must be over the age of 18 years to be granted a car loan or any other type of loan. If you are over the age of 18 when you attain your driving licence then yes, you can apply for a loan. Individual states have different ages for attaining a driver’s licence. If you get your licence before you turn 18, you cannot apply for a motor loan.

Yes, you can apply for a personal car loan or business vehicle finance if you are purchasing the vehicle from a private seller. Finance is available for new and used vehicles purchased from a dealer, at auction or from a private seller. When buying a car privately, you may like to consider a pre-approved loan so you are ready to commit to the sale on first inspection and have greater bargaining power when negotiating price as the seller will know you can settle quickly. Private sales will presumably be for a second hand vehicle. The age and condition of a used car is taken into consideration by lenders when assessing loan applications.

With a Secured Car Loan, the car being purchased is used as security against the loan. The loan is secured with the lender by the vehicle. If the borrower defaults on the loan, the lender has the right to repossess the car and sell it to claim any unpaid monies. An unsecured loan has no security offered against the loan. In some instances, a lender will not accept the vehicle being purchased as security against a secured loan. This may happen with some older vehicles. An Unsecured Personal Loan is essentially a personal loan where no security is needed hence the meaning unsecured.

Yes, but fees may be incurred depending on the loan type. These fees are known as break fees, a fee for breaking a loan contract. The actual amount will vary from lender to lender. You can ask your lender at the time of arranging your loan what the break fees are for your loan. With Secured Car Loans (personal car loans) minimal break fees apply when a loan is paid out early.

In general terms, loans are available for all types of motor vehicles. The purchase of sedans, hatchbacks, SUVs, wagons, 4WDs, utes, work vehicles, commercial vans, MPVs and others can be financed through car loans. This is subject to the minimum loan amounts applied by individual lenders and by the acceptance of individual vehicles by a lender. Used vehicles are subject to lender guidelines. Vintage and classic cars and restoration projects and other similar ‘specialised’ vehicles may be subject to individual lender guidelines. Where a lender does not accept a particular vehicle for a secured loan, you have the option of requesting a quote for an unsecured loan. An unsecured loan is a more general loan and can be used for a range of purposes.

In general terms, you need to be over the age of 18 and have employment or income source as the minimal requirements. To complete the application you will need to provide details around your employment, income, financial situation, residential situation and other personal information and documents will be requested to verify some of the details you provide. Specifically, you will need:- Proof of age with birth certificate, driver’s licence or other acceptable form of ID verification; payslips from your current employer or proof of a regular source of income. Income tax returns may be requested; history of employment; residential situation: whether you rent or own. If renting, a rental history may be required; to assess your financial situation, a list of your ongoing weekly/monthly/annual expenses is required. This may be prepared by yourself and/or verified with bank account details; and details of debts including current loans and credit cards. Your lender will specify the details required but it can be a good idea to get your paperwork and documents ready in advance.

For loans which are secured against the vehicle, that is, secured loans, the lender will request you take out comprehensive insurance. In order to finalise the loan and allow you to complete the sale and take possession of the car, the lender will require proof of an insurance policy. For unsecured loans, car insurance may not be requested.

It is subject to individual lender requirements and their assessment of your loan application but in most cases, the car loan can cover the full purchase price of the car. Some dealers may advertise this as no deposit finance. Lenders usually only request a larger deposit be paid for some new and used cars and/or based on individual risk assessment. If you do choose to pay a deposit to the seller, this will reduce your total loan amount (compared with borrowing 100% of the purchase price) and as such reduce your monthly repayments.

Yes. This is done with a pre-approved loan. Pre-approved loans are available across the full portfolio of personal loans and business vehicle finance products from most lenders. Deciding on a car and doing a deal with a seller and then applying for a loan is considered the usual way to go about organising car financing. But benefits can be realised by organising the finance before you even look at cars and pre-approved loans are very popular. The process to secure a pre-approved loan is essentially the same as for applying after you’ve finalised the car deal. The pre relates to prior to finalising the car sale. You contact a lender or broker and request a car loan quote based on an estimate of what you think your car may cost. Your lender proceeds through to source you a quote and on acceptance of that quote, process your application to the approval status. You can then proceed to buy the car and the loan is completed when the exact loan amount based on the final purchase price is known. If you secure a pre-approved loan, there is no obligation to proceed. If you change your mind and decide not to proceed with a car purchase. Pre-approved loans have a use by date and the lender will advise you of when yours expires at time of applying.