1. What is the age of the car?  Car loan rates vary depending on the age of the car.  If you are going for an older car, don’t expect as sharper interest rates as a new car loan.  A car is a depreciating asset and lenders take this into account even if you are a ‘prime customer’. The age of the car may restrict how long you can have the loan term for.  For example, a lender may not like the car to be older than 9 years at the end of the loan term.  This means if you are looking to finance a 2004 model, this is already 6 years old and the lender may only approve the loan over a 3 year term.
2. What is the loan amount you are looking to borrow?  This also effects the rate and the products available.  Some loan products have lower rates for borrowing more.  For example a loan for 5K is not going to attract the same low interest rates as a 30K car loan.
3. Are you putting in a deposit or a trade in?  100% is more difficult to obtain.  In many scenarios (mainly consumer loans) lenders want to see that you have made a savings commitment to you new purchase. This reduces the risk  or exposure on the asset to the lender.
4. Is the car for business use or personal use?  This will determine the type of car loan product you require.  Its best to seek your accountants advise on loan product particularly when its for business use.
5. How long would you like to pay the loan back?  Loan term determines repayments.  You need to think about your budget and your monthly expenses before adding the car loan.  Of course, if you pay the loan back sooner you pay less interest.
6. What is your credit history?  Do you have defaults? Have you been bankrupt?  Do you have a lot of experience in having car finance?  Or is this your first loan?  Lenders will assess you for approval based on your credit file.  Be aware of what is on your credit file and don’t make multiple loan enquiries.  This will give you an ‘active’ credit file which lenders dislike and are more prone to rejecting your application.

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It has been announced that the Labor Government is intending on giving Australians a $2000 rebate on the purchase of their new vehicle in order to give individuals the chance to upgrade their car to something more fuel efficient! So why not think about purchasing a new economical vehicle to save on petrol and minimize the effect on climate change?

If you are having issues with your car and want to upgrade to something stylish and small?

Toyota Yaris

The Yaris was established in 2005 and hit off with great success; you are bound to have seen one drive past you. They are a spacious car and are available in a hatch or a sedan, depending on your preference! They are currently on the market for roughly $22,000 brand new and used are ranked at about $10,000-$15000 all depending on the modal and year of the car. Below are only various components; you would be surprised how much more this little Yaris has inside!

Specifications:

-            Available in manual/automatic either 3 or 5 door

-       Electric Power Steering

-       Front wheel drive

-       ABS brakes

Features:

-       Power windows

-       Air-conditioning

-       Storage compartments

-       Digital instrumentation with liquid crystal display

-       MP3 compatible single disc CD

Price: $21,390 (Brand New)

Monthly Repayments: $367

Final Payment: $6417.00 (30%)

Loan Term: 60 months

Interest Rate: 8.27%

* To approved applicants terms & conditions apply

For more information on how to go about financing your new car, contact Natloans on 1300 628 562 or visit our website www.natloans.com.au.

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If you are ahead of your mortgage, you may be tempted to redraw to fund that next car purchase.  However you need to be aware of the positives and the negatives of doing this:

Positives:

1. Convenient – by using your mortgage you only need to worry about one loan repayment.
2. Quick if it involves a redraw – depending on the lender, redraw can be a matter of a simple phone call, unlike getting a loan from scratch where the broker needs to verify income and do credit s checks.
3. Affordability – if you are ahead on your mortgage, this means you may not need to increase your repayments

Negatives:

1. Its an expensive option – Interest rates may be lower however, the size of the debt and the effect of compound interest over time means you pay more interest therefore costing you more in the long run.  Also you may get charged with redraw fees to access the funds.
2. Keeping Track is difficult- by not separating out a car loan you cant make additional payments which will enable you to have full equity or paying off the car
3. Could end up being time consuming if you need to refinance your mortgage in order to get the car loan – if you are not in front on our mortgage repayments and don’t have the excess funds to redraw, going through the mortgage loans process will take a lot longer than obtaining a car loan.  For example, when obtaining a mortgage, your broker will need to arrange a valuation of your property. This could blow out into weeks, making the process extremely cumbersome.

If you need to know more information about obtaining a car loan instead of using your mortgage, call our friendly staff at natloans on 1300628562.

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There is an increase of environmental concerns, there are thousands of cars on the road each day, imagine the amount of pollution that is constantly hovering around us. Not only this it is now a struggle to find parking all over Melbourne, unless you are willing to pay for parking you will be moving your car every hour to minimize your risk of getting fined! Scooters are small and compact you can just park them at bike racks. Another highlight is that you don’t even have to wait in traffic. You can speed by traffic jams and get to your destination faster and many scooters are now made for gas consumption which is a cheaper option rather than petrol. What’s not to love?

The maintenance of your scooter should be of high concern, things like checking your oils, tire pressure and battery should be done every month.  Every six months you should check and change if needed your tires and breaks, these components are important for your safety, you don’t want your scooter to lose control resulting in injuries. Remember you will be using it as much as a car and this only has two wheels!

Before making a decision weigh up the benefits of using a car or a scooter and seek for ways in which to save in the long run. Maybe it will involve having both and using each for different occasions at the end of the day it is what you prefer more!

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This applies to whether you looking at upgrading or downsizing in a new car or even refinancing the residual at the end of your loan term. You can do this wisely and prudently if you have a proper strategy and stick to it.

Consider the following tips in getting the best deal possible on your next car:

Cash Up

Try saving your tax returns and bonus towards a deposit in your new wheels.  By doing this you reduce the amount of exposure you have on the goods and make yourself more appealing to the lender. Lenders are conservative and want to know that their risk is reduced if in case the loan goes ‘pear shaped’. By saving a good deposit, you give the lender more of a reason to say ‘approved’.  It shows thought and planning has gone into the process of purchasing the car.  With refinancing of residuals, don’t just accept what the current financier is offering you.  Seeing a broker may add a few extra steps to the process, but it could work out to be a very worthwhile exercise.

Match the loan repayments to your budget

Before you go out looking for a new car, determine what you want to spend in accordance with your monthly budget.  There is no use falling in love with a car that will cost you repayments of $700 per month if you only feel comfortable paying $500.  Be realistic and factor in a “buffer”, that way if your circumstances change, it is still easy to meet the minimum repayments.  Use a budget calculator, spend some time analyzing your circumstances and then make your decision.  There are great deals on all the time, you won’t miss out.

Think outside the interest rate

When you do get the car loan, make a promise to make additional repayments where ever possible.  You may be finding that the loan you are going for may not reward you for extra payments but sting you with fees instead.  Try to get a loan product which enables you to make these additional payments so that when next financial years comes around and you have some extra cash, you can place this on your loan and effectively reduce the amount of interest you pay in the long run for the car loan. Choosing the best car loan requires more than finding the best interest rate.  Features such as the ability to make additional repayments can save you hundreds or even thousands.

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Credit card rates use to have quite high interest rates, as the market is constantly competing against many companies the rates have now decreased making it more appealing to consumers. Before making the decision of a car loan OR using your credit card remember to:

• Shop around for the best interest rate, although some credit cards have low interest rates there are still high rates out there

• You will be paying a surcharge for every transaction made, when purchasing a car this surcharge can be up to 2.5%

• Purchasing your car on your credit card may affect your ability to pay your day-to-day expenses

• Don’t go over your limit, you don’t want to position yourself in a situation where you can’t cope in paying off your bills

• If your credit card gives you reward points in return this may be the purchase you’ve been waiting for, in order to win that trip overseas or a free television

There are many things you have to take into consideration before making your final decision, make sure you do all the appropriate research even it means speaking to a financier for an opinion. At the end of the day you want to make sure you have made the best decision for you.

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1. Work out what you can afford to borrow
2. Shop around for the best deal by using a broker

Following are some other useful pointers:

1. Know what you’re dealing with:  Make sure you know what you are signing before you go ahead.  An experienced and reputable broker will be happy to go through these details and any other questions which may arise.  Check the terms and the conditions of the loan contract, including any fees and penalties if payments are missed and what happens if you choose to pay off the loan early.
2. Get help if you cant pay your debts:   It is important you meet the payments you are required to make but when difficulty arises, burying your head in the sand is not the best solution.  Act quickly by contacting your credit provider or broker.  There are many places you can go for help including financial councillors.
3. Complain if things go wrong:  Try to resolve any issues you can with your broker or credit provider first.  If you are not satisfied take your complaint to an independent dispute resolution scheme.

More information on all of these points can be accessed at our web site which is www.natloans.com.au or calling 1300 628 562.

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What you must remember is that when dealing with a consultant you must be as honest as you can, they will find out if you are giving them inaccurate information. Whether you contact your local bank or a finance company they will most likely check your credit history to see if you have ever been bankrupt or had any defaults. What people don’t realize is that simply delaying bills it can be listed on your file and make it that more difficult in getting finance. Undesirable information can remain on your file for up to 7 years!! So next time you are due to make a payment be sure to have your money ready to go, even if it means paying it a few days earlier.

Did you know?

Making numerous enquiries to various finance companies will lower your chances of getting finance. Consultants can view all your enquiries on your credit file. If you speak to the right people about how to go about eliminating your defaults they will guide you to take the necessary steps to buy your new car. Natloans specializes in helping individuals with bad credit. Yes! You may not be eligible for a loan straight away, it may be 3, 6, or up to 12 months later you will have second chance of driving away with a new car.

What you can do to improve your credit file?

1. If you are aware of an unpaid default make sure it is paid completely before contacting a financier
2. With your new loan make sure all repayments are paid before the due date and are not in arrears
3. Don’t make too many enquiries to finance companies
4. Ask your local financier for more advice

Natloans deals with hundreds of clients that have had previous issue with their credit files, they have helped individuals who have lost everything get back on their own two feet. Our consultants go above and beyond to find a solution for all their clients, do not hesitate to contact us on 1300 628 562.

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In the past being bankrupt or having a bad credit file made it almost impossible to get finance anywhere. We all make mistakes, but how are we supposed to improve if we aren’t given a second chance? In today’s society the issue of having a few defaults on your credit file doesn’t eliminate the chance of purchasing your dream car – second chance car loans. It’s all about finding the right place to get finance where financiers understand exactly what you are looking for and are willing to go the extra mile in getting you the ideal loan.

Where can you find this type of service?

Brokers are specifically trained to guide their clients in finding the right car to satisfy their needs with the best interest rates possible. They aim to find the ideal lender that you are suited to, getting you a better deal than what you would have obtained on your own. A major advantage is the interest rates offered, brokers are able to negotiate with lenders for a lower rate than the Banks, this is the point of difference between a Finance Company and their competitors. Remember never, say never, there are people that are willing to give you and opportunity and guide you through with constant support in order to accomplish your dreams.

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