Car Finance
Car Finance
Car Finance Interest rates on car loans can vary between lender to lender. We have a comprehensive number of products available to you so call our office on 1300 256267 to see what we can do for you.
One of the most common questions that is asked in relation to Car Finance Interest Rates is, “what is your best interest rate?” This seems to be the most important question for a client looking for a car loan.
Whilst that is very important, most clients do not consider the term that best fits the loan. Cars are depreciating assets so that means the value does not go up, like a house would, the car value goes down. So it is equally important to pay the Car Loan off as quickly as you can and have the term of the loan geared for that.
Many times clients focus on the payment but don’t care how long it takes to pay off. If you can afford it, pay the loan off as quick as you can – it is basically forcing you to save.
With car finance interest rates, finance brokers have a range of lenders available, the variation in interest rates can vary, as firstly it will be based on the age of the vehicle and how you are purchasing it and this will shortlist down which lenders would actually approve the car you are purchasing.
As mentioned above, some lenders apply their interest rates on the age of the vehicle, other lenders may use a “rate for risk” scoring system. To accurately determine what interest rate and which lender would best suit your circumstances, we would need to know all your strengths in your application, your credit rating and the activity on it, and the value of your car you are purchasing and how much you want to borrow against it, whilst using it as security over the loan.
This would mean that we require a full car finance application – then we could determine the best interest rate and lender for your proposal to achieve the best car finance interest rate.
Car finance interest rates with the main lenders in the motor finance industry are mostly fixed for the term of the loan – generally two years to seven years, which would mean the rate won’t move up or down when the Reserve Bank increases or decreases interest rates – the interest rate will stay the same throughout the term of the loan.
Some of the best car finance interest rates in the market can be as low as 6.00%. but these would usually be available for very strong applicants with good past borrowing experience and a good asset position. Also the vehicle price, how much is being borrowed against it and the term of the loan could also change what interest rate you would qualify for.
Although car finance is usually a lot easier to obtain approval on than other finance, each and every lender has their own unique way of determining the interest rates available and this can make it all very confusing for the borrower. Good professional brokers should be able to break this down quite quickly as they should understand the lender’s policies and which option would best suit each individual application.
So call our office today on 1300 256 267 to discuss the best way forward – It will only take a few minutes of your time.