When it comes to arranging a loan to buy a car, boat, motor bike or caravan we understand that you might have a lot of questions about what you can and can’t do, what is and isn't possible and what is the fastest and easiest way to get a loan sorted.
You might have a lot of basic questions and we have the answers.
Welcome to our first Jade Finance Q&A on Consumer Finance!
First, let’s define consumer finance.
- Consumer finance refers to loans by individuals to purchase goods such as cars, boats, bikes and caravans, for their own private use.
- Most consumer finance is offered by a Personal Secured Loans or an Unsecured Personal Loan. Refer to our web pages for full details on these loan types.
- Consumer finance is different in many aspects from business finance.
- Consumer finance is covered by laws and regulated by ASIC. Refer to our article on these regulations.
Now for the questions…
Can I use your finance broker services?
- Both individuals and businesses can access the services of a finance broker such as Jade Finance.
- You just call us and you will be assigned a consultant who will handle your loan requirements.
Wouldn’t it be easier for me to just phone a bank or finance company for a loan?
- Not necessarily. Banks and some lenders have strict guidelines over personal loans. If you don’t meet all their conditions, you may be offered a higher priced loan or not be offered a loan.
- Jade Finance has access to all the major Australian banks and many, many lenders. Our consultants know which lender is offering the best loans at any one time to suit your requirements.
- With our bargaining power, we have the ability to negotiate the cheapest interest rates for personal loans.
Should I accept the loan offer from the dealer?
- Not necessarily. Some dealer finance includes commissions, high fees and charges.
- We advise getting at least another quote from Jade Finance to compare. We consider, in most cases, we can source more competitive loans than many car and boat dealers can offer.
I’ve been offered a 0% interest rate loan. Isn’t that the cheapest deal?
- Not necessarily and in most cases NO.
- 0% interest rate loans tend to be a sales tactic used by some sellers to attract buyers.
- They can include inflated prices for the goods, much higher loan fees and charges and/or the low interest rate may only be for a short period after which a much higher rate kicks in.
- Study the detailed fine print of such an offer, ask for an itemised list of all fees and get another quote on your loan from Jade Finance to compare.
Do I have to pay a deposit?
- There are two ‘deposits’ to consider – the deposit that a seller may request to confirm your sale and a deposit that may be requested by the lender.
- Some lenders will require borrowers to pay a deposit on their purchase. This will be determined by your individual application and the goods you are purchasing.
- We can achieve no deposit loans in some cases.
Can I decide how long I want to repay my loan?
- Some lenders will have set timeframes for certain loan types.
- Most consumer finance loans are 4-5 years with some boat loans up to 7 years or longer for higher value boats.
- The loan term will be determined by the lender based on the age, condition and value of the goods.
- You can advise your Jade Finance consultant what you have in mind for your loan term and your consultant will work towards negotiating those terms with the lender.
Can I decide what monthly repayment I want?
- You should work out your budget before applying for a loan so you know how much you can realistically afford to repay each month.
- You then advise your Jade consultant of this figure so we can work towards structuring your loan to suit your requests.
- The loan repayments are determined in part by the loan term. So they go hand in hand.
- If you want to reduce the monthly repayment on the loan offer you have received you can choose to pay a greater deposit to reduce the overall loan amount or request a longer loan term.
How long will it take to arrange my loan?
- It’s difficult to provide an exact timeframe, but usually we can provide loan quotes within 24 hours.
- Jade Finance provides a fast approval service to expedite loans so you can commit to your purchase.
- Having all your paperwork ready – financials, pay slips, bank statements etc – will greatly speed up the process.
How do I find out how much I might have to pay on a loan before I commit to a purchase?
- We have provided personal loan calculators for exactly that purpose.
- Jade Finance Calculators are available on our website – flick over to those web pages and see how they work.
- You simply enter the details of your purchase and your loan and you will receive a rough ballpark estimate on loan repayments.
- This is a generic device and is only an estimate and not an offer or quote. Please read the disclaimer and terms and conditions for our calculator.
That concludes this issue of Jade Q&A, we hope we have helped answer some of your queries and you are now confident to call us and discuss your loan requirements.
To discuss a loan for your consumer purchase contact Jade Finance 1300 000 008
DISCLAIMER: THE INFORMATION PROVIDED IS FOR GENERAL CONSIDERATION. ANY REFERENCE TO OFFICIAL GOVERNMENT POLICIES HAS BEEN SOURCED FROM AUSTRALIAN GOVERNMENT AND STATE GOVERNMENT SOURCES. INFORMATION ON INDIVIDUAL VEHICLE SPECS IS SOURCED FROM THE MANUFACTURER WEBSITE. NO LIABILITY IS ACCEPTED FOR ANY ERRORS IN PRESENTATION OR INTERPRETATION OF THE FACTS AS PROVIDED BY THESE SOURCES. WE ADVISE ALL INDIVIDUALS AND BUSINESSES TO REFER TO THEIR ACCOUNTANT OR FINANCIAL ADVISOR FOR PROFESSIONAL ADVICE SPECIFIC TO THEIR INDIVIDUAL CIRCUMSTANCES.