There is always a ‘first’ for all car buyers. Most car owners will still fondly remember their first car especially the first one they purchased themselves. For some, this is a rite of passage in life. For business owners, buying the first work vehicle is a big step in building a new business. For first and subsequent car purchases, most buyers will require finance. For many first-time buyers, it will mean a first car loan.
Applying for a first car loan can be both an exciting and an overwhelming prospect. But the loan sourcing and securing procedure doesn’t have to be a challenge and any resultant loan offer made can be extremely competitively priced when a full understanding of what is involved is realised.
Whether it is your first purchase as a private buyer or your first purchase as a new business, Jade Car Loans has a range of business car finance products to suit and a lender service to assist all buyers. The type of finance differs for personal cars and business vehicles and the process and loan types can vary for those applying for their first car loan. We provide this explainer to assist those embarking on purchasing their first car and/or applying for their first car loan.
Private ‘First Loan First Car’ Buyers
A first car may be the first car in your name. Possibly previously you have ‘had’ a car or use of a vehicle but it was purchased in the name of a partner, family member, employer or a business entity. So in the records, so to speak, you would not have had a car loan in your name.
Before applying for a first car loan, it is important to appreciate that consumer finance involves strict steps and processes that are set out under Consumer Law. As a Licensed Credit Provider, Jade Car Loans adheres to the Responsible Lender Guidelines.
Under the law, consumer loan applicants must be over 18 years of age but holding a driver's licence is not an essential criterion of the application. New younger drivers (under 18) wanting to purchase their first car may have to consider a guarantor. Speak with us about how this works and how we can assist in arranging this for you.
When applying for any type of consumer loan whether the first or one of many, the lender will review the applicant’s credit profile. While this may be the first car loan application, most people will have a credit profile.
Most people will have some form of credit account from a relatively early age. Even if they haven’t applied for a loan, chances are they have held some form of credit. Credit may include agreements and other contracts entered into for the supply of services. Even for young people, these may include a mobile phone, streaming service or internet provider account, a credit card, BNPL (buy now pay later) account or a residential rental agreement.
All these types of financial arrangements will be recorded on an individual’s credit profile by the lender. Credit applications, even if not followed through with, will be recorded by the lender on the credit profile. These details along with payment history are recorded. Before applying for a car loan, individuals can check their credit report to see their credit score and history.
To find out more about credit profiles and how to get your credit report refer to the Government MoneySmart website.
First loan applicants may find dealing with the car finance market a daunting experience. This is one of the largest lending sectors with many banks, non-bank lenders and sellers actively competing for their part of the business. First loan applicants may face hurdles if they do not have a good and extensive credit history.
Using our services can assist in overcoming the confusion. Our broker style services are available to both individuals and businesses, even those that have never applied for a loan previously. We handle sourcing the cheapest quote from across our vast lender panel, negotiating with the lenders to secure the best interest rates and loan terms, assisting with the application, arranging application approval and finalising the settlement with the seller.
Good quality applicants will need proof of income as the ability to repay the loan and a good credit profile to achieve the cheapest loan offer. Our consultants work with customers to tailor the loan to suit their requirements. This may include varying the loan term or the amount requested to achieve the preferred loan repayment level. Refer to our articles on how to achieve a workable repayment amount and to our business car loan calculator to see how varying the loan elements changes the repayments.
Note that cars purchased under finance do require comprehensive insurance. So factoring that expense into the equation can be a good idea.
New Business Buyers
If embarking on a first vehicle purchase as a new business, operators may need to consider low docs car loans, No Docs and ABN car loan options. We specialise in this type of business finance which is not always available through all lenders.
Low Docs and No Docs car loans are for businesses that do not have all the criteria or financial records to meet the eligibility guidelines of some lenders. This may include not trading for the designated period.
Refer to our web pages for the features and details of these loan types. When engaging Jade to source Low Docs Car Finance, a cheap interest rate loan with workable and cost-effective repayments can be a definite reality.
To ensure your first car- first car loan is a favourable and memorable experience, contact Jade Car Loans to discuss your requirements and individual situation.
Contact Jade Car Loans on 1300 000 003 to discuss a ‘first’ car loan
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.
