When it comes to buying a new car, most people will need to use some form of car finance. Perth residents have a great deal of choice for finance options, but it can be a little overwhelming to secure a great deal. However, these ten top tips will help you to ensure you obtain the best deal possible.
1. Do your research:
It is worth spending the time to fully research all of your options. Just as you should take the time to research your potential new car, you should look at all of the options available for your car finance. Perth residents often make the mistake of only consulting with their local bank or credit union. However, there are a number of specialist brokers who can provide exclusive access to attractive lender deals and offers.
2. Know your credit status:
While people with a perfect credit history are unlikely to have any issues with financing, most people have experienced a minor issue or two which could have impacted their credit status. Be wary of applying for car loans or finance to check your credit status as this can have a negative impact. There are a number of online resources which can provide you with a copy of your credit report. If your credit is less than perfect, you may need to consult a broker specialising in more flexible loans.
3. Be prepared to compromise:
If you have your heart set on a luxury vehicle but your income and credit status cannot support this, you are going to experience some disappointment. It is important to be prepared that you may need to make some compromises, whether this is to opt for a less expensive vehicle or put down a larger deposit to secure the finance deal.
4. Check the typical interest rates:
When it comes to car finance, Perth consumers may be surprised at the variation in rates offered to customers. This can have a huge impact on the overall cost of your loan, so it is important to be aware of the rates typically being offered in the market place. This can allow you to question why you are not being offered this type of deal, especially if your credit status would support it.
5. Don’t disclose your monthly payment budget to a dealer:
Generally, the dealership will simply modify the term of the loan to meet your requirements. This could be costly in the long term.
6. Work out your budget:
In order to be confident in your loan options, you will need to work out your budget to determine what you can afford. Most lenders will require some basic finance information about your circumstances before they can proceed with an application, so it can be a great help if you have worked it out in advance.
7. Be aware of down payments:
Many lenders do not require a large down payment for car finance. Perth consumers may find that they have more options open to them if they can put down some form of down payment.
8. Organise your documentation:
Lenders will usually require recent proof of income or bank statements. It can save a great deal of time if you have organised your documentation in advance.
9. Check the loan details:
As with any financial arrangement, you should check the details of any terms and conditions to make sure you are happy before you sign.
10. Don’t rush in:
Dealership salespeople can sometimes be pushy, but don’t rush in to any purchase. If you are not 100% certain, take time to think about it. You can always return to the dealership later.
If you require assistance with your car finance Perth residents should contact us. We specialise in brokering car loans and finance and would be delighted to help you.