In recent years, the ability to purchase items on finance has become more popular and accessible in Australia. With the introduction of consumer-friendly finance options, Australians can now buy items such as phones, furniture, and appliances using finance plans. But one question remains – can you buy a used car on finance in Australia?
Yes…well, that was easy.
Ah, you didn’t think we would leave it there, did you? You’ll find various options available depending on the car’s age, make and model. While some you’ll need a deposit, others you’ll be able to get without a deposit. Yet, you may need to provide additional documents such as proof of income and employment history to secure financing – so get that printer ready.
How Does Car Financing Work?
Car financing can be broken down into two main types – secured and unsecured. Secured car loans are backed by some form of collateral such as the vehicle itself…with us so far? This means that the lender will take your precious ride from you if you miss payments. On the other hand, unsecured car loans are not backed by collateral, so even if you miss payments, you don’t need to worry about a tow truck arriving on your doorstep (hooray!).
When purchasing a vehicle from Cars4Us in Maryborough or another reliable company that knows its cars, you cannot afford to go into the process with no knowledge of financing. It’s so easy to make a poor decision. Knowledge will help you make an informed decision when it comes to selecting a lender and loan type. You have a phone, you have the internet…don’t let simple research pass you by. You don’t need a super-duper degree in cars to make good decisions.
For example, one loan option is a balloon payment loan (sadly, this doesn’t mean you get a balloon with each payment, although such a thing should exist for adults too!). Instead, it has a more boring meaning of paying most of the loan at the end. This can be beneficial if you’re looking for more flexibility, as it allows you to make smaller payments in the short term and then one large payment at the end.
This option is risky if you’re not one for forward planning – if you lack funds when the amount is due, you may not be able to keep your pride and joy.
What are the Benefits of Car Financing?
Car financing can be a fantastic way to purchase a car if you don’t want or have the funds to buy it outright. It can also help spread out the cost of purchasing a car, making it more manageable and affordable. Rather than one lump sum, you pay a monthly amount – each month, you’ll own more and more of your vehicle.
Furthermore, some lenders offer additional benefits such as free roadside assistance and maintenance plans, which can help you avoid unexpected costs or inconvenience in the event of an emergency. Consider these potential benefits when choosing a car finance option because it can make a difference to the agreement.
What Should I Consider Before Taking Out Car Finance?
Can you repay the loan? Always ask this question before taking any loan of any shape or any size. You should also research different lenders and find the best interest rate for your particular situation.
It’s also worth considering any extra costs associated with car financing – these may include insurance, registration, or even ongoing maintenance. Make sure you factor these into your budgeting so you can get a true picture of what it will cost to own the car over time.
Finally, read and understand all terms and conditions before signing any agreements – we know, this is boring. But it might just save yourself a financial disaster in the future!
