Looking For Car Finance based in Brisbane?
One of the biggest mistakes that people make when buying a car is the fact that they don’t include the add-on cost that comes when they get the car through car financing. Whether it is a second-hand vehicle or a brand new one, it is important to include the total cost of car finance in Brisbane to the total price that you have 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, you might be able 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 bent, 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 that you think about it before you make the purchase. Here are some tips to help you save on cost.
Get your credit rating up!
A credit score is a number that is calculated based on the information on your credit report. It helps car finance lenders to know how responsible you are 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 — higher the number the more likely you are going to get approved.
Your score is calculated from current situations and past behaviors, including credit limits, your 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 your budget before applications are submitted.
Working out a weekly, fortnightly or monthly budget that you can afford to pay not only today but into the future will help you keep on top of your car finance repayment. Knowing the amount you can afford to pay will help you manage your 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 your budget factor in any future increase of costs of living or unpaid holidays you might take down the track.
You can use our FREE loan calculator http://www.approvalbuddy.com.au/loan-calculator/ to help you determine the repayment amount you can afford and how long the loan term will be. In most cases the loan term is not fixed so you can pay extra repayments to shorten the term of the loan and pay it off quicker. But you might have 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 you can, 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 you are absolutely sure.
A deposit is not a must but can help you get approved on a second-hand car in Brisbane. It reduces the risk to the car finance lender to lend you money. Whenever you apply for car financing, the lender will look into your credit history, the payments you paid and those that you missed. The outstanding balances that you have with other lenders are also reviewed by potential lenders as these could help them decide whether you are a good borrower or not. Lending you the money is an investment for the lender, that’s why they want to make sure that you can really afford to pay them 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
Have you ever been offered a payday loan? Although these offers of loans can really be tempting, it is important that you take a step back and think about what you are getting yourself into. They are promoted as smart small loans but the car finance lenders & banks think otherwise. Some car finance lenders & banks won’t consider your application if you have one payday loan currently active when you apply.
More so if you apply for the car financing and you have an outstanding number of payday loans. Such small loans make you look like you are spending more than you can afford and that’s bad for your credit rating. When these lenders enquire about your credit file, they will see how many payday loans you have and how much you still have to pay off. 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 something that most people want to make because of the convenience that it comes with. When you go around town for work or for family, you would want to be driving your own car. Not only does it save you time and effort, but it also allows you to be at your most confident, not worrying about how you’re going to get home at the end of a tiring day. However, buying a car comes with great responsibility. You must be able to establish that you can afford to pay for the loan before you even apply for it.
When it comes to car finance in Brisbane, you have to keep these smart tips in mind to help you calculate on costs and whether or not you can afford to make a loan at this time.