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Getting a Car Loan – Everything You Need To Know
March 4, 2020●
9 minute read●
Readily available car loans
Aside from buying a house, buying a car is typically the next biggest purchase most Australians will make in their lifetime. Ideally, you would be able to pay it all in one go but in reality, most people need financing to afford a car. Luckily, times have changed and getting a loan is less stressful than it used to be. Online lenders like Jacaranda won’t have you stand in a queue for hours, you can apply from the comfort of your home and you may get your outcome within 60 minutes (if you apply during our business hours). Let us walk you through everything you need to know about getting a car loan.
What is a car loan?
A car loan is a personal loan for the specific use to purchase a car. Car loans can be used to buy a new or a used car and can cover all or parts of the costs. You repay your loan amount plus interest to your lender over a set period of time, called repayment term. Your eligibility for a car loan depends on the criteria set by the lender. Some car loans are bound to very specific conditions such as purchase price or whether the purchase is made through a private sale or a dealer. That’s why you should do your research first before you commit to a lender.
Let’s introduce Jacaranda Finance
Hi, nice to meet you! We are your friendly online lender that provides access to personal loans to thousands of Australians. If you meet our requirements, we may be able to offer you a car loan or a personal loan of various sizes. Our application process is 100% online but we are always just one click away. Our customer service team is happy to help. If you have any questions down the track, you can always send us a message or give us a call.
What sets us apart from other lenders? Responsible lending is important to us. While we want to provide access to personal finance to as many Australians as possible, we wouldn’t let you borrow money we think you won’t be able to repay. That’s why we assess your financial situation thoroughly. But we also see the bigger picture. You have a bad credit rating based on a mistake you made up to 7 years ago? We know that can happen and won’t base your outcome just on that!
Do I qualify for a car loan?
If you are wondering if you are eligible for a car loan, you may be surprised! We offer a wide range of car loans for different people in different circumstances including car loans for pensioners, car loans for students, and car loans for people on Centrelink. But more details later. What do you need to qualify for a car loan?
- Be 18 years or older;
- Have a driver’s license;
- Have a mobile number and email address;
- Receive a regular income for the last 3 months into a personal bank account.
That’s it! If you tick all of the above boxes, you are very welcome to apply for a car loan with Jacaranda. If you have any further questions about eligibility, get in touch with our friendly customer service team..
How much money can I borrow?
Jacaranda car loans range from $5,000 to $35,000. However, you should always think about how much you can comfortably afford to repay, too. As a rule of thumb, you shouldn’t spend more than 10% of your take-home income on a car loan. While mobility is important, owning a car may come with additional costs to think about when planning your budget: Necessary expenses such as registration fees, insurance, and renting a parking spot quickly add up.
How much do I have to repay?
Initially, you will choose how much money you want to borrow and how long you want to take for repayments. The longer you take, the more interest you pay, that’s why it may be sensible to choose a shorter repayment term if you can comfortably afford to repay more. Your repayments including the interest rate. Your car loan interest rate will be clearly stated in your contract so everything will be made crystal clear before you commit to a loan. We also give you an overview of potential costs on our costs page, if you are curious.
If you want to workout repayment costs upfront, you can use our payment calculator at the top of this page to play around with repayment terms.
How do I apply?
Our application process is 100% online and so easy that most people submit their application within a few minutes. We still recommend you grab a cuppa tea and get comfortable but you can apply on the go from your phone if you prefer. You can speed up the application process if you prepare the necessary information upfront: Your personal details such as name, DOB, address, driver’s license, email address, mobile number, and online banking details.
Step one: Fill in the application form.
Firstly, scroll up to the top of this page to find our loan calculator. Using the slider, select the amount you’d like to borrow and the repayment period and click ‘Apply Now.’ You’ll then be taken to our 100% online application form. This should only take a few minutes to complete. We will ask you to fill in your personal details and you are good to go.
Step two: Assessing your application.
Let us do the hard work while you can relax and wait: We use the latest in safe banking technology to have a look at your current finances. Our experienced team will access a read-only copy of your bank statements to make sure that a car loan is suitable and affordable for you. You may have your outcome within 60 minutes if you apply during our business hours and we don’t need additional documents.
Step three: Get moving.
Hooray! Once you get the green light for a loan, we can send you a loan contract. All costs and fees will be stated and we ask you to thoroughly read it before you agree. When we receive your signed contract, we will transfer your funds as soon as possible. If everything goes well there may not be long before you have the funds to purchase your dream car!
What car loans do we offer?
At Jacaranda, we offer a wide range of car loans to our customers. Anyone who meets the minimum eligibility criteria can apply. Additionally, we can offer a car loan to people with specific circumstances that some other lenders may reject. We want to give everyone a fair chance to get access to personal finances. We can offer car loans from $5,000 to $35,000 that can be repaid over a period of 1 to 5 years.
|A car loan for pensioners
||Mobility is important and receiving a pension shouldn’t stop you from driving a new set of wheels. We may be able to offer you a loan that suits your budget.
|A car loan for people on Centrelink
||Getting a loan while receiving Centrelink can be tricky. But most Australians find themselves in a sticky financial situation at some point in their life. We want to give everyone a fair go, especially when they need it the most. That’s why we treat Centrelink payments just like any other regular income.
|Car loans for people with bad credit
||Most lenders assess your eligibility based on your credit score – not Jacaranda. While we will conduct a credit check, it’s not the only factor we assess your application on. One mistake in the past shouldn’t necessarily affect your financial future.
What can I use my car loan for?
As previously stated, car loans are personal loans with a purpose: Of course, a car loan should be used to purchase a car. However, there are other car-related expenses you may want to cover with a loan such as rego fees or repair costs. In that case, we recommend you to look into personal loans, this may be a good option for you.
Otherwise, a car loan can be used to purchase a new or used car. Financial experts recommend that you put down 40% of the full price and get a loan for the rest of it. But we know you may find yourself in a difficult financial situation and still need a car, so just see what works for you personally.
Another option is to refinance an existing car loan. If you have a car loan already, it may be sensible if you can get a better credit rate with a new loan to refinance your car loan, use the new loan to pay off your debt and then repay with a better interest rate. This could be the case if you either find a better offer or your financial situation has changed and you can afford higher repayments over a shorter repayment term.
Does my credit rating affect my interest?
In short, yes, it does. Your credit rating is a score based on your financial behaviour in the past. Missed bills or unpaid debt can have a negative effect on your score for 7 years, that’s a long time! The credit score represents the financial risk a lender is taking when lending you money, that’s why your interest rate will be higher if your credit score is lower. However, repaying a loan or debt can also have a positive effect on your rating and get you back to a better score over time.
At Jacaranda, we strongly believe in responsible lending. What does that mean? While we would love to be able to help everyone, we don’t think it is ethical to lend money to people who may struggle to repay it and therefore making them financially worse off than better. Taking on debt to afford a car is a big decision and we want to provide you with the knowledge you need. That’s why we keep it transparent: All our costs and fees are stated online on our costs page and in your loan contract. No hidden fees, no extra costs.
How can I contact you?
If you have any further questions, we are always happy to help. We recommend you have a look at our FAQ page first, some questions may be answered there already. If you want to speak to someone in person, head over to our contact page and send us a message or give us a call during our business hours on 1300 189 823.
Our business hours are:
Monday to Thursday: 8 am – 6 pm
Friday: 8 am – 4 pm
Saturday: 8 am-12 pm
Can I apply right now?
Of course, you can! You can submit your application at any time of the day or night. That’s the great thing about online applications, you can apply from anywhere at any time. However, you may get faster results if you apply during our business hours as stated above. What are you waiting for? We are looking forward to getting to know you!
Find out more about no deposit car loans.