Buying a new car can be a very exciting experience. Whether it’s browsing online or having a day out in dealerships and showrooms, test-driving the latest models and being intoxicated with that ‘nothing beats it’ new-car aroma, it’s exciting. But it does come with challenges, concerns and second thoughts, especially for those looking to buy with finance. The sales people and that new car smell can be highly persuasive in steering buyers to certain models. But is it affordable? Within your budget? Will repayments be what I expect? There are steps that buyers can take to ensure that the motor vehicle they are looking to buy meets their car loan repayments expectations.
As specialists in motor vehicle finance, Jade Car Loans is extremely experienced in working with customers to achieve the car loan repayments that suit their budget. A key to this dilemma is in answer to the question of what comes first – the car or the car loan? We outline the steps that buyers can take to resolve the car price-loan repayments situation prior to purchase.
DIY Car Loan Repayment Estimates
The price quoted for the car by the dealer may sound workable for you, but if you intend to apply for a car loan, how will that price tag convert to monthly repayments. Making enquiries and test-driving a car that ends up being way beyond your means can lead to an embarrassing or awkward situation. Especially if you enthusiastically put down a holding deposit before making loan enquiries.
On the other end of the spectrum, you may not be fully aware of what cars may come into your affordability range due to the current low interest rates we offer on motor vehicle loans and finance. You may opt for something below what you really want because you think the repayments will be beyond your expectations.
So to resolve all these doubts and questions and steer you in the right direction, there are two basic ways to approach this situation: get a whole bunch of car loan quotes or just use our online car loan repayment calculator.
The calculator does only give estimated repayments but when you consider the time saved in not having to approach multiple banks and lenders to get quotes, it’s a no-brainer option. The time element is a very important issue at the moment as many popular car makes and models are in short supply with buyers facing lengthy delivery delays. Any delay in getting your finance organised can mean missing out or being at the end of a long queue.
Using our Car Loan Calculator is formatted to be easily used by just about anyone with no particular calculation capabilities needed. Buyers simply enter the price details of the cars they have their eye on, the number of years they would prefer to repay the loan and our current interest rate.
The calculator does the rest and immediately displays the monthly car loan repayment estimate based on those figures.
If the repayment estimate is higher than expectations - contact us to discuss if the rate or the loan conditions can be negotiated to achieve a lower repayment level or select a lower priced car.
The loan term can be varied to deliver a different repayment amount. But approval of loan term that is the number of years to repay the loan, is subject to our individual lender guidelines.
If the repayment estimate is much lower than expected, possibly consider the upgraded model or say thanks Jade, and call us to get the application process underway.
Prepare with a Pre-approved Car Loan
Another proven method of ensuring the car loan repayments for the car of choice will meet expectations is to speak with us about a pre-approved car loan. This involves proceeding with the loan application process on a no-obligation basis, prior to committing to the car buy. The loan amount can be estimated and finalised when the purchase is finalised. We process these applications through to ‘approved’ status. This gives our customers confidence that a) they are approved for their loan, and b) they have a confirmed monthly loan repayment amount.
Confidence that allows buyers to proceed with signing the purchase contract as soon as they source their vehicle of choice.
The interest rate on pre-approved car loans is the same as for loans applied for after purchase commitment and the same set of loan features and benefits apply.
It is worth noting that our car loan products are available at fixed interest rates. This is significant as it provides certainty over the full term of the loan. If the RBA does move on increasing the official cash rate in coming years and during the car loan term, any increase in car loan interest rates would not impact a fixed interest rate loan which is already in place.
Shopping for a new car does not have to be a hit and miss process when it comes to matching price with car loan repayments. Using our calculator and talking to us about a pre-approved car loan are both proven steps to ensure you secure the loan and the car that works for you.
Contact Jade Finance 1300 000 008 to discuss new car finance.
DISCLAIMER: NO LIABILITY IS ACCEPTED IF ERRORS OR MISREPRESENTATIONS ARE FOUND IN THIS ARTICLE. THE ARTICLE IS PREPARED AND PRESENTED FOR GENERAL INFORMATIVE PURPOSES AND IS NOT INTENDED TO BE THE SOLE SOURCE OF INFORMATION FOR MAKING FINANCIAL DECISIONS. THOSE REQUIRING GUIDANCE AND ADVICE SHOULD CONSULT A FINANCIAL ADVISOR.