Looking for your next car?
Deciding to purchase a new or used car is a big decision. If you are looking to purchase your first car or your next car, following these 4 simple steps can save you time, money and the stress of dealing with the banks, car dealers or private sellers, making it easy 4 you.
STEP 1: Budget
While this may not be the most exciting step, working out a budget before you start shopping for a car is the most important one.
You need to work out an amount that you are comfortable spending on your car, whether this is weekly, fortnightly, or monthly.
When setting your budget be sure to consider;
• the vehicles potential running cost
Once you have a figure you are comfortable with you can work out how much you can afford to borrow by using an online payment calculator. From here you will know how much you can afford to spend when looking for your next car.
STEP 2: Seek a Pre-Approval
A pre-approval works by a lender agreeing to loan you a certain amount of money before you head out to purchase a vehicle.
Knowing you have your finances ready to go through pre-approval will give you more confidence when negotiating with car dealers. Car dealers will take you more seriously knowing you have done your homework and worked out your limits.
Even if you have bad credit you can seek a pre-approval. By speaking with a broker, they will be able to complete a credit health check to determine your credit score which will then determine your borrowing power.
A number of factors determines your credit score;
• age of your credit file
• the number of time you have enquired/applied for finance
• references from previous credit providers, to name a few.
If you have never applied for finance before you may not have a credit file. This is not a negative thing. There are many other aspects that can be used to determine if someone is credit worthy.
For example, if you are a renter a lender can request a rental reference form your landlord/real-estate agent. A strong history of saving can be another powerful reference in lieu of previous credit history.
STEP 3: Find The Car That’s Right 4 You
Once you have a pre-approval you can start looking for your next car.
Whether you are looking at cars in a dealership or a private sale, we will be able to help. We can even help to find a car for you, saving you the hassle of negotiating with car dealers.
One thing to keep in mind when purchasing a car through a private sale is, unlike purchasing a car through a car dealership, not all lenders will be able to finance your on-road costs (stamp duty and registration). These would need to be paid for down the track, after your finance has settled and the registration has been transfer into your name.
STEP 4: Taking Delivery
After the test drives, negotiations and finding your car, you are finally ready to complete your application.
To do this we will contact the seller, or dealer, on your behalf and request an invoice which will detail the type of car you have purchased and the purchase price. In the case of a private sale we will also complete a vehicle inspection.
Once the invoice has been returned we will prepare the finance documents for you to sign. From here your application will go back to the lender for settlement and payment will be made directly to the seller.
Now all you need to do is enjoy your new car!
If you are looking to purchase your next car, or perhaps it is your first car, Car Finance 4 You can help make the process easy.
Contact one of our expert and friendly team members today by clicking Apply Now or call us with any questions you may have on 1300 TO APPLY (1300 862 775).