Get A Car Loan Without Getting On Your Knees!

There comes a point in every driver’s life when it’s time to get a car loan for a new or used car, but where do you go to get the best loan rates?

Depending on your financial situation, your credit rating and the amount you want to borrow, there are a number of loan options available. Once upon a time, most people headed straight to their local bank or credit union, but these days various lending institutions have created new opportunities for auto loans that weren’t previously available.

Most auto dealers are in partnership with one or more finance organizations so it’s likely they will offer you their services. But you need to know that most car dealers make a commission on every loan that is brokered through their dealership, so it’s in their best interests to ‘sell’ you both the car and the loan.

The most valuable decision you can make when getting a car loan is to shop around for the best loan, which is now easy to do via the Internet. From the comfort of your computer, you can check out the major banks’ lending rates, the loan rates offered by credit unions and also the choice of rates offered by the many online loan providers.

While it was once true that the major banks used to offer the most competitive loan rates for new and used car loans, that is not necessarily the case these days. Banks tend to have the most stringent lending guidelines; a deposit of up to 25% is often required and your credit rating has to be unblemished. In addition, most banks will only lend funds on new cars or used cars up to a certain age – usually 5 to 7 years.

The factors that apply to bank loans are important considerations when shopping around for the best car loan rate online. In most cases, Internet loan providers will request personal and financial details so they can make an assessment. Based on their analysis, they can choose the best lender for your particular circumstances from a comprehensive range of lending institutions.

The factors they will take into consideration are:

• The deposit you have available
• Your current financial position and your ability to meet repayments
• Your previous credit history
• Your work situation
• The age and condition of the car you want to buy
• Whether the loan will be secured or unsecured
• The repayment amount and the term of the loan

In most cases, online car loan brokers promise to get back to you within 24-48 hours with an answer. This time is necessary to verify your details, confirm your credit rating and determine the best car loan for your needs. No complicated forms to fill out and no need to get down on bended knees to beg!

You can make the process even easier by ensuring you have all the relevant information available. Important points to consider are:

• Do you have proof of steady employment, ie., income statements, recent tax returns?
• Have you checked your credit rating and is it acceptable?
• Have you calculated a reasonable monthly repayment amount? The less you pay per month, the longer the loan period and the more interest you will pay over the term of the loan.

The requirements to get a car loan are easier and more convenient than ever before with the use of the Internet. After all, the web is available to you 24/7 and you can do all the work from the comfort of your own home computer.

What’s more, the popularity of Internet loan providers has created a competitive, thriving industry where you can be sure you will get the best car loan rates available. Just be sure to do your homework first.

Find The Best Used Car Loan Rates Australia Has To Offer

Dealer ads frequently announce “the best used car loan rates available”, but the interest rates differ enormously, so how do you know who is telling the truth?

And it’s not just the auto dealerships who put out billboards offering the best car loan rates in town, finance companies and a variety of other financial institutions go down the same path.

So, short of getting out your financial calculator to work out the maths, how does anyone in the market to buy a used car know if they are getting the ‘real deal’?

While the solution to finding the best used car loan rates in Australia may not require a calculator, it does require some research if you want to reap the benefits.

Many people head to their bank or credit union initially. While the major banks, and more particularly the credit unions, offer very competitive rates for used car loans, their lending guidelines are very stringent, making it virtually impossible for the average guy in the street to meet the qualifications.

So, back to the car dealerships or the local used car lot, where car finance is readily available – generally with a hefty fee for service or interest rates that would leave the proverbial loan shark slack-jawed! But that’s not always the case; the large, prestigious used car dealerships generally work in partnership with one of the large finance companies and occasionally you’ll find used car loan rates that are close-to-competitive.

In many cases, the loan rate offered will depend on how badly the dealership wants to sell you the car and whether the markup on the vehicle you want to purchase is sufficient to make their sales quota for the week. In the majority of cases, the dealership earns a commission on every new used car loan they initiate, so they’re going to get you – one way or another.

Savvy buyers are now going online to find the best used car loan rates available by using one of the quality loan providers/brokers. Online loan providers take all the hard
work out of comparing used car loans and rates between various financial institutions by doing the comparison shopping for you.

In most cases, online used car loan providers work with a variety of lending institutions who offer a number of different loan products. By completing an online form that requests personal and financial details, the loan provider can assess your circumstances and current position and then determine which of the lenders they have agreements with will provide the best match for your individual needs.

Some of the criteria they take into account are:

The deposit you have available

• Your current employment status
• Your ability to repay the loan
• Your previous credit history
• The market value of the car and the amount you want to borrow
• The term over which you would like to repay the loan
• How old the used car is

The most important factors are a stable employment history, a sound credit rating and the ability to repay the loan over a reasonable period of time. Many online loan providers guarantee to get back to you within 24 to 48 hours with an answer. This time is necessary for them to verify and confirm the financial information you have provided.

Because the loan providers have contracts with a number of financial institutions, they can use their network of lenders to obtain the best used car loan for the amount you want to borrow, the required loan term and the monthly repayment schedule.

So if you’ve been pulling your hair out looking for the best loan rates, you can put down your calculator and grab your computer mouse instead and head online. All the work is alreadydone for you, so you can relax in the comfort of your office chair while browsing the Internet and not only find the best used car loans in Australia, but the best used car loan rates as well. Now, isn’t that a pleasant thought?