What to Do When Getting a Suncorp Car Loan
To most people, getting a car loan for the first time is a huge decision. It’s a major financial decision and getting it right is quite important. Unfortunately, not a lot of people have enough funds saved up to just walk to a dealership, make the purchase in cash and drive away with the car they want. Most people would need some financing option that will allow them to pay off the purchase over a set period of time. In this case, a suncorp car loan is one solution.
When taking out suncorp car loans, one of the most important decisions you have to make is deciding on a budget. You need to know ahead of time how much you can afford in relation to how much you are likely going to be approved for, considering your present credit standing. Lenders will take your borrowing history and financial standing into account when deciding whether or not to approve your loan and how much they should approve you for. It helps to have a clear picture of what you can conveniently afford to repay. It helps too if you can make a bigger deposit as this will significantly reduce the amount you need to borrow. Since loan costs are influenced by the loan amount, expect lower interest when you borrow less. It is easier to get approved for a loan too when lenders can see that you can easily afford what you are borrowing
Understanding car loans
Getting a car loan involves you borrowing money from a financier. This could be a credit union, bank or even a dealership. The sole purpose of the loan is to fund the car purchase that you’re about to make. In this setup, you first work out how much money you need to borrow to buy the car you want. Then you pay the amount back over an agreed period of time, with interest involved.
Car loan terms
Different lenders tend to set different borrowing conditions and it’s important that you shop around before you decide which provider to go for. Just like any type of loan, a car loan will need to be paid off within a specific period. Loan terms vary per lender but this could range from 1-7 years. There is an interest that will be charged on top of the original amount you borrowed. How much you’ll be charged as far as interest rates go will usually depend on your financial state, your repayment capacity, the amount you are borrowing and how long you would prefer to pay the amount back.
Secured or unsecured?
Another important decision you need to make when availing of a car loan is whether to go the secured or the unsecured route.
Secured car loan
In a secured car loan, you use the vehicle as a security for the money you are borrowing. This offers an advantage of getting a lower interest rate when compared to what you’d get if you go the unsecured route. The reason for this is that in the event that you fail to pay back what you owe, the lender will be able to sell your security— in this case, your car— to recoup their losses.
Unsecured car loan
This type of car loan doesn’t involve any security which the lender can hold on to. This means that the financier will have to take more risks especially in the event that you won’t be able to pay back what you have borrowed. As a result, expect the interest rates to be significantly higher than what you’d usually get for a secured borrowing.
There are certain conditions you are expected to fulfill, however, if you are to qualify for a secured car loan. Among these are:
Cars will need to be below a specific age;
Vehicles will require to below a certain mileage;
Certain cars may not be accepted.
Do I qualify for a car loan?
Different lenders set different requirements when it comes to customers that can apply for their car loan offers. Checking out their websites for their specific eligibility requirements is always essential. In most cases, lenders will expect their potential borrowers to meet the following criteria:
Legal borrowing age;
Australian citizen or holds permanent residency;
Is employed or has a regular income source;
Has established a good credit history;
Has no pending, present or past claims or judgments.
Always know ahead of time how much you can afford as far as repayments go before applying for a loan. Just because you are qualified to borrow a much higher amount than what you really need for your car doesn’t mean you should. Always consider your repayment capacity before you decide. Remember that the repayments will be added to your monthly expenses. So, stick to what you can really afford.
The last thing you want is to head to a dealership without having any idea what kind of vehicle you want. With all the rows of choices available out there, you’re only likely to end up getting confused and overwhelmed. Take the time to research vehicles that are within the range of the loan amount you intend to borrow. Narrow them down a bit further to include your practical and aesthetic preferences too.
Expenses related to a vehicle purchase don’t stop after you drive it from the dealership. In fact, it has only just started. This is why it’s always smart to include the maintenance fuel and other ongoing costs of a vehicle in deciding which car is right for you. Check the vehicle’s website to find out what the warranty details and fuel economy information are. You can also research online and check review sites for information on potential maintenance issues and running costs.
Always make the most of the opportunity to bring the price of your vehicle down as best as you can. Some people feel a bit embarrassed at the idea of negotiating a price, but it is actually a great way to get a better deal. Most dealerships would be willing to lower the numbers down, which is why never sign anything until you have done your part at haggling. Never be ashamed to negotiate as every car salesperson will be more than happy to find a common ground. This is what they do every day and if this will give you a chance for a better price deal, it’s definitely worth a shot.