You may have held off upgrading your vehicle in 2024 hoping for the RBA to cut interest rates or waiting for a new model to arrive. With no definite decision on when rates will be cut, perhaps it is time to get on with your purchase. Deferring the buying decision while waiting for a rate cut, may result in an increase in the price of the latest models. There are issues that buyers can consider and address themselves to ensure they do achieve the best new car loans.
Being well-prepared and well-informed may contribute significantly to being offer the best rates and most workable finance terms, and result in the most affordable motor vehicle finance. Jade Car Loans outlines what buyers should address prior to selecting a vehicle and applying for finance, in order to secure the best new car loans.
Eligibility for Best New Car Loans
To know what to address to ensure the best finance is achieved, buyers should be aware of the eligibility requirements and the criteria used by lenders to approve applications and offer the best rates and conditions. Approval guidelines can vary with different lenders.
To be eligible for a personal loan, applicants must be over 18 years of age and provide details of income, employment, residential status, assets and liabilities and other financials. To be eligible for business vehicle finance, applicants must have an ABN and ID. Financials on the business are requested, but we do have opportunities for new operators with ‘no financials’ vehicle finance available. This Low Doc and No Doc Finance may suit new operators, ABN-only holders, and many micro businesses and sole traders.
Checking the requirements for your application and preparing documents ahead of applying, may streamline the application and approval process.
The credit profile is critical with the good credit scores attracting the best interest rates. Borrowing capacity is the amount that a lender will approve to loan to an individual. This may determine the vehicle you select and/or the deposit you may need to make.
New Car Loans – Finance Options
Different types of finance products apply for private and business vehicles. A Secured Car Loan will generally be the most suitable credit facility for buyers of new vehicles for personal use. The vehicle is accepted as loan collateral, higher borrowing limits may be approved, and rates are lower than for unsecured finance. Businesses have the choice of Leasing, Chattel Mortgage and Commercial Hire Purchase. The decision as to the most suitable depends on the accounting method used by the entity and the financial objectives. Tax deductions are available on all commercial credit facilities.
New Car Loans – Lender Variations
The choice of lender – bank, finance company, dealer, can impact many aspects of the loan. Interest rates vary across the lending market as do approval guidelines. Some lenders may have special loan offers for buyers of electric vehicles.
To find the best available rates and offers, buyers should be aware of the risk posed by requesting multiple quotes and making multiple applications. This may have a negative impact on the credit profile which may then result in a less than best offer.
Using a specialist motor vehicle finance broker enables buyers to have the best deal from the most suitable lender found for them from across a large lender market, without impacting their credit score. Our broker services are available Australia-wide, for both private and business vehicle buyers. We have accreditations with 80+ lenders to ensure we can secure the best available rates for each buyer.
Check Credit Profile for Best New Car Loans
Addressing the credit profile prior to applying may contribute to a better loan offer. Buyers can use the advice from Moneysmart for ways to improve their score. In addition, buyers may consider reducing their debts. Lenders will review the balance sheet, ie debts compared with assets and income, for both individuals and businesses. Owing less can improve that balance sheet and may result in a better offer.
Borrowing Capacity & Choice of Vehicle
Selecting a vehicle in line with your borrowing capacity may streamline the financing process. Applying for a loan for an amount greater than the approved credit limit, may result in the need to unexpectedly have to make a larger deposit. Prior to selecting a vehicle, buyers can apply for pre-approved finance with us and have the confidence of knowing their credit limit and having their loan approved before finalising a purchase. Allowing buyers to better set a price target for their vehicle purchase.
Comparing Best New Car Loans
While comparing vehicles to purchase, buyers can also compare vehicle finance options using our Vehicle Finance Calculator. The calculator can be used to generate estimated repayments based on different interest rates, different borrowing amounts and over different terms. Business buyers can also include a balloon in their calculations.
The calculator can make it easy to compare how much extra in monthly payments a higher priced vehicle may cost. Simplifying the selection process and potentially getting behind the wheel of that new vehicle sooner.
To secure the best new car loans, contact Jade Car Loans 1300 000 003.
DISCLAIMER: IN REGARD TO MISREPRESENTATIONS AND ERRORS CONTAINED IN THE MATERIAL AS PRESENTED, LIABILITY IS NOT ACCEPTED. THE DETAILS AND CONTENT IS PROVIDED FOR CAR BUYERS AND INDIVIDUALS AND BUSINESS SEEKING FINANCE PURELY AS GENERAL INFORMATION. THIS IS NOT PROVIDED AS THE ONLY SOURCE OF FINANCIAL INFORMATION. ANYONE THAT CONSIDERS THAT NEED FINANCIAL ADVICE ABOUT THEIR SPECIFIC REQUIREMENTS SHOULD SEEK THEIR OWN FINANCIAL ADVISOR.
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