Guide to new car loans
People purchasing brand new cars generally are offered some of the best car finance deals on the market. However each and every lender works differently in how they apply interest rates to car loans, some will apply a higher rate for used car loans compared to brand new vehicles, where other lenders may apply rates based mainly on the applicants profile and the amount borrowed against the value of the car.
Some lenders criteria would require the vehicle to be no older than a certain limit in order to qualify for a loan and some lenders are very restrictive on how you buy the car, whether it be dealership sale, auction or buying a car from a private seller.
Choose from a range of lenders
Because you can only purchase brand new cars from licensed car loan dealers you shouldn’t face too many difficulties finding a financier that will allow you to borrow money for your new car purchase.
With so many lenders in the market, buying a brand new car makes it easier to get the loan that suits your personal circumstances. Provided you’ve got a good credit history and no problems with affordability you should have a strong negotiating position to improve your chances at getting all of the features and terms you were after in your loan.
Other costs to consider
When you buy a brand new car, you would also be paying for other costs, which would include Registration, State based Stamp Duty, GST, Compulsory Third Party Insurance and Dealer Delivery Charges, which can also be financed with your new car, although be aware that these costs do not add any value to your car but do increase your loan amount.
New car loans with balloon payments
You will also have options with a lot of lenders to request for a balloon payment at the end of the term that could reduce your repayments during the course of your loan, or to possibly take the loan over 7 years. Generally buying a new car will give you the most options when financing in regards to lenders, loan structure and options to ensure you get the right car loan.
Speak to a car finance broker today
With so many options on the market for new car buyers, it could be a good idea to speak to a Finance Broker about your situation, they will be able to conduct a preliminary assessment and review your requirements against their panel of lenders.
This could help you save time finding a financier that can offer you all of the features and terms you were after in your new car loan.