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Compare Car Loans Perth
January 6, 2021●
5 minute read●
Perth, Western Australia, is a beautiful city and getting around the city area is relatively easy because of the ease of public transportation. But having a car of your own is a definite plus, like if you want to visit the Margaret River and get around town faster. So whether you’re a resident making your way to work daily, or a tourist looking to rent a car for a couple of days of sightseeing, we’ve compiled the best car loans Perth has to offer. We’ll also run you through the process of getting a car loan, so your application is as smooth and painless as possible.
How do I get a car loan in Perth?
Getting a car loan in Perth is quite similar to getting one in virtually any other city in Australia. However, there are a few things you should be aware of that can boost your chances of achieving approval. Great news, as a populated city the lending space is full of different lenders you can get a loan from because the supply is so readily available, it means the interest rates are lower. In addition to that, moneylenders also have a relatively fast response time, so getting a vehicle advance won’t be a long and stressful process in Perth.
You can apply from online from one of the many companies that specialize in giving out car loans. If you’re more interested in a motorcycle, caravan or any other two or four-wheeler that moves on the road, then it’s about the same process. You can use an online comparison tool to find appealing deals, and then visit the site for more details.
Will I be asked for anything?
Yes, there are several documents you will have to provide to show that you are a trustworthy person the lender can bank on. Loan companies in Perth often ask for:
Identification papers: First and foremost, you’ll need a valid means of identification, such as your driver’s license or passport. The legal age to get approval for a car loan across the country is eighteen years, but in reality, you’ll find it more challenging to get one if you’re under twenty-five in Perth. If you’re a tourist from another country, you might also find it more challenging to get a loan, but it doesn’t hurt to inquire about their policy for non-residents. You stand a better chance of getting approval if your visa is for an extended stay, and allows you to work and earn a steady income.
Proof of income: Lenders want to be sure that you can make your weekly or monthly payments, so it’s the norm for them to request some evidence that you do earn a regular paycheck. Your last few payslips are acceptable to have on hand, but sometimes they ask you also present a bank statement that shows your total incoming and ongoing activities.
Assets and liabilities: If you’re a freelancer or house-spouse it might be harder for you to prove that you have a means of regular income, so to supplement you can provide a record of any other asset you have. So if you have an excellent investments portfolio, a savings account or another form of passive earnings, it could boost your score. But you’ll also have to provide a similar list of your liabilities like mortgages, and other loans as well.
Credit history: You should prepare for a credit check. Your credit file gives moneylenders a good idea of your financial habits. If you pay your bills on time, it can boost your score and trustworthiness, but declaring bankruptcy and missing payments can hurt your score. Before applying, you should try to increase your rating if you can.
Information on the vehicle: Lenders like to know the value of the car you’re getting and how much it’ll cost them to cover it for you. So don’t be surprised when they ask for details about the vehicles. Prepare to answer questions about the make, the year and so on. Sometimes they reject some people’s loans because their finances aren’t sufficient to cover the car they want. To avoid making that mistake yourself, it’s a good idea to get a pre-approved loan, because it gives you more information on what your current financial state can support. It also increases your chances of getting a car loan.
How do I compare Perth car loans?
Interest rates: Considering interest rates is vital to make the best decision. Car loans either use a fixed rate or variable rate policy. In a fixed rate, the interest rate remains the same throughout the loan, but with a variable one, it is subject to change over the duration. The comparison rate is a more accurate way to gauge the actual cost of a loan because it takes the advertised interest rate, upfront fees, and ongoing charges into account.
Security: You can opt for either a secured loan or an unsecured one. The difference between the two is that the secured loan has some form of protection attached to it, which the lender can repossess if you fail to pay, while the unsecured loan does not. Since the latter is a higher risk, the rates are higher. Sometimes the lender will want you to get insurance coverage on the car in the case of damage; this is a good idea in Perth because the drivers are notorious for being rough.
The type of loan: In Perth, like other parts of Australia, financers provide options to the borrowers to choose, each with their specifications. Most loans are the secured type, which means if the borrower defaults on their repayment, even once, the lender can repossess the vehicle and sell it off. If the initial terms of your loan include another collateral, they can legally seize that as well. In contrast, with the unsecured car loans, lenders aren’t allowed by law to repossess any of your property, even when you fail to make your repayments on time. It might sound like a sweet deal, but it often comes at a higher rate.
So there you have it, an overview on how to compare car loans in Perth. Plus some of the best rates on the market. As a final note, remember to go through the terms of your agreement carefully before signing.
Written by Jacaranda Team