Apply for Used Car Finance
Used Car Finance
Is it that time of the year when you need a new car but don’t have the budget for something off the showroom? Well we can help with that. We have a number of used car finance options available to get you in your new vehicle today.
Many Australians opt to buy used cars rather than new ones for various reasons of course the main reason being they are much more affordable. Though as much as they are affordable, securing the amount needed to finance the car can be a challenge. We understand that sometimes, life has its ups and downs and finances are not always readily available.
Luckily, if this is your situation, you might be eligible for used car financing and this is where Braid Finance comes in. We will help you find the perfect financing option for you that will match your circumstances and meet your needs. But before that, let’s dive into more details on what used car finance is and how to go about it.
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What is Used Car Finance?
New car loans are mostly secured loans where a financier has the right to possess the vehicle in case you don’t repay the loan. On the other hand, this means you get a low interest rate. When we talk about a new car, it doesn’t mean you have to buy a car straight from a dealership as some lenders will accept a vehicle up to two years old either from a second hand car dealer or a private sale.
Remember that you and your car will have to pass the eligibility criteria first before you secure the loan. In the case where you have a bad credit history and fear that you may not be able to secure this loan, consider a bad credit secured car loan as this may help you get the car of your dreams. Note that these loans come with a higher interest rate due to the increased risk factor. When it comes to putting down a deposit, some car loan brokers can let you do so as long as you can afford it.
This way you will have to borrow less. What about interest rates? There are a few options. Variable interest rates and fixed interest rates. Variable rates mean that interest rates will fluctuate whereas fixed interest rates remain the same for the length of the loan term. Fixed rates might be a bit high but at the back of your mind you are sure that they will remain the same. Variable interest rates fluctuate with the market interest rates meaning that your repayments might increase when they go up. With that being said, ensure that you compare the rates so as to see how competitive a loan is. Check things like application fees, yearly/monthly charges, legal fees and car evaluation cost.
Refinance Car Loans
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What to Consider when Shopping for a Used Car?
Shopping around for a used car can be challenging and confusing especially if it’s your first time apply for finance. Just remember we have a network of car dealerships who can help you find a suitable car for you.
Let the team know what you are looking for when you are speaking to them and they will be able to put you in touch with the right people
To make things easier for you, we share a couple of things you should be on the lookout for.
Firstly, vehicle criteria. Each lender has their own criteria and requirements so ensure that you pick a lender that can offer you a loan for the age and model of the vehicle you want.
Secondly, check out the interest rates. It’s advisable to go for a lower interest rate as it will save you more money.
Thirdly, keep an eye out for payment flexibility. It will definitely be an advantage if a loan fits within your budget. You can opt to go for weekly, fortnightly or monthly payments.
Just make sure whatever option you choose, it doesn’t strain you financially.
Additionally, if you would like to pay your used car finance early, inquire whether you will be charged an early payment fee. Last but not least, the loan term.
The longer you borrow the money for the more you will spend in interest but the repayments will be smaller because the cost is spread over a longer period. So deciding how long to take out a loan depends on affordability and its expenses.
Bonus Tip: When buying a used car, if possible ensure that one of the things you do is conduct an extensive inspection of the car you want to purchase and bring your mechanic along as well.
Check the exterior and interior of the car, engine, oil leaks, tyres and also go for a test drive. This way you save yourself from disappointments and spending money on a car that’s in poor condition.
Compare Used Car Loan Rates
- Interest rates. The interest rate charged on your loan determines how much you will end up paying at the end of the loan term. Always be aware of the rate you are being offered.
- Loan term. Car loan terms can be set for short periods of time such as 6 months to a year or longer periods such as 5 years and above. Going for a shorter term means your interest rate will be lower but monthly repayments will be higher whereas for longer terms, your interest rate will be more but less monthly repayments.
- Minimum repayments. It is important for you to be aware of what your minimum repayments are for your loan and whether it fits well with your income and budget.
- Fees you will be charged. There are lenders who charge a monthly account fee on top of your loan or early repayment fee. Make sure you are aware of any fees that are applicable to avoid having to pay more money than you had expected.