The Gold Coast is Australia’s vacation capital, with a tremendous choice of attractions on offer: idyllic beaches, prime shopping opportunities, world-class restaurants and a full calendar of events to look forward to. Located in the state of Queensland and stretching over 66 kilometres, it makes sense that the best way to get around and to make the most of the coastal city’s offerings, is by car.
For holidaymakers, this means car rental; for residents, it means purchasing vehicles of their own. To own a car, you need to finance it. Successfully obtain a new car loan on the Gold Coast by first following these preparatory steps.
Organise Finances To Determine Affordability
While it seems tempting to buy first and then worry about finances at a later stage, car expenditures, including financing and all associated operating costs, are the second-largest expense for any household after mortgage payments. To avoid considerable financial stress, you should first organise your finances and determine your affordability before shopping for a new vehicle.
Calculating your budget begins with determining how much money you can afford to spend on a vehicle. To calculate what disposable income you have access to, subtract all of your expenses from your overall income (after deductions). This is the money that may be used for indulgences, savings or credit, such as monthly instalments on loan payments.At the very most, car payments should not take more than 30% of your annual income – although ideally, this figure should be closer to 15%.
Clean Up Credit Score
With any loan ‒ such as student loans, home loans or car loans ‒ your credit score is the single most important element in deciding everything from your interest rate, loan amount, monthly payment rates and even whether you qualify for a loan at all.
If you have a bad credit history, not all lenders will approve you for a car loan. Others may agree to lend you money but at a higher interest rate. Make a habit of familiarising yourself with your credit rating, consolidating bad credit and reviewing your reports for mistakes, duplications or just outdated accounts to improve your credit score.
Get Credit Insurance
Credit insurance is an optional policy that pays your vehicle loan to your lender in certain circumstances, for example, if you lose your job or become incapacitated. You may find that you will need insurance to qualify for a loan and take ownership of a car. When financing a car, full coverage is usually necessary.
Consider the cost of credit insurance before making a decision. If you add credit insurance to your loan, your loan amount will increase and you will pay more interest.
Save Money For A Deposit
Consider a deposit to be the first payment made when financing a vehicle. A deposit is calculated as a percentage of the total purchase price of the vehicle. Lenders frequently require a deposit to demonstrate your willingness and ability to repay the loan.
Aim for no less than a 20% deposit on new vehicles and no less than a 10% deposit on used vehicles. The advantages of making a deposit include reduced monthly repayment rates and less interest paid over the loan’s lifespan.
Contact An Experienced Broker
To apply for a new car loan on the Gold Coast, you may think that you must speak with a finance representative at your local car dealership or obtain a personal loan from your bank or financial institution. However, you may not have considered that brokers can also assist with vehicle financing.
Enter ZEP Finance: an experienced broker that can help you obtain the most competitive rates and terms and conditions to suit your needs. At ZEP Finance, we have access to a large panel of lenders who specialise in vehicle finance. These relationships give us a negotiating advantage that most buyers do not have.
For help in obtaining a new car loan on the Gold Coast, get in touch with ZEP Finance today.