Get Car Finance
5 Steps to Get a Car Loan
Time for a new set of wheels? We could help you get that new or used car faster. Here are five easy steps you can follow when financing a new car with Yes Loans.
1. Work out a budget
It is very important that you know what is affordable for you. The banks and finance companies have standard living expenses that they apply depending on your details and living arrangements. Once you know how much you can afford to pay weekly, fortnightly or monthly, it will be easier to find a great car within your means.
2. Decide on a loan structure
There are a few loan structures you can choose from, depending on whether the car is for business or personal use. Our most popular loan for personal use is called a “secured loan”. A secured loan means that the bank or finance company uses the car for security until your loan is paid in full. You can generally choose to make weekly, fortnightly or monthly repayments. Learn more about loan structures here.
3. Choose a repayment period
You can choose to repay your car loan over one to seven years. The sooner you pay off your car loan, the lower the interest you will pay. Make sure to ask your loans broker if repayments are flexible so you can pay extra if you like.
4. Get your documents together
When applying for a car loan, you typically need to provide proof of your financial circumstances. This includes your identity, residence, employment, income, expenses, assets and liabilities. See the full list of required supporting documents.
5. Apply for pre-approval
Unless you’ve already settled on your car, it’s a good idea to apply for pre-approval of your car loan before you hit the dealerships, local auctions or classifieds. You’ll need a few documents on hand to complete the approval process. This can be done online or in person. Find out how to apply for pre-approval here.
If you have qualified for pre-approval, you can then go car shopping with confidence know that you have the money available and you will not have to disclose your personal details to the car sales person or the car yard personnel.
If you already have your heart set on a particular vehicle, you might decide to apply for your car loan at the point of purchase. If purchasing from a car dealer, they will run you through the process, check your credit history and send your completed forms to your nominated lender.