As interest rates and the costs of living generally continue to rise, many people are feeling the pressure and that may, in some instances, lead to making unwise choices especially when seeking car loans to purchase a car. Scams are rife in many areas of life and buyers of cars and finance should be aware of these situations and any risks.
As rates rise, buyers should beware of scams as affordable car loans with better rates can be sourced through licensed credit providers such as Jade Car Loans. Following the recent Scams Awareness Week, we thought it was timely to remind car buyers and car loan seekers of some of the guidelines and resources available to consumers to assist in making wise decisions around purchases and finance.
Be Scam Aware
Scams Awareness Week was 7-11 November and the ACCC urged Australians to learn more about how to spot scams. There is a wealth of resources available on the ACCC website.
Buying Used Vehicles
Many car buyers have turned to the used car market lately due to the supply issues with new vehicles. There are many good quality used cars available and they can represent good value when purchased through reputable sources.
Used cars can be purchased from a dealer, private seller in person or via an online platform. Used motor vehicle dealers are usually licensed members of the Motor Traders Association and that can be verified. Referring to online reviews may also assist in ensuring the dealer is reputable.
If purchasing a car online, follow due diligent and smart buying guidelines. Checking Vin numbers and PPSR to see if the vehicle is under finance, and doing rego checks are just some of the basics to safe buying on online platforms. Always check guarantees and consumer warranties and see if the selling platform offers any buyer protections.
For buyers of used vehicles requiring finance, used vehicles can attract a different interest rate than the rate advertised by most lenders. Unless otherwise specified, the best car loans interest rates advertised are for new goods. Prior to committing to a purchase, buyers can contact us for a quick quote so they are well aware of the interest rate and car loan repayments before buying.
Just a note re current used car market prices. The limited supply situation in the new car market due to pandemic issues and computer chip shortages over the past two years has led to a surge in the used car market. Reports have been seen of prices also surging to above the price of new. Keep that in mind while viewing the market.
Is the finance offer ‘too good to be true’?
How good is ‘too good’? We’re referring to zero interest rate car loans. Our view, and the view of many other motor vehicle finance lenders, is for buyers to avoid or at least thoroughly scrutinise any offers of 0% interest rate car loans.
The 0% interest rate is often used as a promotional ploy to attract customers. The no interest rate offer usually only lasts for a very short time – possibly 3-6 months of the total multi-year loan term. After that period expires a much higher than market interest rate can be applied. That much higher rate can make the entire loan extremely expensive compared with what could be secured. Read the fine print, ask questions and look closely at the fees and any exit penalties, which may be exorbitant.
At Jade Car Loans we have a policy of better rates for cheaper overall loans which are sourced and structured to meet the requirements of each customer. Car buyers are welcome to speak with one of our consultants for a car loan quote to compare with any other offers received and discuss any queries.
Consumer Finance Information
Consumer finance, included car loans for private buyers, is regulated and governed under the law through ASIC. All lenders providing consumer finance, including Jade Car Loans, must be Licensed Credit Providers and adhere to Responsible Lending Guidelines. When considering a loan offer, buyers can refer to ASIC to check the status of the lender is genuine.
Under these laws, licensed lenders cannot make loan offers which are unsuitable to the loan applicant.
Jade is a finance-broker style lender and a member of FBAA as assurance for our customers that you are dealing with a reputable and licensed company.
Options for Genuine, Better Rates and Cheaper Car Loans
It is no secret that interest rates have been increasing significantly over the past seven months as the RBA normalises the cash rate to pre-pandemic rates and works to bring inflation down. Banks and lenders, including those offering motor vehicle finance lenders will typically react to RBA rate rises with their own rate changes.
But these rate changes can vary across the market as it is up to the guidelines of individual lenders. So interest rates on car loans can vary significantly across the market. Even a seemingly small difference in the interest rate can represent a meaningful difference in monthly repayments, especially at a time when many household budgets are under pressure. The differences that the interest rate makes to repayments can easily be seen by referring to our commercial car finance rates
We assist car buyers to source the cheapest rates from across a vast section of the motor vehicle finance market through our accreditations with many banks and non-bank lenders. We do that hard work and deliver car loans quotes that are suited to the needs of our customers and have been negotiated individually to the cheapest rates.
Car buyers seeking finance can enhance their prospects of receiving a better car loans offer by maintaining a good credit score. Details on credit profiles and reports can be sourced at Moneysmart.
While there are inflationary pressures currently impacting many individuals and households, affordable and cheaper car loans can still be possible through reputable and proven lenders.
Contact Jade Car Loans at 1300 000 003 for cheaper car loans
DISCLAIMER: IN REGARD TO MISREPRESENTATIONS AND ERRORS CONTAINED IN THE MATERIAL AS PRESENTED, LIABILITY IS NOT ACCEPTED. THE DETAILS AND CONTENT IS PROVIDED FOR CAR BUYERS AND INDIVIDUALS AND BUSINESS SEEKING FINANCE PURELY AS GENERAL INFORMATION. THIS IS NOT PROVIDED AS THE ONLY SOURCE OF FINANCIAL INFORMATION. ANYONE THAT CONSIDERS THAT NEED FINANCIAL ADVICE ABOUT THEIR SPECIFIC REQUIREMENTS SHOULD SEEK THEIR OWN FINANCIAL ADVISOR.