Buying cars in Australia get much easier when you know the means of financing the urge. There are banks, financial institutions, dealers and standalone private intermediaries to take care of the money part for the car but what matters the most here is being able to negotiate the deal not only with the dealer of the car but with your loan provider as well.
The first thing to do is to figure out the car that you want to get for yourself and the family by considering the needs it should fulfill of the respective users. The next task is to choose the color, find out the dealer and upgrade or downgrade the specs if required. The dealer of the car would not only be pitching you for the car as a whole but for extra warranties and even mats as well. So, if you are already tight on budget then it is recommended to stay within the limit of your would-be spending. Considering the need of scoring the flexible terms on car loans, below are given a few tips to help you in negotiating the prices with the dealers in Australia, such as:
Talk Over Final Price
You could often find the car dealer asking you to tell them about the monthly payments you could pay or how do you want the payments to be? Well, it’s a trap, do not fall for it. In fact, in order to score the best car loan rates Australia, you should score the best car price deal first. This would require you to talk to the dealer over the actual price of the car instead of the monthly payments or installments. The later would not do any good to you rather merely lure you into an abyss of nothingness.
Negotiate On The Loan Payment Terms
Another important factor to negotiate over other than the loan rates for a car in Australia is the terms of repayment or payback. Nowadays, dealers do not bring down the actual prices of the car rather gives cushion to the buyer by extending the repayment period. Many dealers have started providing a load for up to 7 years which is insane. Considering the fact the car is a depreciating asset, one should not exceed the repayment limit to more than 4 years or at max 5 years. Anything more than 5 years in the name of car loan repayment is going to cost you much more in terms of an opportunity cost.
No Extra Upgrades
The car loan negotiator from the financial intermediary’s end will try to sell you extra plans such as gap insurance, paint protection, car alarms or extended warranties at huge markups. It is not that these things are not useful but you can get the same things at much lower prices in the market. For instance, you can do the paint protection yourself in a few bucks, council credit institutions can provide you with better gap insurances and similarly, rust proofing is not required for modern cars nowadays. Hence, be very vigilant of these car loans Australia gimmicks.
Say No To High APRs
Another thing to consider here is one should never opt for a car loan which makes you pay higher APR. The interest rates are determined based on your credit rating, if the rating is good you would be offered single digit APR, if it is average then you might get an APR from 8 to 12 percent and if it is bad then it could go up to 15% as well. Bear in mind, never get the car loan in Australia at a higher interest rate, it is not worth paying an exorbitant amount in the name of interest for a car. Doing so will hit back at you in the long run.
Set Emotions Aside
Buying a car with auto financing is indeed a very emotional decision especially if it’s about buying a dream car. When you get the thrill of the test drive and whiff of that new car smell, it gets difficult to let go of the car under negotiation. But to score a good car loan rates Australia, it is an absolute necessity to keep your emotions aside. Prepare your mind to let go of your favorite car if the dealer is not willing to negotiate further or the discussion has come to a standstill. Your emotions should not trap you into a loan which will ask you to pay a higher APR in the future.
Once you reach the desired consensus over the car with the dealer then the next call is to strike a deal with the financial intermediary over the installments or the monthly payments. This part would become much easier once you would have negotiated over the aforementioned handy tips.