At the end of an Aussie road you’ll find endless beaches, vast deserts and breathtaking world heritage sites, so it’s no surprise that Australians love their cars. ABS statistics show over 90,000 new cars are sold in Australia every month and when you add in all those pre-loved models it’s enough to make your head spin. Finding the right car can be a considerable challenge and there are many factors to consider including budget, safety, purpose and of course if it’s a second hand car, what condition it is in – nobody wants to buy a lemon.
After a house, buying a car is the second largest investment we make, and most people don’t have the funds for a new car sitting in their bank account.
RAA Finance offer personal loans for everything from boats to holidays and home renovations, but car purchases are their most popular type of personal loan. Everybody’s circumstances and requirements are different so RAA Finance urge car buyers to take some time to look at their finance options – paying for the vehicle is just as important as picking the right model and colour.
Here are RAA Finance’s tips for making the most of your car loan:
- Timing – When you purchase can make a big difference to how much you pay. Look for model run out sales and you’ll often find deals towards the end of calendar and financial year. Car yards often have monthly targets so they might be more likely to do a deal on the 30th of the month. It’s also important to get your finance organised as soon as possible – you don’t want to make a hasty financing decision because of pressure to ‘buy now or miss out’.
- Read the fine print – It is your responsibility to make sure you have a full understanding of the loan features like interest rates and terms, repayment options and any additional fees. If you have any doubts or questions ask your lender to explain – our RAA Finance consultants are fully trained to answer all your questions.
- Depreciation -The value of your car is going to reduce over time – possibly starting as soon as you drive it out of the showroom. So don’t overextend yourself. RAA Finance works with our customers to determine the right loan for you.
- Insurance – Make sure you have comprehensive car insurance so you are fully covered if you have a crash. Compulsory third party insurance (CTP) protects you against claims for injury or death but it won’t cover the cost of repairs or replacement if the worst happens.
RAA Finance’s personal loans are packed full of features including quick approvals and a fair market rate. Members also save 1% per annum off the standard interest rate plus $100 off the establishment fee. Go to raa.com.au/finance for more information.
If you are buying a second hand car it’s worth considering an RAA Vehicle Inspection. You’ll get peace of mind knowing an independent and impartial expert has assessed the vehicle, especially given potential issues can be difficult for the untrained eye to spot.
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