With the turbulent conditions of our current economy, Australians have felt the pinch as interest rates shift- affecting home loan repayments and other liabilities. Some people may be cautious when it comes to taking out a loan, given the current cost of living, which has been an ongoing crisis for some time. On the contrary, the exact reason why consumers should consider their next financial commitment, is because it could be saving them money. Car loan refinancing is just one of the processes the Lending Specialists at Fox Finance Group are rehearsed in. A refinance process consists of reviewing your current car loan to uncover if there are any more competitive options your profile could be eligible for. Our Lending Specialists compare the best interest rates across a large panel of lenders to ensure only the most competitive options are being presented to you. Not only will you have the ability to discuss tailored options with an experienced finance broker, the assessment process is obligation free.
A previous study conducted by Finder, found that approximately 2.7 million people had car loans in 2021 alone. That’s a relatively big portion of our population opting to break down the cost of their vehicle purchase by utilising finance. With the rising cost of living after The RBA’s announcements this year, taking the time to calculate budgets for repayments has never been more important. Utilising tools such as car loan calculators and educational websites can be a healthy practice before approaching a finance specialist for your money saving options moving forward. In some instances, the lowest interest rate may not necessarily be the most effective option for someone who is looking to improve cash flow. For example, if a car loan total is $20,000 including fees, over a 3 year term at a 9.98% interest rate, weekly repayments will be approximately $150 per week. For a car loan that is $20,000 including fees with an interest rate of 12.23% over 5 years, the weekly repayments will approximately be $102. Putting an additional $48 back into your pocket over a year equates to $2496. Whilst the loan term is longer and the interest rate is higher, the latter does allow for better cash flow day-in-day-out. Putting strategies in place to ensure your savings are in the best shape possible can allow for savvier finance opportunities in the future, such as a home loan.
People obtain car loans for all different types of reasons. Some may be looking to upgrade a reliable family vehicle, some may be looking to purchase a business car in the name of a company, and others may be looking to add to their classic car collection. Different types of loan products suit different needs, and there may be a loan product you have not considered before delving into the finance process. Both secured and unsecured personal loans can be taken out to purchase a vehicle, which can sometimes work better for a customer if they prefer to shop around after obtaining pre-approval. For business owners, low-doc car loans provide flexible finance options without needing as much income verification throughout the process.
Before seeing the year out, it’s a good idea to learn what status your credit file is in. For those who aren’t aware of what their credit score is and how it can affect a loan approval, we have information that can help provide insights into what your credit score means to you. While it is true that most car loan lenders take a credit score into consideration when assessing a file for loan approval, not all lenders will base their judgement solely on it. Knowing what shape your credit file is in will give you a clearer insight as to what you can expect for your next car loan or refinance. the Lending Specialists at Fox Finance Group provide a free copy of your credit file as part of their service, so you’ll be up to date with exactly what’s on your file!
Several different factors come into play when it comes to pre-planning your financial future. Take the stress out of your next loan and speak to us on (07)3505 3099, or have us call you!
Rowdie has been a part of our Team since 2020. He has witnessed firsthand the ongoing evolution of the finance industry as technology continues to change the way customers' access financial services. He has a passion for helping people and relishes the opportunity to work alongside our teams every day as they help our customers financial dreams come true.