Looking For Car Finance based in Brisbane?
One of the biggest mistakes made when buying a car is not including the add-on cost that comes when getting a car through financing. Whether a second-hand vehicle or a brand new one, it is essential to include the total cost of car finance in Brisbane to the total price needed to pay.
For example, if you are looking at buying a Mazda CX-5, you have to carefully ask the difference in the cost of the car based on the sticker price and the dealer’s price. The difference may be about $1500 and if you know how to deal with it, it is possible to save at least $1000 dollars from the total cost.
Car financing means buying the car at your financial convenience. Although there might be an interest of about 6.33% per annum, it won’t make much of a difference in the total cost of the car. However, a higher interest than that might make a dent, so it is best to ask how much interest the financial institution charges.
Buying a car is in itself an investment, so it is important to think about it before making the purchase. Here are some tips to help save on cost.
Get your credit rating up!
A credit score is a number that is calculated based on the information on a credit report. It helps car finance lenders to know how responsible a potential buyer is to lend to. Do you pay your bills on time? Do you pay in full or only part of what you need to settle? Your credit score is a number between 0 and 1200 — the higher the number the more likely of getting approved.
Your score is calculated from current situations and past behaviours, including credit limits, repayment history, and overdue debts. How often you’ve asked for credit and the kinds of loans or credit you’ve applied for, the frequency of your credit applications, and several other factors are also included in the calculation of your credit rating. If you are meaning to buy a car through car financing, it is best to get your credit rating up before you do.
Determine a budget before submitting applications
Working out a weekly, fortnightly or monthly budget that is affordable not only today but into the future will help with keeping on top of car finance repayments. Knowing the amount that is affordable to pay will help with managing finances well. Before making a huge purchase like that of a car, it is best to know where the budget for its payment will come from. When working out a budget factor in any future increase of costs of living or unpaid holidays you might take down the track.
ApprovalBuddy has a FREE loan calculator http://www.approvalbuddy.com.au/loan-calculator/ to help determine the repayment amount affordable to each individual and how long the loan term will be. In most cases, the loan term is not fixed so extra payments can be made to shorten the term of the loan and pay it off quicker. But there may be some early exit fees or break costs to pay for as well. In most cases, these costs will outweigh the interest you will save from finishing your car finance early!
When searching for car finance Brisbane, get as much information as possible, but don’t apply with credit providers that do up front credit checks. These checks will be marked on your credit file which in turn can lower your credit score. It will show the number of times you have applied and have failed to make the cut for the loan to be approved.
This could be very bad for your credit history. Here at Approvalbuddy, we don’t do credit checks until after we’ve run through your application with you and know that we can help to get you approved on a second car in Brisbane. We value your current and future investments, thus we make sure that we only check on your credit rating when we see that you can really make it. If during the initial interview and investigation, we feel that the answers might not be positive, we give you advice on what can be done instead. In that way, your credit score won’t be tainted at all.
Put a deposit down only when absolutely sure
A deposit is not a must but can help with getting approved on a second-hand car in Brisbane. It reduces the risk to the car finance lender to lend money. Whenever applying for car financing, the lender will look into your credit history, the payments you paid and those that you missed. The outstanding balances held with other lenders are also reviewed by potential lenders as these could help in determining whether you are a good borrower or not. Lending money is an investment for the lender, that’s why they want to make sure the loan amount is affordable and will be repaid today and in the future. A deposit can be made up of two things, cash deposit or a trade in.
Here at AprovalBuddy, 95% of the car finance in Brisbane is no deposit car finance. However, if you wish to make a deposit to lessen the amount of the loan, that can also be done. Our team will help you calculate the cost of the car with the financing minus the deposit. Paying the deposit up front can really pull down the overall cost of the car.
Avoid Payday loans
Although tempting, it is important to take a step back and think logically about what a payday loan actually means. They are promoted as smart small loans but car finance lenders and banks think otherwise. Some car finance lenders & banks won’t consider an application if there is even one payday loan active upon application.
Such small loans can appear as if there is more expenditure than incoming which is damaging for credit ratings. When lenders enquire about any credit file, they will see how many payday loans are active and how much is outstanding. It is best to avoid payday loans as they can also hurt your budget big time. They rob you of the financial ability to make purchases in cash whenever you wish too.
Buying a car is undeniably convenient. Whether it be for business use or personal use. Scooting around town for work or carting kids to and from school, it is nice to be in a car. Not only does it save on time and effort, but it also takes away the worry of public transport, which can be unreliable at the best of times. However, buying a car comes with great responsibility. Establishing affordability status is vital before buying.
When it comes to car finance in Brisbane, keep these smart tips in mind. This will help with calculating on costs and whether or not a loan is affordable at this time.