Want to save money in the long term?
It will more often than not save you significant money over the life of your loan if rather than buying the cheapest car you can afford with your hard earned savings, you take out a loan for a new car with repayments that comfortably fit within your budget. You get to keep your money in the bank for emergencies, or that family holiday you’re saving for, and you will significantly reduce your risk of having to pay unexpected maintenance costs .
Want a car with low running costs?
Although there are many cars on the market that can be bought with cash quite cheaply, usually these cars are cheap because their running costs are much higher. By taking out finance for a car you might not be able to afford with cash, you could be saving yourself moneyin the long run by reducing your maintenance and fuel costs.
Need a car for getting from A to B?
If you are on a budget, and just need a car to get you to work each day or drop the kids off at school, quite often going for the cheapest option can end up costing you a lot more in the long run, due to their higher fuel and maintenance costs.
Want peace of mind?
Once you’re comfortable with your monthly repayments for your loan and comprehensive insurance (all of which we can assist you with). You can have peace of mind knowing that you won’t have unexpected expenses to keep your car on the road and keep your life running on time. We can even extend the manufacturer’s warranty for you to ensure peace of mind for an even greater period if you don’t plan on upgrading your car once the manufacturer’s warranty expires.
I can afford the car I want, why should I finance?
Car finance isn’t just beneficial for those that don’t have the cash to buy the car they want now.
For example, if you are looking to purchase a car for $50,000 and you have the money in your bank to purchase it outright, if you spend all of your hard earned savings on a new car you will never see the cash again.
The unfortunate thing with cars as we all know, once you drive the car out of the dealership the value drops, and will continue to drop throughout its lifetime. By spending your hard earned savings on a depreciating asset, you will never see a return on your investment. Alternatively, if you finance a car, you still have your savings with which you can invest in opportunities that will grow your capital.
Although you pay interest on a car loan, the average investment will increase greater than the amount of interest you pay over the term of the loan.
Comparing compound interest with reducing interest
Even if you go for the safest of investment opportunities and lock your savings into a term deposit account, although interest rates on savings accounts are lower than interest rates on car loans, in the majority of circumstances you will still earn more interest on your savings than you will pay on your car loan.
This is because we are comparing compound interest with reducing interest. Every time you make a payment on your car loan, you are paying interest on a lower amount.
However, with a savings account, every time you earn interest, you are then earning interest on a higher amount.
By financing your car as opposed to paying cash – at the end of your car loan you have your car fully paid, as well as your initial investment that you would have spent on the car, plus the capital gains the investment has experienced over the loan term.
Why Choose Credit Capital Car Loans?
At Credit Capital, we take the guess work out of the situation for you.
With access to over 25 of Australia’s largest car finance lenders, and the years of industry experience our dedicated consultants bring to the table, we have the knowledge to match you to the lender best suited to your individual circumstances, and ensure you’re getting yourself the absolute best deal in every transaction.
It’s not just the fact that we get the end result that sets us apart from the competition, it’s the fact that we are able to get it right first time and do it much quicker as well.
To ensure you are always getting the best deal for yourself, you need to ensure your credit score remains as high as possible by minimising the amount of enquiries on your credit file.
How are Credit Capital Car Loans Different?
Some brokers will narrow down your application to a few different lenders, apply to each one and see which one comes out best.
Although this may sound like good practice, it can have a seriously negative impact on your credit score.
What most people don’t know, is that every time a formal application is presented through to a lender, the enquiry will be listed on your credit file and lower your credit score.
If you have several enquiries listed in a short space of time, this could lower your credit score to the same level as someone who has a collection of defaults on their credit file, making it near impossible to get you the low interest rate you truly deserve.