AutoCarLoansTips - If your job is not secure, it may be better to build up a bigger deposit before getting a loan. Save up as much as you can, so you can borrow less and save on interest. Before you borrow, always remember to allow for interest rate rises and anything that might affect your future income (such as changing jobs). use budget planner calculator to see exactly where you are spending your money and how much you can afford in repayments.
If you decide to borrow, take time to compare interest rates, product features, and fees and charges. Even a small difference in the interest rate can make a big difference to what you have to pay. Shop around online to compare products or use multi-loan calculator, research published by the independent consumer group CHOICE can also help you find the right product for your needs and budget.
If you feel like you’re being pressured into signing something you’re not sure about, take more time to think things through. Check the terms and conditions of your loan before you go ahead, so you know exactly what you’re getting into – including penalties for missed repayments or for paying off a loan early.
Know who and what you’re dealing with, because anyone who wants to engage in credit activities (including brokers) must be licensed with ASIC, or be an authorised representative of someone who is licensed. If they aren’t, they are operating illegally.
There is currently an exemption from licensing for credit assistance provided through some businesses (for example, retail stores and car yards). While the store may be exempt, the actual credit provider must still be licensed. If you are unsure who the credit provider is, ask the person you are dealing with to point out the name in your credit contract.
Anyone engaging in credit activities (for example, by providing credit or assistance to you) must give you either a credit guide (with information such as their licence number, fees and details of your right to complain) or a written notice with details of your right to complain about their activities.
Keep your repayments up-to-date to avoid being charged any penalty fees. Act quickly if you are having trouble making repayments. It may be difficult to face the problem, but ignoring it will only make things worse. In case you can’t make the full repayment, pay what you can. Contact your credit provider without delay.
The last but not least make sure you keep the car comprehensively insured. If you have a secured loan for your car, you will usually need to get comprehensive car insurance. But whether your car is security for your loan or not, accidents and thefts do occur and you do not want to be left with no car and a large loan still to repay.
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