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Car Loans Compare
March 9, 2020● 9 minute read●
Written by - Jacaranda Team
How to find the best car loans for you
If you’ve been searching for “car loans compare” on Google, you are in the right spot! We are Jacaranda Finance and we can offer you a car loan that suits your financial situation and personal budget. But before you head over to our application, you may want to know why we may be the best lenders for the job. Let us tell you!
What is a car loan and why should you get one?
A car loan is a type of personal loan that is specifically used to buy a car. It doesn’t matter if you are after a brand new car or looking into used options, a car loan can provide you with the necessary cash to invest in the car you want. In an ideal world, you would have enough money in your bank account to buy that car straight away, but life doesn’t always go to plan and sometimes you don’t have the time to wait until cash accumulates. In most places, a car is inevitable for your mobility. That’s why a car loan can give you access to the finances you need. However, you should look into options and how car loans compare before you commit to a certain lender.
The Jacaranda way of lending
Let us introduce ourselves! We are Jacaranda Finance and we may be your online lender of choice! We make personal loans and car loans accessible to the everyday Aussie! While we believe everyone should have fair access to personal finance, we also want to make sure you can afford the loan you are getting. We believe in responsible lending and, therefore, assess your financial situation thoroughly to offer you the best suitable option for your financial situation. We won’t lend you money if we think you may struggle to repay it. Jacaranda stands for transparency! It’s important to us that you know what you sign up for. All our costs and fees are clearly stated in your loan contract and can be found on our costs page. This makes it easy for you to see how our car loans compare to other lenders.
How do car loans compare?
There are multiple things to look out for if you want to know how car loans compare. Every lender is slightly different in what they offer, so it’s important that you read their small print thoroughly. You can find plenty of websites online that directly show how car loans compare.
Of course, your choice may depend on how much money you may be able to borrow. You should vaguely know what car you are considering to decide which lender can provide you with the right loan amount. We recommend only borrowing the amount you need for the car and nothing more.
Your interest rate depends on your credit rating. The better your credit rating, the better the interest rate that lenders may be able to offer you. However, even if you have a bad score, lenders may be able to give you a loan. They may see you as a higher risk though which will be reflected in your interest rate. If you want to know more about our interest rates, head over to our costs page.
Not every lender will offer the same loan terms. The longer you borrow money for the less you will have to pay from week to week or month to month. However, shorter payment terms and higher individual payments can save you money in interest as you won’t take as long to repay. A car finance calculator can help you work out which car loan terms suit your financial situation best.
It’s really important that you have a thorough look at the small print. Most lenders add their own conditions and it’s important to know if they add charge fees for the early payoff (we don’t!) and what happens if you miss a payment. If you are having trouble finding this information easily, you should maybe consider a different lender with more transparency.
What car loans does Jacaranda offer?
No matter if you are after a small city car or a big SUV – we’ve got you covered. We can offer car loans from $5,000 to $35,000 and an easy online application. Most people finish their application in a few minutes and receive their outcome within the next 60-minutes (if they apply during our business hours). Our repayment terms range between 1 and 5 years.
What are the requirements?
Don’t worry, we offer car loans for people on Centrelink, car loans for people with bad credit history, and car loans for pensioners. You only have to meet a few requirements to be able to apply with Jacaranda. To find out if you are eligible for a car loan, you can answer a few simple questions. If you find yourself answering all of them with a “yes”, you are our candidate!
- Are you 18 years or older?
- Do you have a driver’s license?
- Are you using an online banking account with at least 3 months of income history?
- Can you provide an email address and a mobile number?
That’s all we are asking for. If you have any further questions about eligibility, please get in touch with our customer service team.
How to apply for a car loan?
Our application process is quick and easy. Most people submit their application after a few minutes. However, if you feel stuck at any point, our friendly customer service is more than happy to troubleshoot. If you want to speed up the process, make sure that you have your personal details and the login for your online banking handy.
Step one: Fill in the online application.
Our online application won’t take much time. You can submit it from the comfort of your own home or on the go, whatever suits your lifestyle best.
Step two: Wait for the outcome.
Now you can sit back and relax while we do the hard work. Our experienced team will now assess your online application thoroughly. We look at it from all sides to ensure you get the best offer we can make. Although we will conduct a credit check, it’s not the only factor we look at when assessing your loan application. We care mostly about your current financial situation and your relationship with money. That sounds like a long process but fortunately, it’s not! Most people receive their outcome within 60-minutes if they apply during our business hours.
Step three: Get your cash.
If we can offer you a loan, awesome! We will send you your personal loan contract to sign. Once you are happy with the offer and we have received it back, we will transfer your funds to the nominated bank account. There may be only a few hours between you and your new car!
Can I apply if I am on Centrelink?
Yes, you can. If you meet the other requirements, you are very welcome to apply. We recommend you have a look at how car loans compare and what’s the best option for you first though. It may be difficult to get a car loan with certain lenders as they won’t accept Centrelink as a source of income. At Jacaranda, we think everyone deserves a fair go. There is a personal story behind every single application we receive and we want to enable as many people as possible to be mobile and get the cars they need.
Will you perform a credit check?
In short, yes, we will! However, we know a credit rating is just a number and may not represent your current relationship with money. That’s why we also look at other aspects of your financial life to ensure that we capture the full picture. So don’t worry if you have a bad credit rating.
Does getting a car loan affect my credit rating?
First of all, the interest rate we can offer you depends on your current credit rating. We do offer loans for people with bad credit, however, these loans often come with a higher interest rate. But getting a loan will also have an effect on your interest rate in the future. Right after getting a loan, your interest rate may drop first. Give it a few payment cycles to recover and it may even improve from there. Repaying your loan on time can add as a positive factor and may even improve a damaged credit rating (if you don’t miss out on other payments).
How do you handle missed payments?
As we said, it’s important to know what happens in case of a worst-case scenario. We know no one misses a payment on purpose and sometimes a change of circumstances can leave you in a tough financial situation. If you experience financial hardship and you know you will miss the next payment, please get in touch as early as possible. We may be able to find a solution that works for both sides. Otherwise, we may charge an additional fee for the missed payment as stated in the car loan contract.
How can I talk to your customer service team?
There are multiple ways to get in touch with us. If you have any additional questions, we would recommend you check out our FAQ section first. Some others may have had a similar question already. Otherwise, you can send us a message at any time or give us a call during our business hours.
Our business hours are:
Monday to Thursday: 8 am – 6 pm
Friday: 8 am – 4 pm
Saturday: 8 am-12 pm
Some advice on car loans
Taking on debt to afford a car is a big personal decision. A car is the biggest financial decision most Australians make in their life apart from buying a house. We recommend you think about how much money you can afford to repay comfortably over an extended period of time. Financial advisors recommend you shouldn’t pay more than 10% of your take-home income on car loan repayments. Owning a car comes with additional responsibility. While you may have a car parking spot already attached to your property you will also have to pay for registration and insurance. Most cars come with maintenance cost over the course of their life and you should be prepared to pay for any potential damage or get additional insurance to cover for that.
We know it’s a lot to remember! That’s why we’ve summarised the main points about or car loans in the table below:
|Loans||Between $5,000 and $35,000 depending on the car you are wanting to buy.|
|Term||Between 1 and 5 years depending on how much you would like to repay at a time and how regularly you would like to make the repayments.|
|Eligibility ||You must be 18-years or older; be an Australian citizen or a permanent resident; have a valid driver’s license; be receiving a regular work income into a personal bank account for the last three months;|
|Documentation||You must provide us with some personal details (such as your name, date of birth, address etc), and contact details (such as your email address and mobile number).|
Ready to apply?
We hope you’re well equipped to look and apply for car loans now. If you would like to play around with repayment rates and loan terms, our car loan calculator can help you work out what works best for you and your budget. If you have any further questions, please get in touch. Otherwise, we can’t wait to get to know you!
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Written by Jacaranda Team