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Used Car Finance
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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Used Car Finance Overview
Used car finance is when you take out a loan to purchase a used car. Used car financing comes in two ways, either secured or unsecured. A secured car loan is where the car you purchased using the loan is used as security/collateral for the loan whereas an unsecured car loan is a personal loan that doesn’t use your car as collateral meaning that the financier won’t necessarily repossess the car. You can choose whether to buy the used car from a private seller or a car dealership.
When it comes to the age of the car, unlike new car loans, different lenders have different preferences plus it depends on the type of loan you are taking out. Most will require that the car being purchased is under seven years old. Generally, by the end of the loan period lenders tend to be looking for the car to be no older than 12 years. For the car requirements, the used car can be Australian made or manufactured and should not have been written off in the past.
Shopping around for a used car can be challenging and confusing especially if it’s your first time. 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.
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Braid Finance is always more than happy to answer any questions you may have. All of our customers applications are individually assessed. If you have any urgent questions while we get back to you. Get in touch with us today.