Your guide to getting Car Finance that is right for you.
Do you have your eyes set on your first car or looking at an upgrade to fit your growing family or lifestyle change? Whatever your reason is, Australians love their cars in all shapes and sizes, therefore getting your new car is an exciting event. Sorting out your finances is an important step before making the purchase and one that Amfin will make easy for you.
What is a Car Finance?
Car Finance is obtained to buy a new or used vehicle including cars of all sizes, Ute’s, 4WD’s and so on. Car Finance can have a value anywhere from $5000 and above depending on the vehicle purchase and will have loan terms between 1 – 7 years. A vehicle loan can be either a secured loan linked to the purchased asset or an unsecured personal loan.
Your Amfin consultant will be able to navigate you through the lending landscape to ensure your find the right finance to fit your needs.
Types of Car Finance
There are two main types of car loans:
NEW CAR LOANS
New car finance can be used for the purchase of a brand-new vehicle as well as most demonstrator models. The benefit to purchasing a new car is typically lower interest rates depending on the car make and model.
USED CAR LOANS
Used car finance covers off those vehicles which are no longer considered new – and pending on the make and model can be up to 15 years old used car loans generally have a higher interest rate when compared with new car finance – however this will vary between lenders.
Both new and used car finance are forms of secured vehicle loans, should you wish to purchase a car which is not covered by one of these options, you can apply for an unsecured personal loan to cover to asset price.
Comparing Car Finance
When looking for the right car or vehicle finance in Australia, there are several factors to consider when choosing the right lender. These will include:
- Your capacity to borrow
- Interest rates offered
- Advertised Interest rate: the actual interest rate which applies to your loan
- Comparison rate: a singular figure which aims to represent the true cost of a car loan, combining the interest rate with any additional costs associated with the loan.
- Fixed or Variable
- Applicable fees
- Repayment terms, weekly, fortnightly, monthly
- Loan terms
When we look at who to finance through, we will always consider a lender’s reputation and service levels to ensure they are in line with your brief and expectations.
When you apply for Car Finance, you should have the following documents ready:
- 100 Points of ID, such as a passport or driver’s/bike license & Medicare card
- Employment details, including your employer’s name and contact details as well as copies of recent pay slips
- Financial details, including information about your assets, debts, income and liabilities
- For self-employed individuals, you will need to have supplementary financial
How long does it take for Car Finance to be approved?
Typically, approval times can be as little as 1-2 days provided the lender has all documentation required mentioned in the previous section. To achieve a quick turnaround, have these documents ready to provide to your Amfin consultant.
I have not decided on the vehicle yet, can I still apply for Car Finance?
Yes, you can still work with one our consultant to find out your borrowing capacity beforehand and even apply for a pre- approved loan.
Additionally, at Amfin we have a vehicle sourcing team which is available for your use for any new or used car purchase. It is an obligation fee service – so allow us to take the hassle out of finding your new car by not only assisting with your finance but also sourcing the vehicle.
To learn more about our Asset Sourcing Service – enquire with us today and we can chat you through your scenario.
How do I apply?
If you would like to know more or need assistance determining the best equipment financing solution for you, one of our experienced finance consultants are happy to assist, contact us today.
Ready to Get Started
We have friendly and experienced team members ready to help with your finance needs, whether they be business or personal.
Experience the Amfin difference. Contact us for a no obligation chat today.