Car Financing Company or Bank – Which Is the Best Option for Financing a Car
Buying a car is no simple decision as it involves a significant investment. There are a lot of things to consider when buying a car and car loans Sydney is one of them. In fact, a car purchase is the second most expensive thing you’ll buy after your house, so it makes sense to ensure to choose the best way to buy a car.
When it comes to a car loan, there are two options, including dealership and bank. However, the right choice between the two depends on several factors. Based on your requirements and affordability, picking one option over the other could save both time and money.
Financing through a car finance company
Financing your car through a car finance company is often easier to successfully apply than a standard bank loan. Yes, the process is quite easier and straightforward. On your behalf, they will process the application and do the needful. The loan period will generally be between 1 and 7 years, and full funding available for new cars and 80% for a used car.
Before applying for personal car loans Sydney through financing companies, it is of utmost importance to check the eligibility criteria in order to avoid rejection. Yes, the lower the credit scores, the lower the chances of getting a loan. It is a good idea to check whether you meet all the criteria before approaching the lender for loan application.
Usually, you could get lower interest rates on a new car through a dealer than on a used car. In fact, some company may offer promotional financing on brand-new models, for low rates to those who qualify.
If you opt for personal car loans, you could borrow a lump sum and make regular set payments. It would normally be up to five years. It could be either secured or unsecured. However, unsecured personal loans have higher interest rates, and you’ll have between one to seven years to pay it back.
Financing through a bank
You could approach a bank directly and check for car finance offers Sydney. Generally, you’ll get a preapproval for the loan even before approaching the showroom. Yes, the bank or lender will provide you with a quote and a letter of commitment that you could save some time when finalising the contract. The rates from the bank or lender would be true and don’t include any markup. However, the banks will check your credit score before processing your loan application to check whether you are eligible or not.
It is essential to prepare yourself before applying for car loans. Check your credit score and improve it before approaching a lender. Both of the options have their own pros and cons. Choose the one that fulfils your needs and requirements.
The author works in a reputed car finance company and offers a wide range of flexible financing services, including car loans Sydney. Visit http://financingandco.com.au for more details.