At some point, most Australians have to learn how to finance a car. Only 10% of all car buyers are able to purchase a vehicle outright. The other 90% must borrow money. The process can seem intimidating, but it doesn’t have to be. In fact, there are easy ways to find a lender that will work with your credit history and budget.
Tips on How to Finance a Car
Clean Up Your Credit History & Accounts
Take a look at your credit report and bank accounts and look for any potential problem areas. If you can, try to fix these problems before you ask for a loan for a car. Having an account or two in default doesn’t mean you’re disqualified, but lenders will want to see that you have made arrangements to pay off the accounts. The higher you can get your credit score, the better.
Repaying Your Loan
Repayment capacity is one of the things a lender will look at before making a decision on your car loan application. You must have the means to repay the loan to be considered. The Henderson Poverty Index is often used, which takes into account a number of factors including income, marital status, employment history, disposable income, family size, and more. If you are buying a used car, you should expect to pay a little more in interest than those buying a new vehicle.
Finding the Right Financing
- How to Finance a Car with Good Credit
Those who are buying with good credit will typically have more financing options available. The best option in this case would be to go through a car loan broker like our friends at Blink Finance.
- How to Finance a Car with Bad Credit
There are lenders out there who will work with people who have bad credit. The most effective way to begin is to contact a broker who can direct you to lenders who are willing to work with you.
You Should Know How to Finance a Car Now!
So what do you do if you have found a car you love, but need to get the money to buy it? Contact Zoom Car Loans to access a huge network of lenders who work with good and bad credit. Our experts want to help you get financed. We understand that unexpected hardship can put people in a difficult situation. Our staff are available to answer questions and help you connect with a lender that matches your needs. Call us today at 1300 138 273 to learn how to finance a car the easy way or visit our application page to complete an online assessment.