Have you been considering purchasing a new car and have decided 2018 will be the year you do it? If so, it is important that you understand car finance so that you can find a loan right for you. To help make things simple, we have answered some of your frequently asked questions!
How old can a car be to qualify for a car loan?
This varies on a case by case basis, however typically a car must be 6 years or under to qualify for a secured car loan. The age of the car will be taken into account when you apply for finance, and when your loan is approved the loan term may take this into account.
How does car finance work if I have a trade in?
If you’re planning to trade in your existing vehicle, you’ll need to obtain a payout figure from your current lender. Once you purchase your new car and the settlement takes place, the previous loan is paid out and closed, and a new one is opened for the new vehicle.
What is the maximum loan term for a car loan?
The approved loan term for a vehicle will depend on the age of the vehicle and the amount of finance required. This is to protect you as a customer – to make sure that you are paying off a similar amount per year to the depreciation of the car you purchase.