Chances are if you are reading this then you are in the market for a new car. Getting some new wheels should be an exciting time but while here at Bluebay Home Loans we love thinking finance, it’s probably not a part of the process which you look forward to. However, that doesn’t excuse you from falling into the trap of ‘just getting it done’ and not researching the options available. Doing this could mean you end up paying much more than you need to.
There are a number of ways you can finance your vehicle. So we’ve briefly explained some of the more common methods, to give you a head start on what’s the best fit.
A car loan involves the vehicle being the security. This means if you default on repayments, your car can be seized. However, rates are generally competitive due to the security.
A car loan may be the best option for you if you are purchasing a relatively new car; as model age restrictions may change the loan term at some lending facilities.
This type of finance allows you to borrow a lump sum from the bank and pay it back in regular repayments.
Personal loans can be secured or unsecured. Secured loans have a lower interest rate but you risk forfeiting an asset if you fail to meet repayments. In comparison unsecured loans don’t require security but higher rates are charged.
A Personal Loan may be the best option if you are looking to purchase an older model car, given that the criteria and terms are generally more flexible.
If you take out a car lease you are basically ‘renting’ the vehicle. Repayments are required for a set period of time and at the end you have the option of purchasing for a residual value.
If you would like some help in financing your new car please contact us on 1300 258 229 or using the contact form below and someone will be in contact to discuss your needs shortly.