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A Few Tips to Find the Best Car Finance Loan Offers

Whether you are a first-timer or a veteran, the process of purchasing a car comes with its fair share of adrenaline. It’s an exciting experience, and when done right, a rewarding journey. Financing the fresh set of wheels is a crucial part of this journey, and you’ll probably have to sift through a pile of car finance loan offers to get the right one.

But, what should be on your lookout list when browsing for suitable car finance loan offers? What’s important to you?

Here at Brisbane Finance Guru, we’ve taken time to run you through quick tips that’ll help you find the best car finance loan offers.

Look out for the Amount you are Borrowing

It’s a no-brainer to say the value of the car determines the amount of the car finance loan.

But, are you getting your money’s worth?

On most occasions, we tend to go for models that are flashier, and the more expensive fuel guzzlers. We rarely look at the cheaper, low profile and fuel efficient performers. In some cases, we end up financing the dealer’s add-ons such as extended warranties that are really not part of the car deal.

Look out for the loan amount and what you are actually paying for. Over-borrowing will strain your finances, especially when spent on features you cannot afford or don’t need at the moment.

To get a good estimate of the amount you can borrow, start by working out your monthly budget. From your monthly budget, you can calculate the amount to allocate as monthly repayment. Better still, you can have a go at our loan calculator and get quickly work out your loan amount.

Look Out for the Type of Loan

The Australian car finance market is awash with different kinds of loans. But the basis remains largely similar. Car finance loan offers are in two broad categories, secured and unsecured loans or fixed-rate and variable-rate loans.

For secured loans, lenders demand collateral which lowers their risk and in turn offer some of the best car finance rates in Australia. Unsecured loans, don’t require security. Banks make a creditworthiness judgment by looking at your financial history. They attract higher interest rates.

Fixed-rate car finance loan offers are just as they sound. The interest rate on the car loan remains unchanged for the entire loan tenure. They are good if your primary focus is to have a steady budget but are higher since the lender covers the risk of fluctuations in market rates. Also, they are inflexible to additional payments. Variable-rate loans fluctuate with the market trends. When the markets dip, you can land a low-interest car finance loan.

Look Out for Additional Loan Features

With the broad array of lenders willing to toss a car finance loan offers your way, make sure you land a car finance deal that is flexible. Here are a couple of loan features you could look out for.

Does the car loan allow extra payments?    If you take a variable-rate car finance loan offer, make sure you verify if the facility permits extra repayments. Don’t just settle for a simple yes, dig deeper and establish if there’s a maximum or other restrictions.

Do they charge for early exits? Early exits happen when you pay off the entire loan before the loan term is exhausted. Some lenders charge fees when clients opt for an early exit. Look out for loans that won’t charge you an early exit fee.

Documentation checklist for Car Finance Loans

When negotiating a car finance loan, you don’t want to keep going back and forth about which documents to have ready. Give our customer support team a heads up for comprehensive guidance on what you need to have at hand. Alternatively, here’s a quick list of the documents you need when applying for the loan:

  • Identification documents including your driver’s license and passport
  • Residential and contact details such as your address and telephone numbers
  • Certified copies of your bank statements to show your transactions and saving history
  • Records on your credit history such as credit card statement
  • Documents that can prove your income such as your pay advice.
  • Registration details of the car and the engine number.

To conclude, these tips will help you zero in on the best car finance loan offers. But you don’t have to keep browsing the web to make a decision. Contact our customer service team for exceptional car loan comparison and the best Aussie loans.