Category: Car Finance

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Car Finance Refinance and Refinancing

How To Refinance A Car Loan?

Learn how to refinance a car loan
Learn how to refinance a car loan and find out how you could benefit from reduced rates, improved loan terms and easier repayment structures.

Buying a car is an exciting milestone that gives you that freedom you have always longed for. You can say goodbye to bus and train timetables and take off for weekend getaways with ease. Getting to and from work is now a breeze, and you can get around as you choose.

There are so many benefits that come with a car. But do you have the best loan for you? Refinancing your car loan can land you a better deal and ensure you pay back less over time. Here’s how to refinance a car loan.

How To Refinance A Car Loan?

Wondering how to refinance a car loan? The process is quite easy, but you do have to do your research to make sure you are getting the best deal. Refinancing your car loan means replacing the existing loan with a new one under new terms.

Before looking at how to refinance a car loan, let’s take a look at the benefits it can offer and why you might consider it.

refinance car

Why Refinance A Car Loan?

There are many reasons you might be considering refinancing your car loan. If you are in a position of good credit and have been making your repayments on time each month, then refinancing is a great opportunity for you to secure a lower interest rate for your loan. This can help you save money and also reduce the monthly repayments.

Here are some of the benefits that come with refinancing:

  • You can find a better interest rate. This will save you over the course of your loan and you will end up paying back less money overall.
  • You have the opportunity to extend the length of your loan to make it easier for you to pay back.
  • You also have the opportunity to remove your guarantor by refinancing the loan.
  • You can change the type of loan you took out, ie from fixed to variable interest or from secured to unsecured.
refinance car loan

What To Consider

Before you take decide to refinance your car, there are a few things you should consider:

  1. The value of your car: the value of your car is different to how much you paid for it in the first place. Cars aren’t considered a great investment and they usually devalue the minute you drive out with them. Owing more money than the car is currently worth makes you a high risk to a lender and can be more difficult to find a new lender who will refinance your loan. If you default on your loan, the lender can seize your vehicle as payment, but if it is worth less that your loan, then they won’t get the full amount owed.
  2. How long you have left on your loan: car loans are significantly shorter than mortgages, so it is worth looking at how long is left on your loan to consider whether it is worth it. If you have less than a year left, then the cost in fees to change lenders could end up more than you save on a new loan.
  3. Work out the costs: you also need to work out how much it will cost you in fees etc, compared to how much you save on interest to see if it is worth your while. This will vary from lender to lender.
car loan refinance

Types Of Refinance

When it comes to how to refinance a car loan, there are a few options available to you.

Car loan: you can take out a new car loan with a new lender. This new car loan will take over your old one and offers you the perks of a lower interest rate.

Personal loans: you can take out a personal loan with a new lender to cover the cost of a car loan. You can use the money from the personal loan to pay back you car loan provider and then pay off the personal loan instead.

How does it work? Once you find a new provider, you can choose the type of refinance you are interested in. The money you borrow from the new lender is then used to pay off the balance on your previous car loan. As a result, you enter into a new contract with the new lender.

How To Refinance A Car Loan?

Now that you know the benefits that come with it, you might be wondering exactly how to refinance a car loan? If you are wondering if you qualify then speak to the experts at the Australian Lending Centre.

We offer fast and reliable vehicle refinancing options to help you save money and get a better deal.

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Car Finance

Top Tips for Buying Your First Car

Top Tips for Buying Your First Car
Looking to buy your first car?

There are many obvious tips for buying your first car out there. However, there are a lot of key considerations which are often missed out. Buying your first car is super exciting, but there is a lot to do beforehand. When you prepare yourself and plan ahead, the process is much easier. It can also help to ensure that you end up with the best car for you.

Bear in mind, it is one of the biggest investments we make in our lives with a lot at stake financially. There’s new cars, secondhand cars, dealerships, private sellers, and auctions houses out there to suit your every need. However, they can make your car buying journey even more confusing.

Why you need to know these tips for buying your first car

This article aims to help first-car buyers understand the process as best as possible. It will also outline the steps you need to take towards owning your first set of wheels. Here are 7 important tips for buying your first car to keep in mind while shopping.

1. Be honest with yourself

When looking for a new car, you must be honest with yourself. You need to figure out exactly what your car will be used for. Consider things such as:

  • The weather where you live (hot, cold, rain, snow)
  • Where you need to go (class, work, adventures)
  • Your lifestyle
  • The driving conditions

Then, it is a good idea to look at the features, options, and price of your desired car.

2. Budget and financing

Secondly, you need to take a very realistic look at your finances. This is one of the most important tips for buying your first car because purchase price aside, there are lots of added costs that come with owning a car. Consider things such as:

  • Maintenance
  • Insurance
  • Gas
  • Repairs
  • Parking
refuelling

Learn more about the maintenance and repair costs here. Then, you should look at your loan. A down payment usually isn’t required for your loan, but making one is often a good idea. Then, you won’t have to borrow as much, and your repayments will be lower.

3. Look at your options

Number three of these tips for buying your first car is crucial. Shopping for your first car is easier for you than it used to be. The internet offers plenty of information and a wealth of sellers near you. This means that you have far more options that are more likely to fall into your price range. You are also able to look at your options and narrow down your choices.

Since we are discussing first cars, it’s likely that you will be looking to buy a car on a budget. This makes Autotrader a fantastic place to do your research. You’ll find some great prices and since new cars lose so much value after leaving the garage, a second-hand car can be a far greater investment.

If price isn’t a concern, or if you’re looking to take out a loan so you can afford a new car then there are is also plenty of options. If you’d like to narrow your selection down based on specs alone, then Cars Guide is a great website to do just that. Similarly, Car Advice is a great platform for pitting similar cars against each other in thorough reviews. Another good website is Carsales.com. Not only can you read reviews, but also buy both new and used cars!

For new cars, you should ask multiple dealers for quotes on prices. For used cars, be sure to ask about the vehicle’s history including any accidents.

4. Apply for a loan

While it may seem weird to shop for a car loan before shopping for a car, it’s very useful. It allows you to gain an idea of how much you can borrow. On top of that, you also learn at what interest rate you can borrow. This means that you won’t have to make financial decisions while you’re at the dealership.

Don’t wait until the last minute, check out your car loan options now. This way, you can ensure that you’re getting the best rates possible.

budgeting for firat car

5. Know your credit score

Knowing your credit score is very important, not just for car loans, but for life in general. Your credit score will help to determine the interest rate you will pay on a car loan. If your credit score is good, you will be able to achieve a more favourable rate. This will then affect your overall budget. This is one of the tips for buying your first car which is not usually considered but is very important.

Through your credit card provider, you will be able to get your credit score for free. Make sure you check your credit report before you want to buy to allow time to improve it if need be.

6. Test drive

Once you’ve settled on a few cars that suit your need and budget, take them for a test drive. This way, you can see how each one feels for you and performs in general. Try to drive them all on the same day so you can compare them with fresh eyes. It is always a good idea to call ahead and make appointments.

This will also help you gauge the way customers are treated at each dealership.

7. Close the deal

Once your research is done, you know what you want, and your financing is done, it is time to negotiate your deal. Remember that you’re in control. Then, you can focus on reading the contract carefully and closing the deal. Before you sign, make sure you understand the terms of any financing and warranty agreements.

buying first car

Once you drive off, make sure you always make your car payments. That is the last step to the process. When you need help regarding your first car loan, contact the Australian Lending Centre. With fast, easy, and professional service, you can’t go wrong.

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Personal Loans Car Finance Refinance and Refinancing

What Is a Good Car Finance Rate?

what is a good car finance rate
Buying a new car is really exciting, but finding the right finance rate depends upon your individual circumstances.

Buying a new car is an extremely momentous and exciting occasion in your life. Whether it is your first car and a second-hand model, or your fifth car and you have opted for new off the shelf. The one thing that factors into both is being able to pay it off. Finding the right finance rate for your car is very subjective, and a lot of it has to do with your individual circumstances. So what is a good car finance rate?

Let’s take a look at this further.

What is car finance?

Having a car is almost a necessity in life for most people. From travelling to and from the office to dropping kids off at school and extracurricular activities, it can be hard to get by without them. In fact, some families even find they need two cars to make things work. The problem is, cars tend to gobble up money – fast.

If you don’t have enough savings to go out and buy a car (new or secondhand), taking out a car loan is a great option. It allows you to pay back the car in manageable instalments so you don’t feel the full hit of the purchase all at once.

Of course, it does come with a catch. Just like any other loan, you repay it with interest to the financial institution you borrowed from. So let us take a look at what is a good car finance rate?

excited buying new car

What is a good car finance rate?

As previously mentioned, this often depends on your individual circumstances. But there are a few key factors that need to be considered when taking out a car loan. All these factors help determine your finance rate and how much you end up paying in the long run:

Interest rate

This is, of course, one of the biggest components to factor in when weighing up a car loan. The interest rate is expressed as a per annum number. Before taking out a loan (any loan) you need to know what that interest rate is. Your credit score can affect how much interest you pay. If you have bad credit and have a history of not paying off loans, a traditional lender is unlikely to take a chance on you. You may have to look for a non-traditional lender who will offset the risk with a higher interest rate.

The loan period

This can be as short as three years or as long as five years. If you opt for a longer-term loan it means your repayments each month will be smaller. However, you end up paying more interest overall.

The repayments

In general, these are made monthly. However, you can always discuss with your lender if you would prefer to pay these off fortnightly or weekly instead. If you pay it off quicker, it can mean you will end up paying less interest in the long term.

Fees and charges

It is always important to look into other fees and charges that might be involved. These can add to the loan amount significantly.

Get the best car finance rate
There is a lot to consider before applying for car finance

How to get the best car finance rate?

Now that you know what is a good car finance rate and the factors that contribute to it, you can look at how to get the best rate for yourself.

You have a couple of options when it comes to taking out a loan:

  1. Take one out with the dealer: the finance rates are often higher with this option, but there is no planning required and it’s very convenient.
  2. Take one out with a bank or non-traditional lender: this option is less convenient, but often gives you the best rate. You are not relying on the dealer for both the price of the vehicle and the loan, so it takes away a bargaining chip.

The best way to get the best rate is to do your homework. Shop around and take a look at who is offering the lowest rates and whether the terms they set work for you.

What if I want to change my loan?

Firstly, it is important to determine whether refinancing your car is the right step for you. What exactly is it and what does it entail?

It essentially involves taking out a new loan to pay off your own loan. The main idea behind refinancing your car is to save you money in the process. If you manage to reduce your monthly repayments then it can free up that cash to be spent on other financial commitments.

There are four reasons you might look at refinancing your car:

  1. Lower monthly payment
  2. Lower interest rate
  3. Longer loan term
  4. Shorter loan term

If you are unhappy with your current situation and are looking into what is a good car finance rate, then this may be the best option for you.

Getting the right help

Whether you are in the stage of looking at different cars on the market and working out your finance options, or perhaps you bought a car recently (or not so recently) and are looking at changing your loan. It is always good to get a professional opinion. The team at Australian Lending Centre will look at your particular situation and offer the best advice based on your needs. Get in contact with us today.

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Personal Loans Car Finance

How to Get A Classic Car Loan on a Budget

classic car loan

Collecting classic cars is one of the costliest hobbies around and it is a little trick to get a classical car loan. The price tag on such a baby is sure to cause a panic attack in many people. People found ways of getting a classic car loan despite having a normal budget that in certain circumstances would destroy their dreams of being at the wheel of a vintage beast. If you’re aiming at getting a classic loan but your budget is nothing out of the ordinary, you might find this guide very handy. Let’s take a look at the steps you have to take in order to get classic car loans on a tight budget.

Classic car loan Guidelines 

Consider private lenders 

Credit unions and banks are not a good source of car loans, especially when you juggle with a couple of loans already. And even if they offer you the car loan you require, it will probably have a huge interest rate and it will be secured on your house. Private lenders, on the other hand, have a wide variety of car loans that come with affordable interest rates. What’s more, many of them are willing to tailor repayment plans for their clients.

You can find a private lender pretty easily. Just surf the Internet for a while and you’ll definitely find one. Stay away from lenders who ask for deposits or any other sort of down payment.

Hire a broker for your classic car loan

One that specialises in car financing, to be more precise; if you can’t seem to find a good deal, no matter how hard you try, such a broker can do some research and get back to you with one.

Moreover, a car broker can easily save you some funding, as well as the hassle of doing all the research on your own. Brokers collaborate with a lot of lenders. Sometimes you don’t even have to pay the broker because he works on a commission. In other words, if he gets you the dream-deal, he’ll get a certain sum of money from the lender he hooked you up with. This is how you save money by hiring a car financing broker.

Leasing

Tons of classic car enthusiasts choose to lease vehicles and then purchase them. This works perfectly for those people who can’t afford to buy a classic car with a down payment or can’t find a lender that’s willing to hand them some dough. After leasing, you can purchase that vehicle outright and you’ll know for sure how efficient the car is and whether or not it’s as worth it as you thought it would be initially. This is the best alternative to car loans you have (and the safest, to be completely honest with you).

A HELOC 

A Home Equity Line of Credit could actually provide you with enough funds to purchase the classic car you’ve been dreaming about for so long. Of course, you have to own quite a large, modern house that has a lot of equity in it. As you might know, a HELOC is a loan that’s secured on your house, which serves as collateral. If you fail to repay the loan, the lender can place a lien on it and sell it. The HELOC, therefore, should be your last resort. The Home Equity Line of Credit usually serves other purposes, but it’s totally possible to get a car with the money that comes from it.

Secured or unsecured

You’ll have to determine if you want an unsecured loan or a secured one. Under a secured one, you’ll get more money and lower interest rates. Under unsecured car loans, you’ll get a more limited amount of money and higher interest rates. But then again, an unsecured loan doesn’t pose a threat to your assets. If you fail to repay it, the worst thing the lender can do is to sue you. Keep in mind that he can get the right to place a lien on your assets even in this circumstance.

Extra caution is therefore advised. You certainly don’t want to be living in a Cadillac, as cosy as it might be. Think twice or even thrice about this issue and make a decision you won’t live to regret after a while.

Concluding Remarks 

Classic car loans are a great way of finding the car you want to get but can’t afford to purchase outright. Australian Lending Centre can provide some really valuable advice when it comes to taking advantageous car loans, as well as the financial products themselves. Make an enquiry on the website and you’ll most definitely find a car loan that suits all your needs and comes with an affordable interest rate and a good repayment plan. We hope you’ll get to be at the wheel of that shiny, vintage car you’ve been dreaming about for years on end.