Updated as at 16th of September 2019.
Well, you're in luck. In this article, we take the time to answer some of the more commonly asked car loan questions.
Armed with this information, you'll be able to source the right car loan and get your new wheels on the road as fast as you can say: “ready, set, drive.”
How long do I have to repay my loan?
You can choose your loan term. That said, most people will either take out a three or five year car loan. At Mortgage Choice we can help you source the right car loan for your needs, so you can spend less time worrying about financing and more time pondering what make and model vehicle you want.
What information is required when applying for a vehicle finance?
When applying for a car loan, you'll generally be required to show your driver's licence, two pay slips, a copy of the contract for the purchase of a car, and if applicable, a recent rates notice and a trust deed.
I'm self-employed. Can I still get a car loan?
Yes you can. You may even be able to claim part of the car's costs, including loan interest, as a tax deduction. You may not have two consecutive pay slips, but your mortgage broker will be able to use your latest tax return to prove servicing.
Will I be charged for an early payout?
In some instances, if you want to get out of the loan early, you may be charged an early termination fee. Generally speaking, car loans are fixed rate products. Just like a home loan, if you break out of your fixed rate early, you may incur costs. Your broker can help you with a loan structure that is right for you.
Does the vehicle come insured?
No, you'll need to take out your own comprehensive car insurance. As an owner and operator of a private vehicle you are required by law to have Compulsory Third Party insurance. In addition however, you should look at taking out comprehensive insurance.
What if my financial situation changes?
You should speak to your broker immediately, particularly if your financial situation means you'll have trouble making loan repayments.
Can I sell the car during the loan term?
Yes, but it may be harder to sell your car for a good price as there's a loan attached to it. The best solution is to pay off the loan in full before you sell.
What's zero per cent p.a. finances?
Zero per cent p.a. finances means no interest will be paid during the loan period. While this sounds like a great deal, zero per cent finance is rarely as straight forward as it sounds. In most situations, a car yard will only offer zero per cent interest because they have increased the upfront sales price of the car. Before being lured in by this particular deal, it's imperative that you read all the loan terms and conditions.
Can I get a pre-approval before purchasing?
Yes, you are able to get a pre-approval so you can shop around for your new car knowing what you can afford. Speak to your Mortgage Choice broker to find out more.
Can I get help finding a car?
Yes, Mortgage Choice offers a car buying service that gets you the right car at the right price, delivered to your door. Use our national buying power to get a great deal with no haggling & no hassles!
Now that you know what's involved in the car loan process, now could be the perfect time to speak to your Mortgage Choice broker about your asset finance needs.