Revealed: The No.1 Car Finance Mistake to Avoid
What is a Finance Pre-Approval?
This is like getting permission from a bank or lender to borrow money for a car before you actually buy it.
Here's how it works:
1. You tell the lender some basic information about yourself, like how much money you make and if you owe money to others (like credit card debt).
2. The lender checks your financial history, like if you pay your bills on time (this is your credit score).
3. If the lender thinks you can repay the loan, they give you a "pre-approval." This means they say, "Okay, we might lend you up to this much money for a car."
4. With this pre-approval, you know how much you can spend on a car. It's like having a budget.
So basically a car loan pre-approval is like a green light from a lender to shop for a car with confidence!
How Autobuddy Can Help
Find out your credit score & borrowing power today. It's 100% no obligations and a free service provided by Auto Buddy. Click the link to take the 30 second quiz.
To avoid this mistake its best to reach out to a certified car finance expert.
They can help you with understanding what your credit score is. Most importantly, they run a 'soft check' so it does not impact your credit score any further.
This way you will know exactly what your credit score is & then how much you can borrow.
They will also ask for a few documents & pieces of info to help determine your borrowing capacity.
After a few minutes, you will know exactly what your credit score is & how much you can borrow!
Summary:
- Your credit score will impact how much you can borrow in a big way
- You could pay anywhere from 6% - 20% interest depending on your credit score
- Finding out your credit score & borrowing capacity with a pre-approval
- A finance broker like Autobuddy is the best place to get pre-approved today
How to get lower repayments on your car loan
No time to read the article?
1. The interest rate you get depends heavily on your credit score
2. Reducing the cars purchase price by 5%+ will have the biggest impact on repayments
3. Negotiating a better car purchase price is easier with a car finance pre-approval
Useful Links
Disclaimer: Autobuddy is a subsidiary of BPM Digital Pty Ltd (ABN 40 646 305 820). Autobuddy is a GENERAL ADVISORY service. All information has been prepared without taking into account your objectives, financial situation or needs and you should consider if the information is appropriate for you before making a decision. Autobuddy does not make any recommendations as to the merits of any opportunity referred to in its emails or its website. You should consider the relevant product disclosure statement before making a decision about the product and seek qualified financial advice if necessary.
"I used Autobuddy to find out how much I could borrow & it turns out it was $50,000 which was less than I originally thought." - (Orlando, VIC)
As we said, don't waste your time dreaming of a car you can't afford!
Find out how much you can borrow today.
It only takes 30 seconds. That's right. Head over to www.autobuddy.com.au & complete the 30 second online quiz to find out your credit score & if you can get pre-approved.
See what happy customers have had to say:
AUTOMOTIVE | FINANCE | REVEALED: The Number One Car Finance Mistake to Avoid
Joanna Smith
2nd August 2023
▷ This common mistake costs people time & money
▷ A simple 30 second check to help avoid it
▷ The right order to go about car finance
Not Knowing Your Credit Score Will Hurt You
Do you know what your credit score is or how its measured? Didn't think so.
You might assume its 'good' or 'average', but most people have no idea.
Things like missed payments on credit cards, loans, defaults or previous bankruptcies are the common things that impact.
But lesser known things include applying for balance transfers too often or forgetting to update your contact details.
Why It Can Be a Big Problem
A lower credit score can negatively impact your interest rate. People with lower credit scores may pay up to 15% interest while someone with an excellent credit score pays as low as 7%.
This also impacts how much you can borrow & which lenders will service you. Someone with a poor credit score may only borrow up to $40,000. This can seriously impact the type of car you want to buy.
This means you may think you are getting a certain car but there's no way you can borrow enough. Getting your hopes & dreams up all for nothing.
It's better to find out early in the process your credit score & see if you can get pre-approved for finance!
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