Imagine you’re in the car dealer’s showroom. There’s a lot on your mind as you try to make a final decision on your big purchase. At this point, the salesman offers to make things easier by arranging finance for you. What do you do?
Continue reading “Car Dealerships why they are a waste of time for Finance.”
A NEW car bought with a zero per cent interest rate can be dearer than the exact same vehicle purchased at a discounted price with a regular finance rate. Our Finance Experts compare the true costs of New 0% Car Finance Offers and Regular Car Finance.
Last month the Nissan Pulsar was available with 0 per cent finance but the deal was linked to a $24,990 drive away price.
The same car was previously available for $19,990 drive-away. With a regular interest rate of 8 per cent, the total repayments are in fact lower than the 0 per cent deal.
According to figures calculated using the ratecity.com.au website, a car loan for $19,990 paid back at 8 per cent interest over three years amounts to repayments of $624 per month and a total cost of $22,449, not including any establishment fees or extra charges.
But $24,990 paid back at 0 per cent interest over three years amounts to repayments of $694 per month, an extra $2541 over the life of the loan, according to the online calculator.
Important advice … Nissan Pulsar or not, always found out what you owe in total. Picture: Supplied Source: Supplied
Finance experts say car buyers should always find out the total repayment figure on low interest rate offers, and then compare that with an outside finance offer on the price of a discounted car.
“Many car companies use low finance offers to get customers into showrooms, but in most cases the deals are tied to the full price of the car and full dealer delivery charges,” said a veteran car dealership finance expert speaking on condition of anonymity.
“That’s the only way car companies can afford to offer the low interest rates. They get their money eventually. You don’t get nothing for nothing.”
Adding to the confusion for car buyers, some low interest rate deals are better than others.
When the low interest rate is combined with a low drive-away price, the customer is well in front, savings thousands on the repayments of a new car over the life of the loan.
For example, this month Ford has a low drive-away price on three slow-selling vehicles in its SUV range combined with a low 1.9 per cent finance offer.
Car finance .. deals are being offered around the Ford Kuga. Picture: Supplied Source: Supplied
The Ford Kuga mid-size SUV, for example, has been discounted to $29,990 drive-away in recent months, about $3500 off its full price.
But the company is now also offering a 1.9 per cent interest rate over three years to sweeten the deal, a saving of about $3000 over the life of the loan at 8 per cent interest.
Last year the Toyota Camry was also available with a “double whammy” deal, combining a 1 per cent interest rate with a discounted drive-away price of $28,990, at the time about $7000 off full price.
Interest rate offers are likely to become the new battleground in car dealerships.
The car industry is expected to use finance offers to mask price rises in the coming months if the Aussie dollar continues to fall.
“The finance rate offer is a way to say to customers ‘this is how much the repayments are’ rather than having them focus on the actual price, especially if it goes up,” the dealer representative said.
How to drive a bargain
1) Ask how much the total repayments are over the life of the loan, regardless of the interest rate.
2) Always compare the low interest rate offer with what’s available outside the dealership. Talking with a Car Loan Expert like Carloanapproved.com.au will extend your options rather than one dealer finance product and usually on a better interest rate.
3) Ask if the low finance rate is attached to the price of the car, or is the price of the car negotiable as well.
4) Many low interest rate offers are only available over three years, and the monthly repayments may be higher than a regular interest rate over a longer term loan.
You’ve used all the online tools the car selling websites have to offer, and finally decided on the new car for you. You’ve picked the colour, carefully chosen the equipment grade and you even have an idea of the options you’ll tick.
How are you going to pay for it? Are you better off paying cash or taking out a loan? And, if you’ve chosen the latter route, what are the choices when it comes to car finance?
MotorNews.com.au affiliate Carloanapproved.com.au is one of the country’s top sources of automotive finance. Sure, they’d like to sell you finance (there’s even a link at the bottom of this page) but, they’re also an excellent source of information in a field that can offer traps for young player.
Here’s the Car Loans Experts advice…
Continue reading “The Best Way to Buy a New or Used Car”
So you’ve found the car of your dreams at a car dealership that also offers finance at an incredibly low rate … it’s tempting, but how do you know if this is your best finance option?
It’s not your only option to finance the purchase of a new car.
Continue reading “Top tips to avoid being ripped off by low interest car finance dealership offers”
An extended warranty is a valuable asset for your used vehicle; it is a great way to protect your investment, a cost effective way to ensure that you will be able to have repairs done in a timely fashion and one of the most sensible ways to save money on automotive costs. However, if you are not sure what to look for, you may not get the dependable coverage you need.
Continue reading “What To Look For In Extended Warranty On Used Vehicles?”
Microsoft Corp. has agreed to invest about $100 million in Uber Technologies Inc. at a valuation of approximately $50 billion, a person with knowledge of the matter said.
The deal was finalized earlier on Friday, said the person, who asked not to be identified discussing a private deal.
Continue reading “Microsoft Said to Invest About $100 Million in Startup Uber”
Carloanapproved.com.au offer pre-approved loans for cars and will evaluate your financial circumstances and provide the information on how much money you are able to borrow, what your repayment amounts are worth and the amount of interest that you would have to pay on the loan.
The pre-approved loans generally come with no obligation and you can always get in touch with your lender if you need a conditional renewal for an additional 30 days.
Continue reading “The Benefits and Feature’s of Carloanapproved.com.au Car Loans Online”
The Federal Government delivered its 2015 budget on May 12 and announced a number of changes to legislation that will have an impact on you as an individual or a small business owner.
The item that has been receiving the most media attention is the ‘Immediate Tax Deduction for the purchase of business assets that cost less than $20,000’ scheme.
Effective immediately, and with a proposed end date of 30 June 2017, small business entities (businesses with a turnover of less than $2 million) will be able to claim an immediate tax deduction for the purchase of most assets that cost less than $20,000. The $20,000 threshold replaces the existing $1,000 threshold.
Here is what you need to know about the ‘Instant deductibility for assets less than $20,000’ scheme.
Continue reading “How your Business can Benifit from the $20,000 Federal Small Business Tax Grant”
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