The Easter holiday is a great time to get out of town for a break. Road trips, whether by car or motorcycle are popular choices so you’ll need a vehicle that is suited to where you want to visit and who is planning to come along. If a new car or bike is in your plans for an Easter road trip, then now is the time to get going with the vehicle buy and sorting our your motorbike and car loans.
When it comes to loans, now could be a fortuitous time to apply as a rise in the official cash rate by the RBA is highly anticipated to occur in coming months. We take you through the process of sourcing a cheap motorbike loan or car loan, what you need for the application and throw in some tips for where to go.
Evaluating Types of Loans
The most commonly used type of loan for privately purchased new bikes and cars is the Secured Loan – Secured Bike Loan and Secured Car Loan. The suitability of a secured loan for a used goods will depend on the age and condition of the goods being acceptable by the lender as security.
The format of a secured loan is relatively standardised across the lender market. The goods being purchased become the security for the loan. The repayments are made in equal monthly repayments over the loan term.
While the format is relatively standard, there will be variations across the lender market. Variations can be seen in regard to:-
- Minimum and maximum loan amounts permitted
- Fixed or variable interest rate.
- Interest rate amount.
- Loan terms permitted.
- Availability of ‘no deposit’ finance.
In addition to these, loan offers made to individual applicants will also vary based on:-
- Credit rating of the applicant.
- Risk assessment made by the lender.
- Lender assessment of the affordability of the applicant and suitability of the loan for the applicant.
ASIC set out guidelines that lenders in the consumer finance sector must adhere to and they include that a loan offer is not to be made to an applicant where the loan is deemed unsuitable to the individual.
Comparing Interest Rates
The interest rate on the loan is a key factor to watch out for when assessing loans. They do vary and a small variation that appears irrelevant it does become very relevant when taken in context of the total amount of interest you’ll be paying.
To assist buyers to appreciate the variations in lender interest rates and why Jade Finance focuses on achieving the cheapest interest rate loans, we’ve posted a Compare Interest Rates table. This lists the rates available from different lenders and by entering the amount you are considering for your loan, it becomes a loan repayment estimator.
What you need to apply
Applying for a car loan or motorbike loan with Jade Finance is quite an easy process. Our broker-style service is available to individuals and businesses. You can apply over the phone or online. A range of information will need to be provided to our consultants so they can source you a quote and negotiate the cheapest offer.
This information will include details of your income, employment status and history, assets and debts including credit card balances and other loans and regular expenses.
A good credit profile will attract a cheaper interest rate and loan conditions. So if you think you may have issues in that area, review your profile and move to address any problems. Paying down credit card balances may improve your prospects also.
Once we have your information and details of the vehicle you intend to purchase, we proceed to source the cheapest loan offer from across our lender panel. When you accept that offer, we proceed to process the application.
Pre-approved Loans for Low Stock Vehicles
A loan application can be made after a vehicle has been selected and a commitment to purchase made or beforehand. A loan application made prior to actually buying the vehicle so to speak is known as a pre-approved loan.
Pre-approved finance can be very useful as it provides applicants with a firm idea of how much they are approved to borrow and therefore which vehicles they can start to consider. It’s also particularly handy in the current climate of limited availability with some makes and models.
Buyers with the finance already sorted can immediately commit and place first dibs on low stock cars.
All the features and conditions of pre-approved loans are the same as for post-purchase finance, including the interest rate..
Travel Town Tips
If you need inspo for where to go we can share some ideas. Check out the 2022 Australia’s Best Beaches list released by Tourism Australia. Head off and make your own judgements. Booking platform Wotif also posted a list of top towns which could be worth checking out.
Easter starts on Friday 15 April so the countdown is on for those planning a road trip in their new car or a ride on their new motorcycle.
Contact Jade Finance 1300 000 008 for car loan or motorbike loan quote to make that dream Easter road trip.
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.