EFFECTS ON CAR LOANS

Do car specs and features affect the car loan?

Most manufacturers offer a number models within their ranges and within each range, some offer quite a few variations. You may be considering a single ‘car’ but then you’re confronted with multiple choices within that one car package. It can be confusing and buyers should consider each option on its merits as to whether or not they need or want that feature.

The standard variants can relate to engine size, number of cylinders, standard or turbo-charged and these days, petrol or hybrid engine. Then can come a whole heap of different features which are available on this model or that model and just browsing the specifications table can put your head into a spin. Once you have sorted the standard features that you want on your car, next comes the optional extras. Buying a new car can be a challenging but very exciting experience.

When choosing the variants and options for their car, buyers may or may not in some cases, give considering to how these ‘extras’ and ‘upgrades’ may affect their car loan.

At Jade Car Loans we work on making your car buying a more enjoyable and less confusing process by handling all aspects of the finance and answering your questions around car loans and motor vehicle finance in general.

In regard to choosing add-ons and extras and upgrading to a larger engine etc which means a higher overall purchase price, then the effect on your car loan will be higher repayments. But the configuration of your vehicle with the variations, different engines, off-road packages etc does not affect the cheap interest rate that Jade can achieve on car loans nor does it impact the loan application process, in most cases.

Of course if you choose a very expensive car and your borrower profile does not meet the guidelines for that priced car, then the overall car price will impact your chances of getting a car loan.

While considering the different upgrades and variants, we encourage buyers to use our Jade Car Loans calculator. This device will allow you to calculate rough repayment estimates on different car loan amounts. So you can quickly and easily see how those upgrades may add to your monthly repayments. This will only be a ballpark but is a useful tool when considering extras.

The configuration of a car including extras may have an impact on your car insurance policy. Some insurers take into account the type of vehicle including all the variations and extras when pricing individual policies.

What does affect your car loan?

  • As a professional finance broker and licensed credit provider, for personal car loans (consumer finance) Jade Car Loans operates under the guidelines as set out by ASIC.
  • The ASIC guidelines do not apply to business vehicle finance. However, as a member of the FBAA, Jade operates under their Code of Conduct and to the highest standards of integrity and professionalism.
  • Jade Car Loans provides customers with loan offers that meet their individual requirements and which our consultants consider are suited to their objectives.
  • Your Jade consultant will present your application, either personal or business, to our large number of banks and lenders to source the best car loan offer.
  • Our lenders assess car loan applications on their individual merits and within their individual lender guidelines. These assessments include your credit profile, financials and other documentation. Each lender will do a risk assessment on a loan application based on the borrower profile not the specifications of the car.
  • New cars will be considered based on the total loan amount not the configuration of specifications and features.
  • Lenders do take the age and condition of used cars into consideration when pricing car loans. This is to ensure that the overall loan amount is balanced with the value of the car over the loan term.
  • In some cases such as with ABN only, low docs and no docs loans and with some older vehicles, lenders may request that the borrower pay more of a deposit on the vehicle.  
  • The interest rate is the key determinant for pricing car loans.
  • The interest rate that your Jade consultant can achieve for your loan will be priced both on your risk assessment as determined by the lender and on the price that that lender has to pay to source their own funds.
  • The interest rate offered on car loans at any one time can vary from lender to lender which is why Jade Car Loans sources the best loan offer from across our large number of lenders.

Getting a Cheap Car Finance Deal

Jade Car Loans will assist you in sourcing the cheapest car finance deal either for private or business vehicles, despite the vehicle specifications. Our consultants are skilled negotiators and will use our strong bargaining power in the market to get you the best interest rate.

To discuss a personal car loan or business vehicle finance, speak with a Jade Car Loans consultant 1300 000 003

DISCLAIMER: NO LIABILITY IS ACCEPTED BY JADE CAR LOANS IN THE PRESENTATION OF INFORMATION AS SOURCED FROM MANUFACTURER AND GOVERNMENT WEBSITES AND DOCUMENTS. THE INFORMATION IN THESE ARTICLES IS INTENDED FOR GENERAL CONSIDERATION ONLY. THE INFORMATION FROM THIRD PARTIES IS SOURCED VIA THE PUBLIC DOMAIN IN MANY INSTANCES AND NO LIABILITY IS ACCEPTED FOR MISREPRESNTATION OR ERRORS. READERS ARE ADVISED TO CHECK SPECIFICATIONS WHERE NECESSARY. FOR FINANCIAL ADVICE ON YOUR SPECIFIC FINANCIAL SITUATION AND TO MAKE DECISIONS AROUND FINANCE, ALL PERSONS ARE STRONGLY RECOMMENDED TO CONSULT WITH THEIR ACCOUNTANT OR THEIR FINANCIAL ADVISOR.

Leave a Comment

Your email address will not be published. Required fields are marked *