What to do before applying for a car loan.
Doing your research before taking out a car loan? Fantastic! The best way to ensure you get a good deal is to come into the process with a good understanding of how it works.
However, there’s a lot of information out there surrounding car loans, and it can be difficult to know exactly where to start when compiling all the information you’ll need. To make things a little easier, the Beyond Bank team has put together this handy guide of what to do before you take the plunge and apply for your loan.
Step 1: The car
When researching the types of car loans available, a good starting point is to know what car you’ll be applying for. The basic information such as your budget, the warranty you want and predicted running costs are all good places to start, but going further into depth will come in handy throughout the process.
For example, have you decided whether you’ll be buying new or secondhand? This choice can have a big impact on the type of loan that you’ll get, with new cars typically coming with lower interests rates, even though the purchase price may be a bit higher.
If you are buying a secondhand vehicle, it’s a good idea to have the car thoroughly checked by a registered mechanic. This will give you peace of mind that the vehicle is roadworthy and in good condition, and will last the length of the loan without any problems.
Step 2: You
Before you apply for a car loan, it’s important to know what sort of information your lender will be looking at when assessing your application.
Get any relevant documentation together as soon as possible, such as payslips, bills and bank statements, to provide your lender with an overview of your financial situation. This will be required, so avoid any stress later on and start compiling these documents as early as you can.
Step 3: The bells and whistles
Finally, getting a car loan doesn’t end when the vehicle is sitting in your garage. There are a few other steps you’ll need to take to make sure everything runs smoothly. One of the most important is organising your insurance before you drive your car off the lot. By law, you’ll need a minimum of Compulsory Third Party (CTP) cover, but most lenders will also require you take a comprehensive car insurance policy which will offer better protection in the event of an accident.
When looking at lenders, it’s a good idea to pick one that can offer insurance as well as a loan – such as Beyond Bank. This way, all of the information surrounding your new car is located in one place, and you won’t have to deal with multiple points of contact.
For more information on securing the best car loan for you, contact Beyond Bank today.