5 Factors to Consider When Choosing Car Finance Broker

Car Purchse
Unless you have enough money upfront, you will need to work through a car finance broker if you want to purchase a vehicle. These brokers can help you obtain a car loan, which will allow you to purchase a vehicle when you need it, rather than waiting until you have saved enough money. It is important to realize, however, that not all finance brokers are alike, and not all of them are looking out for your best interests.

It is crucial, that you take time to search for a car finance broker that is right for you. Below we show number of factors you need to consider when financing a car.

  1. Your Credit Score

A majority of car loan brokers automatically run a credit check before offering any types of car loans in Australia. The problem with this is that if you have bad credit, you may be denied for a loan. However, not all brokers require a high credit score in order to provide a loan. If you know that you have a poor credit or no credit, you should look for a broker that specialises in offering loans to people with little or poor credit.

  1. Interest Rates

Interest rates are one of the most important features when it comes to car loans. These rates will determine exactly how much you will have to repay for your loan. The lower the rate, the less you will have to shell out the amount during the course of your loan. It is important to compare interest rates between different car finance brokers to find the best rate for you.

  1. Length of Loan

When comparing interest rates, you also want to determine how long you will have to pay the car loan back. A longer loan period typically means lower monthly payments. However, this also means you will have to carry along these payments for a longer period of time. You should take a close look at your budget and determine exactly how much you can afford to pay each month towards your car loan. This will help you find a loan amount that is right for you.

  1. Down Payment

Do you need a car fast, but you don’t have any money to use as a down payment? Don’t worry. There are brokers that offer car finance in Australia that only requires a small down payment amount, or even no down payment at all. It is important to find out right away how much down payment does the broker require, especially if your funds are limited. You can save yourself a lot of time and aggravation by asking this question early on in the loan process.

  1. Dealer or Private Sales

Don’t assume that just because you were approved for car financing you can purchase any car you want. Some financial brokers only work with dealerships and don’t allow for private sales. The truth is, however, that if you are looking for a used car, you can save a lot of money by purchasing your car privately. If you are considering a private purchase then you definitely want to find a broker that will work with this type of purchase.

In the end, you want to work with a car finance company, like Car Finance Australia, that will put your best interests first. They offer very low interests rates, as well as, same day credit approval. Their finance team can help you overcome various obstacles, such as proof of self-employment earnings, bad credit, and lack of down payment, and put you in a car today.