2 crucial steps to take before a new car loan
There's nothing quite as freeing as roaming down an open highway, or even just having a car parked in the garage ready to take you on an adventure. If that's a dream of yours, recent data suggests you're not alone. Roy Morgan Research data indicates that over the end of 2014 and beginning of 2015, the number of Australians intending to buy a vehicle in the next year has risen significantly to almost 600,000 people.
But remember: Outside of a house or apartment, a vehicle is likely to be one of the biggest purchases you make in your life, and one that's likely to require a safe and sound car loan. That's why it is important to be prepared. With this in mind, let's take a look at what you can do to get ready for new car finance.
Know what you can afford
We've all set our eyes upon one make of car or another and decided that it has to be ours. No matter what your taste, everyone has a dream car. But it's important not to let your passions get the better of you and enter into a financial agreement that will put you out significantly.
Stay within your means, and we're sure you will find the right car. Don't know what you can afford in terms of car finance? Then make sure to have a look at our handy car loan calculator. Simply punch in the numbers and it'll let you know your ballpark.
Plan ahead on the payments
While it might not be as significant as a mortgage, taking out new car finance is still a big commitment, and can have a term of up to seven years when you work with AAA Finance. Determining your payment plan allows you to know exactly how much you are spending on the costs ahead of time – no surprises down the line.
You can even minimise your payments for now and meet the remaining costs in a lump sum at the end of the term. This is a balloon payment, and is great for those who want to get on the road quickly and still have cash in their pocket, or those taking out a no or low doc car loan. The Australian Securities and Investments Commission's MoneySmart site notes that this is good for short term affordability – but make sure you can afford the lump sum.
Our panel of 23 lenders offers a wide range of vehicle finance options, no matter what your dream car may be. Take these simple steps to getting yourself prepared and then talk to one of our specialists. We could have you up and running within 24 hours!