Accessing assistance through online resources is standard operating procedure for most Australians. When we need to do something especially for the first time, we tend to straight away head to the web to check out the details and options. As tech has developed, so has the range and selection of resources to assist individuals and business in just about every aspect of their life. That includes when it comes to sourcing a car loan.
Taking on motor vehicle finance, whether it be for a business vehicle or a private car, is a major commitment. Buyers should be discerning and informed when it comes to making decisions around their loan. Online tools and resources are readily available to assist buyers source a car loan and their correct use may help in sourcing the cheapest finance offer.
We stress 'correct use' because getting the most from the tools and resources available involves not only knowing where to find them but how to use them properly. As part of our approach to educating and informing our customers, we provide this overview on car loan tools and resources and how we assist buyers on a direct, personal level.
Car Loan Explainers
The first step is to fully understand the types of loans which are available. For buyers of private vehicles, that is known as consumer finance. An area which is regulated through ASIC. The ASIC website provides extensive information to explain consumer finance for borrowers.
The two main types of loans for private buyers are:-
- Secured Car Loan
- Unsecured Personal Loan
We have provided explainers on both these loan types.
Differentiating between Business Vehicle Finance and Private Car Loans or consumer finance is also important. Business finance typically will attract lower interest rates and has different types of loan products.
But in order to be eligible for business finance, the business entity must have an ABN and the vehicle must be for use primarily in the business to meet ATO rulings. ABN holders can be eligible for business finance and new start-ups can apply for Low Doc and No Doc Vehicle Finance through specialist lenders such as Jade Car Loans.
Business vehicles must meet ATO guidelines in regard to tax deductibility. Using a private vehicle for business use is also subject to ATO guidelines in regard to what expenses can be claimed by the car owner.
Rate Comparison Tools
The interest rate is a priority when it comes to securing the cheapest car loan. There are multiple resources available to compare motor vehicle finance interest rates across varying sectors of the lending market.
While we focus heavily on securing the cheapest rate for our customers, we advise that the rate should be considered in conjunction with all the other aspects of a car loan. A cheap rate with unworkable loan terms and conditions may not be the most attractive option.
Consumer finance includes an advertised rate and a comparison rate. When reviewing rates, ensure you are across the difference. To assist customers, we have prepared a table which lists a range of banks and lenders in the motor vehicle market.
The table shows the advertised and comparison rate from those lenders so a quick review can be done. This also doubles as a calculator for quick repayment estimate calculations.
When using these tools be aware of the difference between fixed and variable interest rates. In the car loan market, a fixed rate will remain fixed at the rate at which the loan is established for the entire term of the loan. A variable rate is subject to fluctuations in line with changes to rates made by that lender. Currently the RBA is in a process of raising the cash rate and those increases flow through to lending markets. So signing up for a variable interest rate car loan means that rate could increase over time.
One important point to be extremely aware of when using generic rate comparison resources is that lenders will usually advertise an interest rate which is for applicants that have good credit profile and are purchasing new motor vehicles. Unless it is stated otherwise.
Understand that if your credit score is sub-good and/or you are purchasing a second-hand car, the interest rate that you are offered may differ from the advertised or comparison rate.
Car Loan Calculators
A business car finance calculator is a must-have tool for all car buyers. We offer free use of a calculator and recommend buyers take full use of this resource. It is an online resource so no special software, skills or other IT gear is required. Just internet coverage and a suitable device.
Just follow the instructions by inputting the values of loan amount, term and interest rate and a repayment estimate based on those values is displayed. To use this resource properly, be aware that the results attained are estimates and not offers. Using a calculator does not mean you have applied for a loan or been approved.
Calculators are great for quickly translating dealer advertised car prices into monthly car loan repayment estimates. They offer a quick and easy way to see what particular makes and models are within your affordability range before you even visit a dealership.
Credit Profile Resources
As mentioned above, applicants with good credit ratings are offered the best interest rates. Achieving and maintaining a good credit score is therefore essential. Resources are available to assist in requesting a free copy of a credit report and advising how to fix any errors as well as general information at the Government website Moneysmart.
Personal Contact Resources
While many people will conduct their background work and research online, many will still want a personalised service when it comes to applying for a new business vehicle finance. Jade Car Loans provides exactly that. When you contact us, you are assigned your own consultant who will handle your car loan on your behalf. Every application is treated individually, and the cheapest loan quote is sourced from across our vast lender panel of banks, finance companies, and other non-bank lenders.
We save customers time while securing better rates and cheaper loans. Our extensive resources are available to your through our broker-style lender services.
Hopefully, this information adds to your knowledge base and directs you to the tools and resources to assist in your securing the cheapest and most suitable car loan.
Contact Jade Car Loans 1300 000 003 for personal service in securing the cheapest 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.