Buying a car is a very exciting prospect but it can come with stressful times as you deal with all the decisions to be made. Both new and used car dealers are usually extremely professional but they are keen to sell cars, so they will likely be tempting you with extras and specials – if you sign now! Even private sellers can put pressure on buyers, especially if they need a quick sale.
All this pressure when you are making a major purchase and should be taking time to consider the options and make informed decisions. It’s not uncommon for people to make quick car buying decisions only to discover when they start looking for a car loan that the repayments are way more than they expected. Or they may find they have trouble getting a good deal on a car loan and are forced to commit to a more expensive loan so they can honour their commitment to the seller.
The car purchasing process doesn’t have to be like that. You can stay ahead of the curve and even turn the pressure back on the seller to negotiate a cheaper price. Here are a few tips to keep you ahead of that curve and reduce some of the seller pressure.
Use a Car Loan Calculator
You’ll likely be browsing online to choose your car before you head out for the inspection and test drive. In the used car market, the prices are usually clearly displayed in the advert so you know what the car will cost to buy. With new cars, the price is usually for the basic model or states ‘from $xxxxx plus on-road costs or delivery charges’. These ‘on-road’ or ‘delivery’ charges can be a bit of an unknown, so be aware that the price will be more than the figure you are eyeing.
The purchase price is one thing. What is probably more important to you is what it is going to cost you in repayments each month. That’s the real clincher for most people.
We’ve made that easy to estimate with our commercial car loan repayment. You’ll find it on our website and it’s a good idea to keep this page open in another web tab while you’re browsing the cars for sale.
Making Informed Decisions with Repayment Estimates
It’s free and very easy to use. The layout is a standard online format with fields where you enter your data. In this case, the amounts of the cars you’re considering.
First, you enter the amount of your loan. Most people will just put in the purchase price of the car, but if buying a new one, you’ll need to have extra to cover those on-road costs. If you’re trading in your current vehicle, you could deduct the amount of what you hope to get for it.
Then you enter how many months/years you want to pay off the loan. There is a maximum for some car loan types, usually 5 years/60 months. The longer the loan term the lower the monthly repayment but the longer it will take for you to pay out the loan and vice versa.
Then enter the business car loan interest rates that we are currently displaying. Note that personal car loans and business motor vehicle finance have different interest rates.
Once you’ve entered all that information, you click calculate and an estimate of the monthly repayment for that data is displayed. We stress ‘estimate’ as this is a generic device and can’t predict any fees the lender may charge or any specifics around your particular application. It’s also not an indication of a quote or that your application is approved. Read the disclaimer for details.
Maximizing Your Purchase: Leveraging the Calculator's Insights
But what it does do, is give you a good indication of how that purchase price converts to monthly payments. This level of knowledge can put you in the box seat when negotiating with the seller. It can help you clarify your thoughts by knowing your limits and help you decide if you can afford those extras that are on offer.
If deciding between a few different vehicles, you can use the calculator for as many as you like – might help you cull the list down and save you time going for a test drive.
Pre-Approved Cheap Car Loans
Having that estimate in your car-buying toolbox is one thing, but why not take it to the next level and get your loan sorted before you start talking to sellers?
Yes, that is possible. Your Jade Car Loans consultant can arrange our signature cheap car loan before you have committed to purchase. And having pre-approved finance is not an obligation to proceed. If you change your mind and don’t want to buy that car, not a problem.
Pre-approved finance is a straightforward process at Jade Car Loans, especially for those looking into a sole trader car loan. We organise you a cheap car loan quote based on the estimated price of the car you are considering before you ‘buy’ rather than after. The same processes are involved as when you apply for a car loan after you’ve effectively ‘bought’ or committed. Our same cheap interest rates apply and our consultants follow the same rigorous process to source you the best car loan possible.
Knowing your loan is approved and ready to finalise puts you in the negotiating box seat with the seller. Make a lower offer with the guarantee that you can settle quickly. Pre-approved loans are available for both personal and business vehicle finance on new and used cars.
So if you want to stay ahead of the buying curve, give us a call and discuss a pre-approved car loan with one of our Jade Car Loans consultants. Call 1300 000 003