Financing a brand new car
Updated: Jul 22, 2022
Are you looking to finance a brand new car? Our finance specialists are here to support you.
In this article we'll be sharing what you should know 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 the loan off 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 aren't 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/ mortgage broker
When applying for car finance, it's important to understand your lending options. Many car dealerships will provide you with their preferred financing group. If you agree to use their preferred lender, your financing options become limited. You could 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're 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?
It's dependant on your lender and individual circumstances. Generally, 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 Real Estate Investment Finance, 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