Want to save money in the long term?
It will more often than not save you significant money over the life of your loan if rather than buying the cheapest car you can afford with your hard earned savings, you take out a loan for a new car with repayments that comfortably fit within your budget. You get to keep your money in the bank for emergencies, or that family holiday you're saving for, and you will significantly reduce your risk of having to pay unexpected maintenance costs .
Need a car for getting from A to B?
If you are on a budget, and just need a car to get you to work each day or drop the kids off at school, quite often going for the cheapest option can end up costing you a lot more in the long run, due to their higher fuel and maintenance costs.
Want a car with low running costs?
Although there are many cars on the market that can be bought with cash quite cheaply, usually these cars are cheap because their running costs are much higher. By taking out finance for a car you might not be able to afford with cash, you could be saving yourself moneyin the long run by reducing your maintenance and fuel costs.
Want peace of mind?
Once you’re comfortable with your monthly repayments for your loan and comprehensive insurance (all of which we can assist you with). You can have peace of mind knowing that you won’t have unexpected expenses to keep your car on the road and keep your life running on time. We can even extend the manufacturer’s warranty for you to ensure peace of mind for an even greater period if you don’t plan on upgrading your car once the manufacturer’s warranty expires.
If you are an employee, as opposed to being self-employed, then you will most likely benefit from taking out a consumer car loan.
The lender pays for the car on your behalf, you have a fixed minimum monthly repayment consisting of principal and interest payments calculated on a daily reducing, fixed interest rate model.
You own the car in your own name from day one, however the lender has an encumbrance over the car until the loan is repaid.
The main benefit of a consumer car loan, is all consumer loans are governed by NCCP (National Consumer Credit Protection act). The NCCP has strict guidelines in place to protect you as a consumer.
One particularly useful one for consumers is, the heavy restrictions regarding how much a lender can charge as an early exit fee if you pay off the loan early.
If you’re self-employed, and purchasing a car primarily for business use, you can consider taking out a Chattel Mortgage.
It has a very similar structure to a consumer loan where the lender pays for the car on your behalf, you have a fixed minimum monthly repayment consisting of principal and interest payments, and your business owns the car from day one whilst the lender holds an encumbrance over the car until the Chattel Mortgage is repaid.
You will generally be entitled to claim the interest expense on the loan, the depreciation on the car, and all running costs as well as a tax deduction, depending on the portion of business use you’re claiming.
If your business is registered for GST, the full GST component of the car purchase is claimable as an input tax credit the your first BAS following the purchase. Most lenders also allow “low doc” loans for businesses.
As financials of a business can be quite complex in some circumstances, and a business’s performance on paper isn’t always reflective of its true performance, many commercial lenders offer loan products where no financials are required at all, providing you meet certain guidelines.
Call one of our consultants today to find out more.
We hear it all the time. When people shop around for finance, they call up a range of brokers and finance companies and ask, “What is your rate?”
Although interest rates are an important factor when it comes to comparing loans, it is only one of many factors.
The lowest interest rate isn’t always the best deal. There are many dealerships that offer 0% finance options that prey on people who only focus on rate.
These 0% finance offers usually have very restrictive terms, but most importantly, they will usually charge you more for the car than they would if you weren’t taking the 0% finance.
The important thing when comparing is to look at the overall package. All lenders have different set up and on-going fees and different early exit fees as well.
The main thing to focus on is your bottom line. Your monthly repayment, inclusive of all fees, is the best indicator when comparing.
At Credit Capital, with access to more than 25 of Australia’s major automotive finance lenders, we compare more so you save more.
We are independent and privately owned, so give unbiased advice when it comes to getting you the best deal.
We work for a flat service fee which is included within the set up costs of your loan, and the fee doesn’t change if we attain a higher or lower interest rate for you.
This makes it very easy for you to compare our repayment with others to see which deal is best for you.
You don’t pay anything up front, and the fee is only applied if you get a loan through us, meaning if we don’t earn your business, we don’t get paid. This makes it in our best interest to get you the best deal, every time, so we can earn your business for life.
It’s a saying you’ve probably heard so many times by now that it’s almost lost all meaning.
But when it comes to finance, the interest rate the lender applies varies based on the risk of the application.
The higher risk the application, the more likely you are to default, or the less likely the lender will be able to recover their loss if they have to repossess the car, the more the lender has to charge to offset their risk.
To lower your interest rate you need to lower your risk. There are many factors that lenders look at when calculating the risk of your application.
How long have you been in your job? Are you full time employed? Part time? or casual?
Residential history is important as well. Whether you’re renting, boarding, have a mortgage, or own your property outright, are all taken into account by the lender to calculate your risk.
Some factors you won’t have much control over, there are some things though that you can control.
Before approaching any lenders or searching for cars, the most important thing for you to know is how much you can afford each month for your car. This includes not just the repayment for the loan, but also your insurance and running costs for the car as well.
Whether you have a specific asset in mind, or just a set of requirements you needs to fulfil, everyone has different wants and needs when it comes to taking out finance. The more you can let us know about what you want or what you need, the better we are able to fulfil your dream.
When it comes to taking out finance, there is no such thing as too much documentation. We will always strive to make the process as smooth as possible with the minimum amount of documentation, however, the more prepared you are, the quicker we can make the process for you. Be prepared with IDs, residential and employment histories, payslips, or tax returns and profit and loss statements if you’re self-employed. The more prepared you are the more efficient we are.
Once you know the above, enquire online or call us directly and we can help you with the rest. If there’s anything above you need assistance with, not to worry, our devoted team can answer all your questions and find the deal that best suits your requirements. We can guide you along the way no matter how early, or late, in the process you are. We put your mind at ease and make finding the best deal easy from start to finish.