Buying Finance Investing

Buying A New Car On Finance

August 19, 2020

Are you currently in search of purchasing a new car and wondering what option is right for you?

At Funding Force we can help you in all aspects of finance and that includes assisting you in purchasing a new set of wheels. There are so many questions involved when it comes to purchasing a new car on finance so we will answer the most frequently asked questions and our tips when it comes to purchasing a new car on finance.

What is your budget?

When it comes to deciding on buying a new car under finance there are many things you should consider before you do so. A simple tool begin is creating a list of all your incoming and outgoing expenses and see what you have left over. The reason this is important is because you don’t want to overstretch yourself and won’t be able to afford the repayments.

Being realistic in your expectations when buying a new car should be your priority. Buying a car that is $25,000 that you can comfortably afford over purchasing a car that looks good that will cost you $40,000 but won’t be able to afford. Another reason why having a budget is essential is because you also need to factor in the costs of owning a car such as registration renewal, car insurance and running costs just to name a few.

What type of loan should I get?

Deciding on what loan you should get is also an important factor as when getting finance for a vehicle there are a few things you should consider when getting finance and who you should get finance through such as:

Secured Car Loan – A secured loan is using the car as an asset and securing it against the loan. It provides a sense of security to your lender and can also benefit you by paying a lower rate.

Unsecured Car Loan – An unsecured loan is essentially the opposite of a secured loan. It means that there are no assets securing the loan which can pose a threat to lenders which also means you could pay a higher rate.

Redraw Facility / Line of Credit – Using this option is available to homeowners you have gained enough equity in the property and use the redraw facility to fund their new vehicle.

Wants vs Needs

When buying a new car its important to work out what you will be using the vehicle for, what is important to you in a vehicle as opposed to I want the top of the range of everything because it looks better. Standard

Car safety features – If you have children their safety is your biggest priority

Manufacturer Warranty Features – Depending on brand of car that will vary from each of how long the warranty is for. Besides how long the warranty is for another part to consider is what is included in the manufacturer’s warranty.

Size / Storage Capacity – What you will need to ask yourself, what do I NEED in a car that is going to be suitable for what I need to use it for. Asking yourself those questions can essentially save you money when it comes to buying a vehicle because you have established the needs over wants.

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