Finance A Car

Finance A Car

Not everyone has enough savings to pay for a new car’s full amount upfront, so many Australians look for other ways to finance a car. People who want to finance a new car rather than pay for it in full usually look up ‘new car finance’ and ‘finance vehicle’ online to get recommendations on what’s their best option for financing their dream car.

If you’ve also done that before, you probably came across results for cheap car loans in Australia or the like. The search engines aren’t wrong; car loans are definitely one of the best ways to finance a car as long as you choose the right lender.

Interested in online car financing? SocietyOne is one of the most reputable online finance and loan companies you’ll find in Australia. We have helped thousands of people acquire their dream car while still enjoying financial freedom and control. The good news is that our loan application process can be done entirely online, so you don’t even have to step outside your home to get the funds to finance a car. With our streamlined process, it’s possible to get the funds in your account within one business day after approval as well.

Because we want you to make an informed decision when it comes to financing your dream car, we have addressed the top FAQs for online car financing. Read on to learn about the other ways to finance a car, whether financing a car is more affordable than paying in cash, and if a car finance loan can help improve your credit score.

What is the best way to finance a car in Australia?

It’s always a good idea to explore what other options are available to you before making your decision. Below are the top ways to get funds to pay for your dream car:

Use your savings

Withdrawing your savings to pay for the car you want is one way to avoid interest fees and other charges. However, doing so may deplete your savings or disrupt your cash flow leaving little to no room for emergency expenses.

Purchase on credit card

Having a credit card can get you many things, including a car if your credit limit allows for it. One thing to consider, however, is that many credit card companies charge outrageous interest rates on top of credit fees which may not be the most economical option.

Get a personal car loan

Car loans allow you to spread out the amount of the car you want over some time so you can pay for the car monthly at low repayments. This can free up your cash flow, enabling you to pay for other things like your medical bills or kids’ needs first.

SocietyOne offers two car loan options – a secured car loan and an unsecured car loan. The secured loan option lets you borrow anywhere from $5,000 to $70,000 to finance a car for up to seven years. The car will be used as collateral to lower the risk and enable you to get good interest rates. With our unsecured loan option, you can borrow up to $50,000 for periods of up to five years. In this type of loan, we won’t use your car as a guarantee against the loan.

Is it more affordable to finance a car?

Buying a car in one lump sum means you won’t have to deal with monthly repayments and interest charges. However, this way of financing your car may disrupt your cash flow and savings, leaving little to no room for unexpected expenses. Meanwhile, a car loan allows you to pay for the car in partial amounts, so you don’t have to empty your savings account completely.

Financing a car using a car loan can be more affordable than paying for it in full cash as long as you land the right deal from the right lender. This is why it’s important to make comparisons between different lenders, so you know if getting a car loan is the more cost-effective option for you.

SocietyOne uses a risk-based pricing mechanism, which means you can get a lower interest rate the better your credit profile is. This can result in bigger savings than getting a loan from banks and other traditional lenders in Australia. On our platform, you can find a per annum comparison rate table of our rates compared to that of the big banks in Australia. You can also calculate an estimate for your loan repayments using the personal loans repayment calculator on our platform to help you decide.

Does financing a car help improve my credit score?

When you finance a car using a car loan, it will lower your credit score at first. But as you make on-time loan repayments, your credit score will gradually improve, impacting your overall credit history positively. Your credit score will definitely increase as long as you satisfy all the factors that contribute to a good credit profile, such as your payment history, debt-to-credit ratio, length of credit history, and the total amount of credit you have.

At SocietyOne, you can get unlimited access to your credit score for free, so you can check your score any time you need to. We will also give you some tips on how to improve your credit score so you can get better deals, plus you can track your credit score improvements on our platform as well.

Looking for another type of low-interest personal loan? You can get a debt consolidation loan, renovation loan, and wedding loan, among many others at SocietyOne.

Complete your online loan application at SocietyOne now to improve your chances of finally getting the funds you need to finance a car.