Whether it’s your first car or you’re tired of relying on your old wheels, buying a new car is a big decision. Here’s how to get your finances sorted, and some tips to consider.
Let’s face it – there are many, many important decisions involved in buying a new car.
Choosing make, model, paint colour comes first usually, but early on in the process you should start thinking about how you’re going to pay for your wheels, so you don’t fall in love first, and have to make financial decisions based on emotion.
Ideally, you’d be able to walk into a car dealership and pay for your new car outright using cash. Paying this way will save you a considerable amount in interest payments, and you’ll have the satisfaction of knowing the car is 100% yours when you drive off the lot.
In reality, saving for what will be one of the larger purchases we are likely to make (after buying a home) can be tough. However, with discipline, focus, the right budgeting knowledge and a savings account that rewards your good habits, it’s definitely possible.
Save time and open a Bonus Saver Account using your online banking details. Not registered? Phone 13 13 86.
Already a customer banking online with us?
Sometimes, even our best intentions when it comes to saving aren’t enough, and we need to finance our new car purchase. Whether you need to take advantage of a bargain price, or your old wheels are on their last legs, getting a New Car Loan can help you get behind the wheel sooner.
Greater Bank Personal Loans offer competitive interest rates with no monthly fees, and are repayable over a maximum loan term of seven years. We also offer free unlimited redraws on your loan, and are able to approve your loan in as little as 24 hours (subject to meeting our lending criteria and the provision of documentary proof).
Save time and apply for a Personal Loan using your online banking details. Not registered? Phone 13 13 86.
Already a customer banking online with us?
Save time and apply for a joint Personal Loan using your online banking details. Not registered? Phone 13 13 86.
Already customers banking online with us?
If you’re shopping around for a new car, van, ute or 4WD, put your foot down and check out our New Car Loan.
If you’re opting to pay for your new car with a Personal Loan, here are some things to consider before you start hitting the car yards.
Especially important if you’ve had a chequered credit history, or you’re a bit of a newbie when it comes to personal finance is knowing your credit rating. You can do this easily through an online credit checking service, and knowing your score may just let you avoid any unpleasant surprises when you find the car of your dreams.
Your credit report will outline the last seven years of your credit history, including your past applications for credit, any bankruptcies or overdue accounts you may have had during this time.
If you’ve found the perfect car but think you may be able to get a better deal elsewhere, don’t hesitate to negotiate with dealers, and be patient. It’s your right as a customer to walk away – don’t feel pressured, and be sure to take some time to think if you need it.
After all, if you’re buying with a Personal Loan, and can negotiate a better deal, this means a lower loan amount, and less interest you’ll need to pay in the long run.
As well as budgeting for the cost of your actual vehicle, it’s important you factor in the ‘on-road’ costs associated with buying your new car. These are costs which you’ll need to incur to make sure your car can be legally driven.
Of course, you’ll need to register your new car, but on top of this, you’ll need to budget for:
A percentage of the purchase price of your vehicle that goes to the government.
CTP or Compulsory Third Party personal injury insurance (applicable in NSW).
You’ll also be up for number plates and dealer delivery.
Your CTP is one thing – in NSW you won’t be able to drive off the lot without this in place. However, the level of Motor Insurance you opt for is up to you.
Given that you’re entering into one of the largest purchases you’ll ever make, you may want to consider a level of cover to suit your needs and budget to protect your asset.
After all, no matter how good a driver you are, it’s impossible to predict what may happen once you’re out on the road.
Maybe you’re not alone. Our FAQs answer some of the more common banking questions we get asked.
Our friendly staff are happy to help with all your banking needs. Find a location near you across NSW and South East QLD.
