Finance Car

Finance Car

Owning your first finance car brings both excitement and trepidation, no matter how seasoned the driver or owner is with vehicle loans. Are the weekly car payments worth it? Should you have gotten the newer version of the car? How soon can you trade your car in?

These are questions every car owner has asked themselves at some point. A newer car doesn’t always mean better or more improved, though, and this principle applies not only to cars but to car finance rates as well.

Let’s talk about it.

Is it possible to get a refund on a financed car?

You’d have difficulty finding a credit provider or car finance company that will entertain a request for refunds for a car with perfect working conditions.

Buyer’s remorse is generally not entertained when it comes to a finance car. At best, your dealership may offer a trade-in instead, often with commensurate personal car loan rates or charges.

If you’re requesting a refund due to financial hardship, we suggest contacting your credit provider for the online car financing first and immediately about loan relief or adjusted repayments.

How soon can I trade in a financed car?

Technically, you can trade in a finance vehicle at any time – but the safest and most responsible answer is to do so only after an online car loan has been paid in full. Here are some reasons why.

You’re obligation-free on your car payment plan

Regardless of what you do with your finance car, you’ll still owe the original car mortgage to your credit provider. This doesn’t go away just because you’ve changed vehicles.

If you got your finance car through a car payment plan that accepts trade-ins, you might end up paying off your principal loan plus additional charges. A trade may depend on how much of your loan you’ve already paid off before they’ll entertain you or have a time limit for when you can apply for a trade-in after getting your car financed. You may even get an outright refusal if you’ve missed a couple of your repayment deadlines.

Don’t add negative equity to your auto loan

For the same reason that it’s ill-advised to sell your car before you’re done paying off your car loans, trading in your finance vehicle can be more of a hassle than anticipated, as it essentially doubles your credit obligations.

On top of your ongoing loan, if your desired finance vehicle to trade is worth more than your current one, you may have to pay out-of-pocket to either match the market value or close the existing loan first.

Getting a second finance car loan to augment your current car’s equity for a trade-in is also a credit move we discourage. This will reflect on your credit history as two overlapping loans for the same asset, in turn making it possibly harder for you to get more competitive credit offers for other purposes.

Your desired car may be over- or undervalued

An unexpected recall for a car model will cause a steep drop in its market value – and if your trade-in vehicle has been subjected to one, you’ll end up with a car that may be worth much less than the one you traded it for.

You may even have to surrender your current finance car immediately, depending on the seriousness of the recall reason. In a situation like this, you may end up owing credit for an asset that you can’t utilise as intended.

Some car models or makes may also generate a temporary market scarcity, either from sudden increased demand or popularity. Waiting out the pricing surge tends to lead to better deals overall, and giving a brand-new model a few years to get tested by the market will assure you of its quality and efficiency at no personal cost.

How do I get car financing online?

There are some general eligibility criteria for finance car applications. As car loans fall under personal loans with guarantor requirements, these are the documents we’ll likely request when you apply:

• Proof of identity, such as government-issued ID cards
• Proof of address, such as utility bills or existing vehicle registration
• Proof of income, such as bank statements or payslips
• Proof of obligations, such as credit history or any outstanding credit liabilities

SocietyOne wants to offer a fairer and faster finance car loan than what banks would. These documents help us to tailor loans to your unique credit score and loan preferences.

Other loans with similar requirements include loans for renovations and holiday loan options.

If you have any enquiries about specific credit products or application processes, we can be reached through email at customer.service@societyone.com.au or through phone call at either 1300 144 221 or 02 8397 9700. Phone support is active from Mondays to Fridays, 9.00 a.m. to 5.00 p.m. AEDT.

Keep your credit score updated with SocietyOne

Personal online loans are a great form of credit that’s been tried and tested over the past years. Given the great number of credit providers in the lending market, finding an online loaning platform that you can trust can be daunting.

As a licenced and regulated credit provider, SocietyOne offers several award-winning credit products that have helped thousands of clients all over the country to address budget gaps and finance personal goals. You can use our Credit Score tool, which allows you to get your credit score for free. We also have a club that gives members unlimited access to credit improvement insights.

Credit is a powerful financial tool when wielded responsibly. You can use it for debt consolidation, finance car loans, or loan repayment purposes. Let us introduce you to a new world of opportunities through credit – apply for a personal loan at SocietyOne loan today!