How to Finance Your First Car Purchase
Buying a used car is not often a task which you wake up and decide to do on the day; it requires a fair bit of research and planning. In this blog post, we look at the financial planning side and potential finance advice for purchasing a car. We also discuss the new Industry Motor Group car finance offer.
Know your credit options
As a first-time car buyer, you may little-to-no credit history. This often results in you paying higher rates than those advertised at dealerships. It is advised to take some extra time to build up your credit before shopping for a car.
If your credit is in good shape, one viable option is to apply for car finance online. By comparing rates offered by banks and dealerships, you are more likely to get a better deal. A lot of dealerships also provide you with a car finance calculator, allowing you to view interest rates, repayment options, and more.
Get a short-term car lease
While a longer financing period will seem appealing as your monthly payments with be low, it can cost you hundreds of dollars more in interest. By committing to a long repayment period, you can risk being stuck paying off a car that’s worth less than what you owe on it.
We recommend taking financing of no more than 60 months, and preferably less. This will save you money in the long run.
Make a down payment
Another way to reduce your loan amount (and monthly repayments), is to make an initial deposit at purchase. By putting a down payment, the lender is assuming less risk, which increases the chances of getting financing.
You can also off-set depreciation on the vehicle, especially with used cars. We recommend putting a down payment of at least 20 per cent. While this isn’t exactly necessary, it will certainly help lower your monthly payments and make them easier to manage.
Know your budget
Setting a budget before purchasing a car is important. An expensive new car will come with higher monthly repayments, unless you want to opt for a longer financing period. If you’re in the market for a used car to save money, you’ll also need to make sure you budget for necessary maintenance needs. While used cars are largely in better condition than they were many years ago, a little research into the vehicle and its history will help you plan for repairs and upkeep.
Also, take into account fees such as insurance, servicing, and taxes. These fees will quickly increase your overall car purchase, so budget accordingly.
Quick and easy financing through Industry Motor Group
Here at Industry Motor Group, we offer quick and easy competitive vehicle financing. We know that purchasing your first car may be overwhelming, so we work hard to make your vehicle buying experience as stress-free as possible.
Industry Motor Group is committed to responsible lending, and whatever your current situation, we are here to work with you to ensure you make an informed decision. Helping you find the right vehicle finance package is our priority, ensuring it fits within your budget and our finance providers’ lending requirements. Whether you’re self-employed or working 9-to-5, we understand your circumstances and are here to help.
Industry Motor Group can provide you with:
- A range of interest rates and finance terms
- Repayments to suit your budget
- Full disclosure around how repayments are calculated
- The ability to use your trade as your deposit
- Options if you don't have a deposit or trade. We can evaluate your circumstances and see if there is a solution for you
- Applications that are quick and easy - apply online whenever you want
View our car finance information for more detailed information, or for further assistance on car financing and available vehicles, contact us today.
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