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What is the minimum and maximum amount I can borrow?
In general the minimum loan is $5,000. The maximum loan amount
depend on your financial situation.
Can I buy other items except cars when applying for a secured
loan?
Yes, cars, trucks, caravans, motorcycles, vans, boats, machinery,
tractors, equipment, office equipment, business furniture
and more.
How long does it take to approve my loan?
Some brokers can give you an informal approval in jest a
few minutes. However, to obtain a formal approval the broker
or the bank must see all relevant documents before they can
guarantee your loan. This make take a few days, depending
how quickly you can supply relevant documentation.
When my loan is approved, can I get cash and pay for the car
my self?
Yes, however this type of loan is an unsecured loan and the
interest rates will be higher.
Can I use my loan for personal or business purpose?
Yes, if the item purchased is intended predominantly for
business use, (more than 50%). you can obtain business finance.
This type of finance can be used for hire purchase, chattel
mortgage or lease and it is available to companies and individuals,
Can my finance be pre-approved?
Yes, most finance brokers and banks can pre-approve your
loan.
What do I need to provide when applying for a loan?
Before your loan is finalised you may need ono or more of
following documents: payslip or letter from your employer,
bank account details, proof of home ownership or rent receipt,
formal identification , comprehensive insurance policy, drivers
licence If you are self employed or applying for business
finance you may need one or more of following documents: most
recent tax return, payslip or group certificate.
What does the approval of my car lon depend on?
Various factors are taken into account when assessing your
car loan application. For example: your current income, your
current debts, how long have you been employed, o you have
a credit defaults, do you own a home, have you been bankrupt,
etc. The broker or the bank will calculate your ability to
repay the debt by deducting your expenses from your after
tax income.
Can I apply for a car loan if I have a bad credit rating?
Yes you can. However the interest rates will be higher. The
worse financial situation you have the higher the interest
rate.
Can I buy a car from an individual as well as from a dealer?
Yes, you can also refinance your own car.
Can I make extra payments on my loan?
Yes, most of the lenders will allow this, however some lenders
may impose an early repayment fee.
What type of fees are there when applying for a loan?
Secured and unsecured personal loans may have loan establishment
fee, monthly account keeping fee. Loans for business purposes
may incur government taxes, stamp duty, REVS and GST. The
fees vary according to your place of residence. If your application
is not approved you should not pay any fees.
Help and tips when buying cars
Contact a broker or a bank and pre-approve your car loan.
Knowing exactly how much you can afford will save you time
when searching for a car. Also, you will be able to act
quickly and negotiate when you find the car you want to
buy. Also ask your finance broker to arrange insurance for
you prior to taking delivery of the car. If you are buying
privately your broker can help you verifying the ownership
of the car you are buying. and arrange car insurance as
well.
Shop around before purchasing your car.
Search on the Internet, visit car yards and compare cars
and their odometer readings and general condition if you
are buying an used car. New car prices may vary as well
from dealer to dealer.
Check car service history.
Ask for car service book and compare odometer reading with
service or repair
receipts. If not sure, contact the garage where the car
was serviced.
Warranty.
If you are buying a second hand car from a dealer it is
a good idea to arrange a second hand car warranty. This
will help you if any unexpected repairs are needed.Your
finance broker often can arrange a warranty cover for your
car.
Getting help with professional Inspection.
If you don't know much about cars it is a good idea to
have the car checked by a professional. In this way you
will obtain pre-purchase inspection and report on the condition
of the car. The report will contain an estimate of the cost
for any repairs needed. This report may help you in negotiating
the price down.
Transfer of registration
To enable transfer of registration, you’ll need a valid
inspection report/certificate. These are obtained from Approved
Inspection Stations. Each state has slightly different rules.
If you are buying your car from a dealer he should supply
you with a valid report at the time of purchase of the vehicle.
These reports are only valid for a limited time.
Is the car you are buying under finance already?
When buying a second-hand car privately that has money
owing on it, you could end up with the car being repossessed.
If your car is repossessed you won't get your money back.
So, make sure there is no existing finance on the car you
are buying.
You can visit websites below to help you in establishing
the ownership of the vehicle. .
NSW / NT: http://www.revs.nsw.gov.au/about/revscars.htm
QLD: http://www.transport.qld.gov.au
VIC: http://www.vicroads.vic.gov.au
SA: www.transport.sa.gov.au/registrations/motor_vehicles/vehicle_securities_registar.asp
WA: https://bizline.docep.wa.gov.au/revs
TAS: http://www.transport.tas.gov.au/registration_information
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