For many of us, paying cash upfront for a new car isn’t an option. But thanks to car finance, you can have your new car and drive it too. Here’s how it works.
Step 1 – Your details
A potential lender needs to know you are who you say you are and that you can afford to pay back the loan. So you’ll need to provide ID, income and bank statements, as well as details about your credit history. Your application will then be assessed and the lender will let you know whether your loan’s been approved or not.
Step 2 – The contract
Once your loan’s been approved you’ll need to sign a contract. It’ll outline what you’re borrowing, over what period and what terms and conditions apply. Take your time to read it over and ask questions about anything you don’t understand.
Step 3 – The transfer
So your loan’s been approved and the contract’s been signed. The lender will then transfer the loan amount either directly to the current car owner’s bank account or to the new car dealership so you can pay for your new car.
Step 4 – Possession
Once the car’s been paid for and you’ve taken delivery, you’re deemed to be in possession of the vehicle. You’re now required to pay back your loan over the agreed time frame. All the relevant info about interest rates and repayment amounts and frequency will be outlined in your contract, along with any additional fees or charges that may apply during the life of the loan.
Who should get a car loan?
If you plan to use your car for predominantly personal purposes and novated leasing isn’t an option, or you need a car for work or business, a car loan might be right for you. To ensure you find the finance deal that’s perfect for you, give our expert team a call. They can help you sort through your options and find the finance that best suits your budget, needs and lifestyle. We’re ready to talk when you are!