Financing A Brand New Car
Updated: Apr 4
Are you in the market for financing a brand new car?
In this article we're going to share some things you should know about before financing that new set of wheels. After all, who wouldn't want to be presented with a range of finance options to decipher the most suitable one?
Similar to purchasing a home, car finance allows you to purchase a new car without having to save the whole deposit. It's an alternative to paying upfront cash. With car finance, buyers pay off the loan over the period of time that a lender gives you. Generally, car loans span from 2 to 7 years in length.
When you finance a car all ownership is prescribed to you. However, if repayments are not made or you default, the lender has the right to possess the vehicle from you. When you pay off your loan, the interest of the lender ceases.
Consulting A Finance Specialist/ Broker For Car Finance
When applying for car finance, it's incredibly important to understand your lending options. Many car dealerships will provide you with their preferred financing group. If you agree to take up their preferred lender, your financing options become limited. This means that you miss out on discovering other suitable options and resulting in you paying a higher rate of interest.
If you know what brand and car model you would like to purchase, we recommend first consulting a finance specialist or broker. REIF Finance Specialists are fully qualified in car financing. Brokers have access to a large range of lenders who are able to assess your circumstances fully to source you suitable finance options for your car loan. They may even be able to negotiate with the dealer, directly.
An added benefit of consulting a finance specialist when applying for car finance is that they can arrange a pre-approval for you. This can fast-track your buying process, and in most circumstances, get you in your new set of wheels that day!
How often are you required to make car loan repayments?
This is dependant on the lender and your individual circumstances. Generally, most people opt to make monthly repayments to their car loan. You can also pay weekly or fortnightly.
What is a balloon payment?
A balloon payment is a lump sum paid to the lender at the end of your loan period.
What information do I need to provide for financing a car?
To finance a car, you need 100 ID points. You also need to provide all supporting details of the vehicle you are purchasing, proof of income and information on your other assets and liabilities. For more information, we recommend consulting your broker.
Get Into Your New Car Sooner
If you're looking to finance a car loan anytime soon, reach out to our qualified team of Finance Specialists. Here at REIF, we deal with a large range of simple and complex lending. With access to over dozens of lenders, we will be sure to source the most suitable finance option for you and your needs.
To get in touch, feel free to reach out on the details listed below.
Ph: 1300 130 932