Car finance or car loan is a type of financial arrangement in which you can buy a vehicle without paying the total price upfront. The remaining amount is paid within a fixed and predetermined period. It usually involves a lender, a bank or a finance company. Finguard Finance, a car loan broker in Brisbane, can help you finance the car. The lender or the bank provides funds to the borrower to purchase the vehicle. The borrower, in return, repays the loan amount with interest. Depending on the loan agreement, the borrower may also have to pay specific fees.
Different factors are considered in car finance, such as the car’s model, make, quality and company. Payment arrangements are made depending on the price. Initially, you are required to pay an amount, which is also called a down payment. Generally, 10% should be paid.
However, it can vary depending on your choice of car and the lender or bank. Car finance can be of different types such as car loan, leasing, chattel mortgage and novated lease.
Type Of Car Loans
Cars loans are generally of two types, and depending on your need, you can get car finance in Brisbane from the best brokers – Finguard Finance. These loans are:
Secured Loan
In a secured loan, the loan is secured against the vehicle purchased, which can be repossessed if the borrower does not make payments
Unsecured Loan
In an unsecured loan, the vehicle is not used as security. The lender charges a high-interest rate because the risk is also high.
Deposit
When getting car finance, you can make a down payment or deposit 10%. Paying a deposit can help reduce the amount borrowed and overall interest paid. Some lenders even offer no-deposit loans. To ensure you get the right and best deal, consult car loan brokers in Brisbane.
Loan Term
Loan terms can also vary depending on your down payment and the type of vehicle being purchased. A general bracket is for one to seven years. Long-period loans can have lower monthly payments, although the interest accrued is more over the loan period.
Interest Rate
The rate of interest can vary depending on your agreement with the lender. It can be fixed as well as variable. In a fixed interest rate, you have to pay a fixed amount throughout the loan term, whereas if it is variable interest, it can change as per the market conditions.
Repayment
Repayments can be monthly, weekly, or even fortnightly. You must plan your budget according to the loan repayment to avoid defaulting payments.
Insurance
Although insurance is not mandatory, some lenders may ask you to get adequate car insurance to protect your vehicle against accidents or incidents. Car loan brokers in Brisbane can help you get car insurance that provides sufficient coverage.
Credit Score
Many lenders or banks can choose to assess your credit score and report to check your creditworthiness. It helps them decide whether or not to provide you with car finance. If you have a good credit score, you can get a lucrative interest rate and negotiate with the lender. You must review your credit score and improve it if needed to enjoy favourable terms and benefits.
Additional Cost
Other than the loan, interest and broker fees, additional costs are involved when purchasing a car. These include establishment fees, early repayment fees and ongoing fees.
A car loan or finance is a great way to purchase a vehicle without paying full payment upfront. You can modify the terms neg, negotiate with the lender, and accordingly make repayments with interest. To get car finance in Brisbane, contact Finguard Finance; we specialise in providing car loans and car finance. In addition, we offer personalised services to provide tailored financing solutions according to your requirements
