With daily living expenses constantly on the rise, it can seem difficult to be able to secure a car loan in Melbourne. However, getting one is very achievable, especially if you implement these useful tips.
Tip 1: Honesty is the best policy
It makes no sense to start the conversation with your broker with lies and broken promises. Be honest. Ensure you provide them with your correct financial information, such as income and debts, and also be honest about anything you can think of that might affect your credit rating or score. Once the broker has all the necessary and factual details, they can then provide you with an accurate assessment of your capacity to borrow, and then make recommendations to you that will help you become a successful borrower.
Tip 2: Don’t take the advert at face value
Often the advertised price for a car can be rather tempting and you will immediately think you can afford it. However, you may end up paying far more than what the advert stipulates. Why? Because car dealers often leave out other prices such as stamp duty and any taxes. That’s why you need to factor in a little bit more when you see the initial price.
Tip 3: Calculate your running costs
Your running costs refer to the amount of money you will spend once it is in your possession. This will include registrations fees, petrol, vehicle insurance, as well as roadside assistance and any maintenance/servicing. Apart from these ongoing costs, your main regular payment will be your car loan repayment. Do these figures fit within your budget?
Tip 4: Value of the car
Depending on the car that you’re looking to get, all your expenses will be different. From the amount of your repayment right through the how petrol you need and how much it will cost to maintain. That’s why you need to consider whether or not you should be looking at a cheaper model, or if you can legitimately afford that luxury brand.
Tip 5: Car loan interest
People often only factor in what they can afford right now. But with interest payments comes the need to budget in extra costs over time. Therefore, can you afford to pay off the car, service it and add fuel, as well as make interest payments? Think long-term. You may take longer to pay it off, but at least your repayments will be less. Plus, you can always make lump sum payments along the way as well.
For more information or if you are looking for a vehicle finance broker to help you with your car loan application, contact us today!