If you’ve been considering upgrading your current motor vehicle or buying an additional car for the family –now may be the time to do it.
With interest rates at all time lows, and with dealers about to commence their annual EOFY stock run outs, this is an excellent time to consider upgrading your ride and nabbing yourself a bargain in the process.
It’s possible interest rates may rise as the year goes on as we’ve seen increases in vehicle rates over the past few months. We’re definitely on the increase in the current cycle, so now is an opportune time to move and lock in a historically low rate.
Unlike home loans, all motor vehicle interest rates are fixed which is even more reason to organise finance now and lock in a low rate for the life of the loan.
Consumer Leases provide flexibility
A recent product development is the arrival of the Consumer Lease. This product allows you to structure your finance with a balloon payment in the same manner that businesses do. This results in substantially cheaper monthly outgoings or the ability to afford a better vehicle than what the budget allows.
This structure can be used to finance both new and second hand vehicles. With the low interest rates and a balloon payment we’ve seen clients save hundreds of dollars per month on their vehicle commitments, particularly if they’ve been paying off high interest rate loans which is a common occurrence.
Vehicle interest rates from 3 – 5 years ago were substantially higher than current rates and the loan options were far more limited. This meant many individuals and families were paying substantially more in repayments than they would be in the current market. If the previous finance had been arranged via a car dealership, sometimes the costs were just mind boggling.
The ability to include a Balloon payment into a contract also allows you to perhaps consider a vehicle that may be more suitable for your needs but was previously outside your budget. There are many benefits to this such as:
– Better warranty cover
– Better resale value
– More fuel efficient vehicles
– Upgraded safety and technology features
Doesn’t have to be a new vehicle!
Although the car yards are about to commence their sales, it doesn’t mean that you can’t purchase a second hand vehicle. We all know that some great bargains can be had in the second hand market, whether that be direct with a car yard or if you source your own vehicle direct from a private sale or even from the Auctions.
You can still finance your vehicle using a Consumer Lease product and build in a Balloon if you so desire. There may be limitations depending on the age of the vehicle at the end of the term and we suggest you contact to discuss your options and the process prior to commencing your search.
We have accreditation’s with all the major lenders!
Over the years we have developed great relationships with the majority of the lenders in this market. We know the market well which allows us to match your needs with the most appropriate lender. All lenders have a risk matrix that they apply when pricing their rates and we have a thorough knowledge of these matrix’s so that we can place you with the most competitive lender.
We also have years of experience in structuring these types of loans and taking them through to settlement. Purchasing second hand vehicles can be a risky business and we’ll help guide you through the process to ensure that you’re protected at all times and do not end up with a stolen, chopped or encumbered vehicle.
We can obtain Motor Vehicle finance for:
- Individuals (consumers)
- Self employed
- Companies
Contact us now on 07 5554 5221 or email helen@capitalfunding.com.au to discuss your individual needs. There’s not just one motor vehicle finance structure and it’s important to ensure that your finance is correctly structured to meet your needs.
Did you like this article?
If you would like to receive more articles similar to this, feel free to subscribe to our list and we’ll guarantee that we’ll only forward timely and informative articles that we promise will help you create wealth or save money. If you have a friend that you think could benefit from this article, please feel free to forward this through to them.
NB: Your privacy is of utmost importance to us and your details will never be passed onto another a third party. See our privacy policy.
_______________________________________________________________________
Article by Shayne Fergus, Capital Funding Group
