Wilson Finance Solutions
With the end of the Financial Year upon us now can be an opportune time to consider purchasing a new vehicle. For the majority of us this means applying for a car loan to finance the purchase. It’s vital that you carefully consider all of the options on the table before driving your new wheel off the showroom floor. Here are our top five most important things to consider before you drive away.
1. DON’T JUST ACCEPT DEALERSHIP FINANCE
As a rule, car dealerships will only have a single Financier. At the time this may seem like the quickest & easiest option to secure finance. However, this may not be the most suitable option for your needs. Dealerships providing finance are not governed by the NCCP Act. This means that when finance is provided at the “point of sale”, dealers are exempt from the responsible lending guidelines contained under the Act.
Don’t forget the goal of the Dealership is to clear as much profit from your finance package as possible. It pays to shop around beforehand.
We’ve all been there – your new car sat there ready to go and they throw 60 pages of finance documents in front of you – “have a read and if you’re happy to proceed sign here, here and here”. Do you read it all, or do you just want the keys to the car? The convenience factor they will sell you can cost you thousands.
2. LOOK AT REPAYMENTS, NOT INTEREST RATE
Many people enter in to vehicle finance based on the Interest rate. Don’t. The most important thing to look a