So, you have your heart set on the gleaming new set of wheels in your local showroom and you are racking your brains to find the best way to acquire the car; fear not, because in this article, we outline various ways to finance a new car purchase.
- Search for an online lender – There are quite a few Australian finance companies that are happy to finance a car purchase. When you fill in the online form and click on ‘submit’, you get an answer within minutes. They require minimal information and the last thing you want is to wait a week while the lender considers your application.
- Apply for a bank loan – While this is not so common today, you can still apply to your local bank for a personal loan. Don’t expect a fast decision and you might need to show payslips for at least 6 months.
- Novated leasing – You might not have heard of novated leasing; a system that involves your employer deducting a monthly amount that covers all of your vehicle running costs. Something called salary sacrifice allows your employer to deduct an agreed monthly figure and that covers servicing, tax, insurance, tyres and even fuel. You save GST by choosing this type of leasing and if you decide to change employers, the lease can be transferred to your new employer.
- Use the dealership finance partner – Every auto dealership has a partnership with at least one finance company and they can usually accommodate customers. The interest rates might not be the lowest available and when the car has been paid off, you take over ownership. The dealership will be prepared to offer you top prices if you part exchange your old vehicle, which is what most people do. Here are a few ways that you can touch up the paint on your car.
- Regular auto leasing – Some people do not need to own their vehicle and leasing means the vehicle is maintained by the leasing company, and within a specified period of time, the car is exchanged for a new model. Many large companies lease their vehicles, which brings with it many benefits.
- Bad credit loans – If you have a less-than-perfect credit score, fear not, as there are online lenders that can find a loan package that is right for you. In some cases, you might need a guarantor; someone who will be liable should you default.
- Secured loan – If you have equity in your home, you can borrow money using the equity as security. This is likely to be the lowest interest rate and you can repay over 2-3 years. If you wish to find out your current credit score, click here.
As you can see, there are quite a few ways that you can finance a new car purchase; if you are currently in employment and can afford the monthly payments, there should be no reason that you would not be approved for a loan.
