Tips for Getting Cheaper Car Finance in 2023
2023 is shaping up as a popular year to buy new cars. As noted by the FCAI when releasing the December car sales figures, supply issues around availability of new vehicles in the Australian market appear to show signs of easing. For buyers that have had to defer purchase plans simply because the vehicle they wanted was not available, 2023 could be the time to buy. Most new vehicle buyers will require car finance and be seeking the cheapest car loans at the best interest rates.
Some buyers may think that any car loan offer is totally up to what the bank or the finance company is prepared to make. What buyers may not know is that actions can be taken to improve the prospects of being offered cheaper car finance and services from Jade Car Loans to assist buyers achieve a better outcome.
With inflation still at very high rates and more rate rises expected by the Reserve Bank of Australia (RBA), 2023 could be a challenging year and every effort may be worth it to reduce outgoings with cheaper car finance. As specialists in the motor vehicle finance sector, we share our tips to assist buyers achieve cheaper car finance.
Know how car finance rates are set and offered
Appreciating how lenders arrive at their car finance interest rates and how individual offers are made to buyers may be beneficial. As with most lending markets, the car finance market rates are affected by the cash rate decisions made by the RBA. Through most of 2022 the RBA has increased the cash rate each month which has led to rises in lending rates generally.
But the December RBA decision is where the interest rates scenario got a little more confusing. In the minutes of the Board meeting, it was revealed that the Board considered a range of options including returning to much larger rate hikes as well as pausing rate rises. So where rates will go in the months ahead is a wait and see proposition. A lot will depend on the December quarter inflation figures and the RBA’s assessment of the overall global and domestic economic data.
Car finance lenders make their own individual decisions around if and when they will increase or decrease their motor vehicle finance interest rates. Some may move ahead of RBA decisions based on their own analysis and some may hold rates as low as possible to have a competitive edge.
What buyers should be aware of is that the lender rates advertised will usually be for brand new cars and for loan applicants that have a good credit rating. Used cars may attract a different interest rate and possibly different conditions on the car finance.
Improve your cheaper car finance prospects
Lenders assess each application for car finance individually for creditworthiness – the ability to repay the loan. This involves credit checks and an assessment of the personal financial position. Personal car loans are regulated under consumer finance laws which lenders must adhere to.
Individuals can improve their prospects by getting a copy of the credit profile and checking to see if any errors can be fixed before the car finance application is made. Details on this can be obtained at Moneysmart.
The ability to pay assessment may include a review of the balance sheet – what is owed and what is owned, and of course employment and wages. Finalising other loans and debts and reducing outstanding credit card balances can improve the personal balance sheet and possibly prospects for cheaper car finance.
Employees may also like to consider Salary Sacrificing when planning the purchase of a new car. This is an agreement between employer and employee so the OK from the boss will be required. We can then assist with arranging the suitable Novated Car Lease with Salary Sacrificing.
Businesses – consider tax offsets
Business buyers can factor in the tax deductions available with different business vehicle finance options to effectively achieve more affordable car finance. Particularly note temporary full expensing which works well with Chattel Mortgage. Also note the deadline for this measure is 30 June. To learn more, visit Car Loans Brokers At Jade.
Buy to budget
It sounds fairly basic and a no-brainer, but selecting a car with a price that actually works with the car finance budget, including options like no doc car financing, is important. In order to do that, buyers can Request A Quick Car Loan Quote from our consultants. This is finance which is applied for, the application processed right through to the approved stage with a firm offer before the car is actually selected.
Utilise available services
Achieving the cheapest rates and cheapest car finance may be assisted by utilising our professional services. Services which are available to both personal and business car buyers for all types of motor vehicles. We source the cheapest loan offer from across our vast lender panel. Buyers with bad credit issues and businesses that do not have all the documents to complete the finance application are welcome to utilise our services. Check out the Tesla Finance Calculator and discover No Fuss for No Deposit Car Loans to explore your options.
Contact Jade Car Loans at 1300 000 003 for cheaper car finance.
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.
