Everything
About Car Loans.
Reasons for a car loan.
Feel like your car could do with an upgrade? Sick of riding Uber? Want to save the environment by purchasing an EV but you can’t afford it?
A car loan could be the answer. That’s just one reason but there are many why taking out a car loan can be a good idea.
The importance of research.
No matter your reasons, it’s important to do your research on what loan suits you best. And everybody knows that research takes forever! With LoanOptions you can compare and find the best loan for you within seconds! The car buying journey should be a fun one, stress free and with all the information at your fingertips. Cuz that's the way it should be!
Investments
More money in your pocket means more money for other investments and costs, maybe a down payment on a house or much needed medical fees.
Credit score
You want to build your credit score, to get yourself the best deal. Better scores, better deals.
You need a ride
You simply just need a sweet new ride.
Investments
More money in your pocket means more money for other investments and costs, maybe a down payment on a house or much needed medical fees.
Credit score
You want to build your credit score, to get yourself the best deal. Better scores, better deals.
You need a ride
You simply just need a sweet new ride.
Making it more simple for you .
It’s important to do your research on what loan suits you best. And everybody knows that research takes forever! With LoanOptions you can compare and find the best loan for you within seconds! The car buying journey should be a fun one, stress free and with all the information at your fingertips. Cuz that's the way it should be!
We make it simple for you. There are three easy steps to follow when applying.
Input.
Input your information in our AI options tool and it will calculate and present you with the best options available!
Remember, the more information you provide, the more accurate your loan options will be.
Compare.
Let our AI options tool do the work instantly! No waiting around!
With over 60 Lenders, our AI options tool will curate and personalise the best results based on your priorities.
Your Choice.
Now the easy part! Pick from the list and if you need further clarity, the platform can provide you with a granular level of detail to help find what you are looking for.
For a more personal touch our Customer Service Consultants are available to talk to you.
Secured.
A secured loan uses the asset being purchased, in this case the car, as security for the loan. If you the borrower can’t repay the loan, the lender can reclaim the asset to cover the costs. Although if the sale of the asset doesn’t cover the full amount owing, the borrower must pay the difference.
The benefits of secured loans is that they usually result in achieving a lower interest rates, due to the lower risk factors from a lenders point of view
Unsecured.
In an unsecured loan scenario the lender does not use any assets as a security (no collateral). This comes with a higher charge interest rates when compared to secured as the risk is more for the lender.
These types of loans are not generally for cars, because you can usually save money by using the vehicle as security. Some situations that an unsecured loan might be useful for a car, is if the car being purchased is not an acceptable asset for that specific lender, if the asset is too old or even if you wish to borrow more than the actual purchase price by a substantial amount to cover costs or customisations to the car.
Whether you are buying a new or a used car, financing options can vary. Not surprising, but getting finance for a new car is usually more affordable as interest rates tend to be cheaper.
If your car is a fossil (15 - 25 years old), some lenders may not even give you the time of the day. If you do not have an expert loan marketplace, who provides you with a large and diverse panel of lenders you may be left with an unsecured loan which will attract higher rates, meaning you pay more.
The length of your car loan can cost you money or save you money $$$. This makes it a very important consideration when you are thinking about getting car finance. As a rule of thumb, the longer your loan period, the smaller the repayment amounts but the more total interest you pay.
You should aim for a loan agreement that is affordable and allows you to comfortably make your repayments whilst minimising the interest. Be aware of any fees or charges for paying out your loan before the agreed period, as this can blow out your costs. LoanOptions reveals hidden fees and gives you confidence that you are getting the best deal.
When it comes to which lender to choose, you’re spoilt for choice. Banks, non-bank lenders and private lenders generally offer secured loans, and their rates can vary from being competitive to very expensive. Car dealers also offer finance, but would you ask your car salesman about financing? That's what we thought…Jump onto our loan marketplace, LoanOptions and find out for yourself!
You hear it everyday on your TV, news feeds, and radio. But what of it? The best thing to remember is to research, research, research!
Shop around to make sure you’re getting the best deal and tailor your loan agreement so that the repayment levels and interest rates suit your circumstances. You can do this with us, by comparing 60+ lenders instantly, so you know you are getting the best deal.
Reasons for a car loan.
While you don’t want to pay off your new car immediately (Otherwise you wouldn't be on our website), the bigger the initial down payment the lower your repayments and interest will be over time. Although the amount can vary depending on your income, cash flow and monthly expenses, putting down at least some deposit can also help secure you a lower rate with certain lenders. Finding the right loan option for you could give you the option of putting down a bigger deposit, which in turn will help you pay off your loan quicker!
Balloon Payments.
Some car loans offer balloon payments or residual payments. This means you pay off part of the loan with smaller regular repayments followed by a final large lump sum (this is the balloon bit). Whilst this may look like a good option, as it reduces the monthly repayments, you’ll have to pay interest on the balloon amount, bringing up the total amount repayable of the loan.
Comprehensive Insurance.
Insurance is a MUST as this is a mandatory requirement for a secured loan. Any lender will not provide funds or settle the loan without confirmation that the car is insured. Whether its an EV, 4WD, MackTruck it doesn’t matter. You will not get funds if you do not have an insurance policy (comprehensive insurance, not third party). When you take out car insurance, market value isn’t always enough, so try to find comprehensive insurance that offers agreed value, because in some instances, the loan balance may reduce SLOWER than the value of the car. This can create a risk of there being a shortfall if something went wrong.
Refinancing.
Feel like you're not getting the best deal? The loan market has changed for the better, and if you have an existing loan you can revisit to see if there are any new or competitive offers out there. The future is transparency! This is an attractive option for those that feel they might not be on the best interest rate, or maybe the repayments are a little too high. It is also an opportunity to revisit the correct loan term to be selected and any other ideal features you wish to have on the loan. Compare and save at LoanOptions! More Options. More You.
Secret fees.
The devil is in the details, and it can be more than a pain if you do not read the fine print properly or if not all associated fees are brought to your attention as a borrower.
Ask yourself these questions:
Are there any entry or exit fees?.
Entry/Exit Fees
Late Payments.
What are the late repayment fees?
Early Payments.
Are there fees for paying your loan off early?
Added Costs.
Are there any other added costs that could come up?
Still have questions?
If you have any questions or enquiries,
visit our FAQ bunker or give us a call
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