One of the recurring topics in the motoring media recently has been the significant increases in pricing for some makes and models of popular cars. Price increases which in many cases come as a surprise to potential buyers and cause a rethink. Should they pay the extra to get their first choice or seek a cheaper priced make or model? One solution for buyers that intend to purchase a new car with finance is to look for cheap car loans to offset the increase in the price of new vehicles.
The reasons for manufacturers increasing their prices can of course vary. It may be due to upping the inclusions with new tech and safety features, the costs of production and external factors outside of their control. The shortage of computer chips over the past year and production hold-ups as a result of COVID-19 may also be having an impact on manufacturer’s costs. For Australian buyers we also have that tyranny of distance issue. With shipping costs on the increase due to global events, the cost of getting motor vehicles from overseas manufacturing hubs to Australian dealerships is sure to have increased.
So as the price goes up, buyers need to be savvier in sourcing their finance to make that increased price tag an affordable purchase. Jade Car Loans provides hints and tips on how to achieve cheap car loans to make that price increase on the car you want, workable.
Focus on Payments not Prices
When buying a car with finance, the more pertinent dollar figure to focus on can be the monthly loan repayment rather than the dealer-quoted price for the car. After all that is the amount that the buyer will be paying out each month.
Buying tools are readily available to give buyers an indication of how car prices convert to car loan repayments. The Car Business Loan Calculator is a must-have for car buyers. This device allows users to derive estimated repayments on any vehicle at any price and any time.
Simply enter the anticipated price of the car if seeking no deposit finance or the amount required in the loan, along with the relevant interest rate and preferred term and the repayment estimate is displayed.
Cheap Interest Rates
Apart of course from the total loan amount, the business car financing rate is by far the key to focus on when seeking a cheap car loan. The interest on a loan is the single largest cost of borrowing money. So the lower the rate that can be achieved, the less paid overall on the loan and the lower the monthly repayments. Essentially, cheaper interest rates can significantly offset those vehicle price increases.
Interest rates vary across the motor vehicle lending sector. While the RBA sets the official cash rate, individual banks and lenders will have different costs of acquiring their funds and will price their loans differently.
For private car buyers seeking a Secured Car Loan, we have prepared an interest rate comparison chart which shows the loans and interest rates available from Jade Car Loans and several other lenders. By inputting the amount of the loan required, it can easily be seen how the interest rate significantly impacts the repayment estimate.
For business buyers, the interest rate differs for different finance products. We’ve prepared a guide to show our current low rates across our loan portfolio. Immediately selecting the cheapest rate finance – Chattel Mortgage, may appear simple common sense. However, the full package of benefits to a business of finance product should be assessed in consultation preferably with the business accountant.
Varying Loan Terms
While achieving the cheapest interest rate can deliver the cheapest car loan, varying the loan term can deliver a lower monthly repayment. Use the calculator to see the effect of terms on repayments.
The loan term is not always a negotiable issue with all lenders. Some lenders will have strict guidelines around the number of years they will approve based on their risk assessment of the borrower, the age and condition of the vehicle, the loan amount requested and their own loan approval criteria.
Having a Jade Car Loans consultant negotiating the loan can be a great benefit in achieving the desired loan term.
Getting a Cheaper Car Loan
While Jade Car Loans focuses on achieving better interest rates and cheaper car loans for our customers, there are a few actions that prospective buyers can take prior to applying which may increase their prospects of a cheaper loan.
Lenders will review the applicants credit profile and rating as part of the approval process. Interest rates advertised are, unless otherwise stated, for good credit profile applicants. Individuals and businesses can request a free copy of their credit report and take steps to fix any errors to improve their rating.
Reducing debt is another step. An assessment of income and expenses also forms part of the approval process. So paying off other loans including credit cards, can improve the individual’s balance sheet and may contribute to more amenable terms and eventually a cheaper car loan.
To improve their prospects of getting a cheaper car loan, savvy buyers will also engage the services of experts to assist. Jade Car Loans are experts in motor vehicle finance and work with both business and private buyers, handling the entire loan sourcing, negotiating and settlement process.
So if the price of the car you want has gone up on the 2022 models, contact us to discuss how we can offset that increase with a cheaper car loan.
Contact Jade Car Loans on 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.
