Car Loan – Looking at purchasing a New or Used Car? Let us help you achieve your goal for a quality car loan as cheaply and efficiently as possible.
Need Finance offer fast professional service whether it be to buy a Car, Motorbike or a Boat – Everyday – we will assist you to get the item sooner and with no fuss.
Car Loan – Need Finance – Here is why you should call us today –
The array of car finance options can be overwhelming. The quick guide below is designed to help you understand the main options available.
What else is there to consider? When selecting a car loan, you may wish to consider the following –
Deposit – Most of these loans don’t require a deposit. However, if you do have savings available for a deposit you could choose to reduce the amount you need to borrow or purchase a car of a higher value.
Term – Generally this relates to the number of years the loan is to be repaid over.
Typically this can be from two to seven years. Extending the time frame will reduce your monthly repayments which may help with cash flow but can increase the total amount of interest payable over the course of the loan. Most financiers offer a range terms to suit your needs.
Balloon / final payment: You can reduce your monthly repayments by having a final balloon payment
Again, the balloon will mean you will pay more interest over the course of the loan. If a low monthly repayment is your goal the balloon is good and if low interest charges are your goal, then it is not ideal.
Comparison Rate: The comparison rate is the annual interest rate taking into account additional costs of the loan such as monthly servicing fees.
You will see the comparison interest rate displayed as a % figure such as 8.5% along with the headline interest rate on advertisements for loans and finance offers.
Payment arrangements: This refers to whether repayments on your loan are due weekly, fortnightly or monthly.
Secured Lending Vs. Unsecured Lending –
Secured car loans are loans that are secured against an asset such as equity on your home or your car.
In the case of secured loans it is often the car itself that acts as security for the loan. Most of the car loans that we offer are secured and this is because the Banks and Financiers offer lower interest rates than with unsecured loans.
A point to note is that If you choose to sell your vehicle before the loan term has ended you would be required to repay the remaining balance in full.
Unsecured loans as the name suggests are not secured against anything.
They are provided on the basis of your income, financial situation and credit assessment conducted by the finance lender.
Generally with unsecured loans you can actually use the money on what you wish and it is not locked down to the car you buy. For example, you could use the money for one car, sell that in a couple of years and buy another car without impacting the loan.
Whichever way you choose, Need Finance will help you get there quicker.
Call our Need Finance specialists on 1300 633 334 for a great rate and low repayments.