Planning to buy a car in Queensland? Head out to a Mitsubishi, Hyundai or Ford dealership Brisbane has and get the financing option that suits your needs and paying capacity. Through competitive car finance, the burden of buying a car is lifted off your shoulder. Moreover, payment terms are spread over an agreed period at rates that you can afford.
For the best deals, there are important pointers to remember. Doing so will protect you from legal problems or having your vehicle repossessed.
What to remember before applying for any car finance?
Car financing or loan is not just about borrowing a lump sum of cash and paying it monthly. You should know more about this complex deals to avoid any worries after the purchase.
Secure your own finance
While it’s convenient to simply borrow the whole amount from a dealership, it’s best to combine dealer financing with a separate car loan. This way, you have the option to borrow the least possible amount from a lender with the higher interest rate.
For example, you want to buy a $30,000 car from a Mitsubishi dealership Brisbane centre. Then, the dealership offers a loan with 9.7% interest rate that you can pay for 5 years. If you will borrow to pay half of the price, you should pay around $1,705 each month. But if you will only borrow $10,000 and pay the remaining $20,000, you only have to prepare a monthly payment of $1,137.
Know what you can afford to own
It’s important to know the price range of the cars you want. But you should prepare for expenses in owning one in Brisbane as well. You should weigh maintenance, repairs, fuel, road tolls, insurance and annual registration among other expenses. Note that a car loan can cover some of those expenses such as the Compulsory Third Party Insurance.
Some of those depend on the car you plan to buy. For example, your fuel expenses will depend on the fuel economy of a particular model. Thus, buying a hybrid unit from Hyundai dealers Brisbane Southside centre can help you save on fuel cost.
Boost your credit ratings
Lenders trust people with high credit ratings. Thus, you should boost your points to get car loans with lower interest rates. You just need to pay all your credits, debts and loans around 6 months before applying for car finance.
At the end of 2017, you should have an average of 713 credit ratings to get a loan for a brand new car. But you can get a used car with a 656 score. However, 20% of the lenders can give you a chance when you have below 600 points. And 4% of them can consider people with scores less than 500.
Shop around for the best car finance
This type of car finance has a fixed interest rate throughout the life of a loan. Thus, you can expect what to pay each month. You can also make advance payments to repay the entire loan earlier. But if you do so, be careful of early termination fees.
This car loan involves putting an asset as a security for the loan you get. For example, if you buy from a Ford dealership Brisbane centre, you can offer your new Ford car as an asset.
When you’re unable to pay the loan, the lender can repossess your car. You need to pay additional amount when the depreciated value of your car isn’t enough to cover the loan.
This type of loan won’t require you to offer any asset the lender can repossess. But this usually comes with much higher interest rates. And failing to repay this loan often leads to financial lawsuit on court.
Aside from common loans, car financing in Queensland also offer leasing. A lease Ford Queensland dealership has, for example, allows you to rent a car for an agreed period. Depending on the contract, you need to return the car after the period. But you can choose one that lets you own the car upon finishing a lease as well.
Find a dealership that offers competitive car financing
Be sure to get the best car financing that you can repay. Look for a dealership in Queensland that offers reasonable car loans.
Not sure where to find one? Check out ScenicMotors.com.au, a reliable Hyundai, Mitsubishi and Ford dealership Brisbane centre that offer competitive car finance.