Automobile Financing 101: 5 Best Ways to Pay Off Your New Car

new cars brisbane
Jason Rodgers

When looking for a new car in Brisbane, the first things that would normally come to your mind are the model, colour, and other major specifications that it has. After all, these are the essential factors that drive any buyer’s decision when purchasing a vehicle. However, there is also another very important aspect that you should remember in this type of investment—financing. As a vehicle will probably be the second largest investment that you can make in your life after your home, you should have the best financing option that will suit your circumstances. With this in mind, here are five of the best ways to finance new cars Brisbane has:

 

new cars brisbane

 

1. Car Loan

The most common option that you can have, a car loan can have a fixed or variable rate and can come as secured or unsecured. If you are taking a secured car loan, its interest rates would be lower, but keep in mind that the lender will have rights over your car if you are no longer able to make repayments. So, if you buy a Brisbane Mitsubishi Outlander, for example, and stop paying monthly, the lender can repossess the car. Nevertheless, car loans are more straightforward and simpler to understand compared to other financing options.

2. Dealership Financing

Under this option, you and the dealership enter into an agreement where you buy a vehicle from them and agree to pay a financed amount plus an additional financing charge over a period of time. Typically, the dealership will then sell the contract to a bank, which in turn services the account and collects your payments. This a good option to take when, for example, you are buying a Mitsubishi ASX Brisbane has and does not have the time to process the papers. Basically, dealer financing is a convenient one-stop shop for car financing.

3. Factory Finance

When buying new cars Brisbane has, auto manufacturers sometimes offer lease deals, which is called factory finance. They would launch deals that package the prices of their cars, servicing, and even insurance. But under this option, you do not own the car at the end of the contract unless you make a one-off payment.

4. Mortgage Redraw

These days, most home loans in Australia come with a redraw option that allows you to make extra repayments while you still have access to the money. Now, you can take advantage of this to pay for your new car. For example, you can redraw $50,000 to pay cash for an ASX Mitsubishi Brisbane has and perhaps even negotiate a discount. However, take note that the longer you owe money on your vehicle, the more it will cost you.

5. Novated Lease

Basically, this is a method of packaging your new car that involves a three-way contract between you, your employer, and a lease company.

Whatever option you take, make sure that it will suit your needs by comparing important elements that each financing method has, such as monthly payments, interest rates, additional charges and fees, etc. Ultimately, your decision should depend on your financial circumstance and personal preferences. Now, for great new cars Brisbane has for sale, you can visit http://brisbanecitymitsubishi.com.au/

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