Find The Best Car Loan In Australia
There are so many different options for Car Loans in Australia. So, what are the differences and how can you secure the best deal?
At LoanBay we have access to 22 different lenders and over 55 different Car Loan products. Because we receive updates from each lender every day, we know who has got the best deal today. Our Lending Specialists work with you to understand your situation and recommend the best Car Loan for you.
So, let’s look at what makes a great Car Loan and how to secure one.
Personal Versus Business Use
We can help you secure a great Car Loan for either personal or business use. There are certain tax benefits for purchasing a car through your business.If you do run a business you should read the information here for more information. The information below still applies for either personal or business use.
How Does A Car Loan Work?
A Car Loan is a normal loan where the loan purpose is to purchase a car. You borrow a certain amount of money for the car and repay the loan over time, usually between 1 and 7 years. The loan has an interest rate and you normally repay the loan as principal and interest in the same weekly, fortnightly or monthly repayment. The principal part of the loan is the actual loan you are repaying. The interest covers the costs to the Bank for providing the car Loan and of course forms part of their profit.
Am I Eligible For a Car Loan?
You are eligible for a Car Loan if you are an Australian resident or ABN holders, you are 18 years or older and you have an income of some description, other than social security.
Are There Different Types Of Car Loans?
There are two main types of Car Loans, secured and unsecured.
A secured Car Loan is a loan where your car is taken as security by the Bank. If you don’t pay back the loan, the Bank can take and sell your car to recoup its losses.
An unsecured Car Loan does not take any security. If you don’t repay your loan the Bank cannot take and sell your car.
Secured Car Loans are normally cheaper than unsecured loans because they are less risky to the Bank.
How Much Does A Car Loan Cost To Set Up?
Each Bank has their own establishment fees for setting up a Car Loan. These vary significantly between Banks and your LoanBay Lending Specialist will be able to advise you the cheapest options for you.
Can I Pay Out My Loan Early?
Some Banks let you pay out your Car Loan early, and some don’t. Normally, your interest rate is fixed for the life of the loan. Because you are contracted to the Bank for an agreed term some Banks consider that they will lose money if you pay out the loan early, so they charge an exit fee. Again, your LoanBay Loan Specialist will be able to advise you of the best option.
What Is A Balloon Payment?
A balloon payment (sometimes called a residual) is an amount owed at the end of a loan contract. It is used to reduce the weekly, fortnightly or monthly repayments so the loan is more affordable throughout the loan term. You can pay out the balloon payment in cash at the end, or trade the car in. If you trade your car in for a new car at a car dealer, if you owe more than the car is worth at the end, they may be able to finance the difference into the new Car Loan.
How Do I Apply For A Car Loan?
It is important to talk to a LoanBay Lending Specialist so we can give you some good advice based on your exact circumstance. Our approach will vary depending on your situation and we will explain each step to you over the phone. Once we have decided on which Bank to apply through, we will submit your application with all the correct documents. We will manage the entire process through to you receiving the funds.
Why Should I Go Through LoanBay?
As finance brokers, we have access to Car Loan deals from 22 lenders. Some of the loans we have access to are not advertised to the public, they are for brokers only. We deal with the exact team within the Banks and will shop it past them before we submit the application. Our Car Loan application process is quick, easy and you are guaranteed to get the best loan on the market.
I Would Like To Apply For A Car Loan
We would love to help you find the best Car Loan in Australia. Call a LoanBay Lending Specialist on 1300 11 70 30 to discuss your needs.