From car insurance to maintenance there are vehicle finance companies that offer more than you would expect when you apply for a loan and these extras can both save you money and make your life easier.
For example, there are companies that will sell your old vehicle and even help you find a new vehicle. Not to mention offering add-ons such as car insurance, maintenance plans and insurance on your loan.
Before we get into the various add-ons you may encounter when buying a car, let's take a look at vehicle loans and get the basics right.
Getting the basics right
Working out affordability
When it comes to vehicle finance research is your best friend. The more you're able to research before applying for a loan, the more leverage you'll have to negotiate both with the lender and dealership.
You can make use of a loan calculator to get an idea of how much your monthly installments will be and adjust it until you reach an amount which fits comfortably into your budget.
A balance between affordability and overall loan cost
Generally speaking car loan terms range from 12 months to 7 years but most people settle on a 5 year term. The longer the loan term the more interest you'll pay but the lower your monthly repayments.
Choosing a good balance is key to getting it right and achieving a balance between not paying too much overall for your loan and not having an excessively high repayment figure.
Car loan interest rates in Australia
Car loan interest rates in Australia can go up to 15% and are always tailored to the borrower based on their credit rating and loan details. The better your credit rating the lower the interest rate you will be offered and the less the overall cost of your loan will be.
Bad credit car loans
Bad credit loans are available to those who need to purchase a car but may not meet the requirements set out by traditional lenders in terms of credit history. You will however have to pay a higher interest rate and may have to meet other requirements.
Secured versus unsecured loans
Almost all vehicle loans will be secured on the very car being financed. This means your car may be repossessed should you default on the loan. Unsecured car loans will likely only be available for older vehicles that have a lower price point.
Car loans are available from banks, peer-to-peer lenders, alternative lenders as well as dealerships. Although insurance on financed vehicles is compulsory there are a range of add ons that you will only be offered from certain lenders. Banks and peer-to-peer lenders will be unlikely to offer you the same range of features that a dealership or online car finance house would.
Car loan add-ons
There are so many great deals & complementary extras
Let’s just take a look at a company called NRMA, for example, they offer so many great additional features on their loans. When you look at getting a car loan, they will offer you far more for your car than other companies. In a nutshell, they are a company that takes care of various services you would need when purchasing a car or applying for a car loan.
Are the extras that you’re getting bonuses?
Well, you are paying for the maintenance plan or insurance it’s just neatly packaged in a way that makes it seem to be a bonus. These are mandatory and, having a company take care of it all, makes life much easier for you. Insuring your car means that if anything were to happen, your car is covered and you are not stranded without transport.
Thus helping you to still have wheels, they also know that keeping your car in its best condition will help you so that you will not have to spend more than you are spending on your car loan and your maintenance plan. Ultimately, this helps to ensure that your car is well taken care of and you have an asset that will last you as long as possible.
Keep your car services in one neat bundle
Did you know that you even get services that help you to get your battery changed or charged by the companies like the one mentioned above? Keeping your car finances streamlined makes life easier for you. Use a loan comparison site to find a loan that suits all your individual requirements and offers the extras will go a long way.
The best way to know what you’re getting with your car loan
All you have to do is find a company that suits you best and this means finding a company that takes care of what’s important to you. Applying for a loan and, the repayment thereof, is a big responsibility and you should make sure you’re getting the best offer available. Using a loan comparison site can help you do exactly that.
Use a car loan calculator, get maintenance & roadside assist
You can also use a loan calculator to help you determine your loan amount and that can help you decide which option you would like to take from the company.
When you use the calculator you can find the loan amount that includes a maintenance plan, helping you keep your car on the road for longer.
You can even get roadside assistance, which means you’ll never find yourself stranded! With roadside assistance, you will have peace of mind that you will always be taken care of in emergency situations.
Be on the lookout for competitive vehicle finance deals
Yes, you can find the extra bonuses, the best maintenance plans or the most competitive insurance deals, if you keep a lookout for them!
All it takes is doing a bit of research to ensure you’re on the right track. Loan comparison sites are designed to take the guesswork out of finding the perfect car loan and are a very good place to start.