The average car sets you back over $40,000 in Australia, and even a used vehicle might cost $15,000 or more. Most people aren't able to pay this amount of money upfront, so they take out a loan. But how hard is it to get a car finance deal from used car dealers in Brisbane?
Car Finance in Brisbane:
Generally, people who are at least 18, have a fixed address, and have a regular source of income are eligible for an auto loan. However, lenders also take into consideration the individual's credit score. If you have a bad credit history, you might need to pay for a part of your car upfront, and your interest rate will be higher.
Your Age and Location
You have to be 18 to be eligible for a car loan. However, most people can't get a good offer straight after their 18th birthday. Those under 21 often find it harder to get financing for their vehicle because they haven't had time to build up a credit history. If you're a young borrower, take out at least one credit card and use it responsibly. Check your credit score with Equifax, Experian, or a similar company to make sure the information is accurate.
You also need to have a fixed address to be eligible for a loan. If you've moved in the last few months, you might need to provide details of your address history.
Your Income
Lenders want to see that you'll be able to keep up with your monthly payments. The easiest way of proving your financial stability is by providing payslips with a fixed salary.
If you're self-employed, or you derive your income from other sources like a rental unit, you might need to show lenders evidence of regular income for a couple of years. Borrowers usually need to be with the same employer for at least three months before they become eligible for a car loan.
The Deposit
A deposit shows lenders that you are serious about your car purchase and that you have adequate financial resources. If your credit score is low, or you don't have a salaried job, you might still be able to get a loan if you can provide a deposit that is large enough.
When you pay at least 10-20% of your car's value upfront, you don't have to borrow so much money, so it's more likely that your loan application will be accepted.
Why Get an Auto Loan Directly from Used Car Dealers?
Buying a used car is almost always a good idea because it's cheaper, and you don't have to worry about depreciation. If you'd like to finance your purchase, contact a car centre. Most car dealers have excellent financing programs and years of experience helping customers find deals that work for them.
Almost anyone who is over the age of 18, has a fixed address, and has a good monthly income is eligible for a car loan. People who have bad credit often need to provide a larger deposit. The best way to get started is to reach out to a local car centre and ask about the financing programs.