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Car Loans Canberra
January 13, 2021●
5 minute read●
As Australia’s capital city, Canberra is a significant metropolis brimming with financial lenders and borrowers alike. If you’re considering buying or leasing a car in Canberra, you’ve stumbled on the right piece. Whether you’re a visitor trying to navigate the numerous roundabouts and somewhat complicated layout on your way to Lake Burley Griffin, or a resident used to making your way down Commonwealth Avenue, there’s a deal for you. In this article, we’ll take you through everything you need to know about car loans in Canberra.
How do I get a car loan in Canberra?
Driving in Canberra is a breeze; the traffic is light, and the one-way streets are few. Canberrans also enjoy the benefit of having several financier options as a perk of living in the nation’s capital, as one of its largest cities. Many lenders willing to loan you money are also online and have several resources available that can aid your application process. You can also procure financial experts who can intervene for you and make finding the right lender that much easier. Finding the right financier is beneficial to you for several reasons. Not only will you get better rates, but they can also help you fast track your process and offer other customer-friendly options afterwards. Of course, you are under no obligation to do that, but it’s certainly worth a thought if your credit rating isn’t healthy.
One of the first things lenders will request is a copy of your credit file. You can download it online weeks before they ask and make sure it is free of blemishes. Some money lenders are unwilling to cater to borrowers below a specific score, while others do a business to provide their services to people with bad credit ratings. However, it is usually at a higher rate, so you should do your best to guard your creditworthiness.
The pool isn’t only open to people with bad credit. Less than likely candidates like students can still get a student car loan. It’ll often involve you getting a guarantor, but there are options available for people in that demographic. Similarly, individuals with disabilities or people who make unsteady income can also find great deals in Canberra. You have to dedicate more time to finding the right option.
How do I compare Canberra car loans?
As vital as it is to seek out the multiple car loan options within Canberra, it’s also essential to know how to compare those loans. Before going out to shake hands on a deal, you ought to know what to look out for when evaluating the right values. Such as:
Examine the interest rates: You can’t efficiently compare vehicle advances without considering their interest rates. Interest is the amount you pay to your lender for giving you the funds to purchase your vehicle, and it’s different from the principal amount but part of the total bill. Finding out the rate per annum on every loan you consider is essential to figuring out how much you need to pay on each instalment. It’s easier to estimate when you go with a fixed rate because the percentage remains the same all through the loan term.
Compare the continuous charges: Interest isn’t the only amount you pay to your lender in addition to your principal. There are other fees to contemplate, like the application which the lender requires to consider your request. There’s also a one-time establishment fee that most financiers collect to sort out the terms of your agreement. The comparison rate is an effective way to combine both the regular interest rate and extra charges to determine your loan’s actual cost. Still, you should note that it doesn’t include circumstantial fees like early or additional repayment charges. Be mindful that you may even need to weigh those charges before coming to a final decision.
Consider the type of loan: Canberran financiers offer various kinds of loans to borrowers. If you’ve gotten a loan before, you’re probably familiar with the distinction between the secured loans and unsecured ones. The latter carries more risk because the lender cannot legally repossess the vehicle if you fail to pay up within the agreed time frame, so the rates are often higher.
Will I be asked for anything?
Yes, especially if it’s your first time taking out a loan or you’re applying to a new creditor. Even your old financier will still require a couple of documents for records purposes. When it comes to financing, hardly anything gets done at face value. So it would be best if you went in prepared with the following:
ID Papers: Financiers need to know who they’re dealing with, so you must bring along a valid means of identification. Most companies will specify the type of ID they prefer, but a driver’s license, international passports, and your health med card are usually acceptable. You’re more than likely to have to fill a form that gives more details about how old you are (you can’t get a car loan if you’re less than 18 in Canberra), how many dependents you have, and so on.
Earnings and credit rating: You increase your chances of approval for a vehicle advance if you have a steady stream of income. It shows lenders that you have a way to make your monthly payments in full and on schedule. If you don’t have a steady source of income, but can prove you have another viable source of income, such as a profitable portfolio revenue or property, then you can get a good deal too. Of course, you’ll need to prove that what you’re saying is true, so the lenders will often need a copy of your bank statement and your most recent payslips.
Details about the car: Lenders need to know the type of vehicle you want to purchase before giving you the go-ahead and transferring the funds to your car dealer. So you’ll need to provide them with detailed information on the kind of car you have in mind. If you apply for a vehicle that doesn’t correctly correlate with your financial stance, you risk rejection.
To wrap it all off, remember that you have plenty of options in Canberra, so you don’t have to settle for a bad deal. It’s also good practice to read the terms of any arrangement very carefully. If you’ll be using the car for business purposes, you may wish to consider a chattel mortgage. Unsure of the difference? Read our blog post ‘consumer car loan vs chattel mortgage’.
Written by Jacaranda Team