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Different Ways you can Finance a Car in Australia

 

car loans

Do you need a new car to drive yourself to work? Buying a vehicle outright can put a strain on your bank account. That’s why a lot of people apply for a car loan to help them pay for a car. However, for those unfortunate enough to have bad credit, a car loan may be out of range.

That is why you need to know how to finance a car in Australia.

Finance a car in Australia

There are different ways to finance a car in Australia. It’s all a matter of choosing the best one for your current income and lifestyle. Here are some of the ways to finance your next car:

Car finance

There are different types of car finance. These are financed lease, Chattel mortgage, and car loans. The best option for those with bad credit and need a car fast is a finance lease.

With a finance lease, you will be renting the car with the option to purchase the vehicle at the end of the contract. You can find a lot of car finance companies in Australia that can offer you the best deal for a car of your choice.

Use your credit card

A tempting option is through your credit card. Because of the vehicle’s price range, the rewards you can collect will be a lot. However, it comes at a hefty price.

Before you do anything, make sure you have a clear understanding of how much interest you can expect. Additionally, dealers often charge a merchant charge, which can spike the prices even higher.

Mortgage redraw

If you’re a homeowner, then one option is redrawing from advance payments on your mortgage. The advantage of this method is that it is easily accessible.

Most home loans today have an offset or redraw facility. It allows you to make extra repayments and still have access to that money when you need it. That means you are “saving” some cash as you pay your mortgage. You can take out the extra money and use it to buy a car.

However, there is a downside. Paying for it will cause your mortgage to last longer and even add interest. That is why if you plan to use this method, then you should consider increasing your repayments to help compensate for the car payment.

There are plenty of ways for you to finance a car. The important thing is to figure out how you should pay for it over time. A car lease is one of the most efficient ways to finance a car in Australia.

It gives you the option to drive a car at an affordable rate, rebuild your credit if you need it, and have the option to buy the car from the dealer when the contract is over.

 
 
 

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