When purchasing a brand new car, you would have the most finance options available, which should allow you to get a great deal on your car loan.
Each and every lender works differently in how they would apply interest rates to car loans, where some will apply a different interest rate for a new car, which is often cheaper, and a slightly higher rate for a used car, 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, otherwise they wouldn’t use it as security and some lenders are very restrictive on how you buy the car, whether it be dealership sale, auction or from a private seller.
As none of these restrictions are in place when purchasing a brand new car, the options of lenders should be much greater, allowing you to compare more lenders side by side and ensuring that you can get a great deal.
With so many lenders in the market, buying a brand new car makes it easier to get the loan that suits your personal circumstances, your overall objectives and requirements and should allow you to get the right loan, with the most the features and benefits you’re after, still with a great rate without having to compromise too much.
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.
You will also have options with a lot of lenders to request for a balloon payment at the end of the term to reduce your repayments as an option, 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.
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