So, you’ve decided to buy a new car. Whether it’s a practical run-around for school drop-offs and quick trips to the mall, or a powerhouse SUV for those weekend adventures with your mates, you will need to raise the necessary money. Luckily, if you don’t have enough cash on hand, or don’t want to part with any on your next car, there are various finance options available; let’s look at the car finance solution.
What is a car loan?
A car loan allows you to borrow money to purchase a vehicle from a financial institution or authorised lender. This lets you take possession of the car now, but pay it off in monthly, fortnightly or weekly payments over a fixed period.
How much can I apply for?
This depends on your income. The lender will require proof of income and will work out what you qualify for. Each case will be looked at individually according to the lender’s criteria and your personal financial circumstances.
Work out what you think you can afford, using this car loan repayment calculator, and then speak to Yes Loans.
What do you need to get a loan for a car?
It’s always good to get a head start with the paperwork required:
1. Recent payslips
We require you to produce proof of income. Print out a couple of pay slips or email the digital copies to your broker.
2. Your financial situation
You may need to produce three months of bank statements to provide the lender with the peace of mind that you can comfortably pay off your car loan.
3. Personal ID
You will need to prove that you are who you say you are.
4. You will need photographic id
A passport or driver’s license will be suitable.
5. In addition to this, you will need a Medicare card or a Credit or Bankcard. If you don’t have one of these officially recognised means of identification you may need to get your birth certificate.
6. Car insurance
If you are taking a secured car loan, whereby the lender uses your car or other assets as collateral against your loan, you will need to be in possession of a current car insurance.
What’s the difference between car finance and a personal loan?
There isn’t much difference between the two. A personal loan allows you to borrow a specific amount for your personal use like renovations, a holiday or a boat, whereas a car loan only allows you to purchase a car.
Car finance approval process
1. Speak to Yes Loans or simply complete an online application.
2. Fill in the form as accurately as possible
3. Hand in or email form with all required documentation
4. Lender does verifications and checks
Contact your car loan specialists and take that first step to getting your new wheels.