Purchasing a new a car is a major financial decision, possibly one of the biggest you might ever make, coming in second only to investing in a new home. The thing is, having a car isn’t usually a luxury, it’s a necessity. In many areas public transportation still very much falls short of people’s needs, so the only answer is to drive your own car, whether it be to go shopping, take the kids to school, to go to work, you need wheels because walking isn’t often an option in a country as big and sprawled out as Australia is!

So, the problem is that cars are expensive, and the upfront cost is a big hurdle for many people who are already struggling with the ever-increasing high cost of living. That’s where car finance comes in, giving you the cash boost you need to make your purchase happen without breaking your bank!

Let’s examine the advantages of working with a financier to get you behind the wheel on your way to where you need to be!

No Money Down – The first advantage of financing your car purchase is that it gives you the ability you to buy the car while paying very little to nothing upfront. While it might still be wise to make a deposit, you can quite often receive financing for 100% of the car’s cost. Most people don’t have enough savings on hand to buy a car outright, or that money might already be tied up in a home deposit or other important investments. Plus, no one should have all of their finances spoken for and have to live without a safety net! Car financing gives you the opportunity to space your repayments out over time, instead of having to take a major blow to your finances.

Builds Up Your Credit –  These days your credit rating is more important than ever, it can make the difference between getting what you need and going without! By having your car financed you can build up and improve your credit score and history. If you are responsible about making your repayments on schedule and for the full amount, your score will increase. Having a strong credit history established will enable you to make future financing goals possible, things like unlocking more favourable car loan rates, and improving your chances of getting approval for a future home loan.

Secure Lower Rates – If you go with secured car financing you will enjoy lower rates than if you had gone the unsecured finance route. The reason for this is that with secured financing the collateral for the loan uses the car you purchased. This results in your lenders being more comfortable financing your car than they would be making you an unsecured loan because they have something to fall back on if the borrower defaults on the loan- something you should never, ever do, because your credit rating will be ruined and worse yet the ‘repo man’ will be driving your new car away! Always be sure you can make your repayment schedule safely before you enter into any agreement.

Using financing to purchase your new car is a great way to drive into your future!

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