Finding the best car loans for your specific financing preferences can take a good while – and this is time that you may not afford to spend against an offered deadline. Whether it’s for a vintage luxury car or a badly needed SUV, limited-time offers on vehicles are a hot commodity in the automotive market, and you don’t want to miss out.
Here are a few points to take note of that will help cut the search for vehicle loans down considerably.
To answer this question, we should first talk about what makes bank loans distinct from other types of loans for cars.
Bank loans are typically offered either as secured personal loans or mortgages. Banks also typically make loan applications easier for people who already have accounts or credit lines with their institution, which is a benefit when borrowers intend to take out large loans.
While bank loans offer unique advantages to borrowers, such as competitive car loan APR or lower ongoing fees, they may also be difficult to obtain because of their stringent eligibility requirements.
This is where lending platforms and car loan financing companies come in. They offer similar loan products to banks but with less prohibitively exhaustive requirements for borrowers to meet. Many credit providers also specialise in market niches, like renovation loans, auto finance, or short-term personal loans for bad credit.
Depending on the auto loan deal you need, you may have a better time taking on a loan from auto loan providers than from banks. With the sheer number of options to choose from, however, finding the best car loans for your financial needs may take some time.
CarClarity’s innovative smart technology makes car loan comparisons a smoother process.
With CarClarity’s smart tech, customers can preview the best car loans from over forty car loan financing partners that match each customer’s unique circumstances. Just complete the application form on our website, and our smart tech will do the heavy lifting for you.
It’s always a good habit to independently research comparison rates and ongoing fees on vehicle credit products. When you compare car loans between auto loan providers, you get a better picture of how much you can expect to pay throughout each car loan.
The two common types of loans that many car loan providers offer are unsecured loans and secured loans. Their main difference is the collateral requirement.
Secured loans require borrowers to pledge valuable assets to secure the loans. Such assets include stocks, bank bonds, real estate, and personal vehicles. This type of loan is most common with bank credit and for moderate- to high-risk credit offerings from financing companies.
Meanwhile, unsecured finance for a car loan will not require collateral. This is the most common type of personal loan and includes payday loans, BNPL consumer debt, and some vehicle loans. There are also unsecured personal car loan options. They typically have a lower credit rating requirement which makes them the best car loans for first-time borrowers, though it’s always best to speak with your chosen auto loan provider regarding the details first.
Many vehicle credit providers offer both types of loans, each with unique criteria and documentary requirements, though some requirements (such as proof of identification and residence) are the same across all providers.
One such requirement is the credit check. Auto loan providers may perform one of two checks: a soft call or a hard call. Soft checks don’t affect your credit score, while hard checks likely will if several such checks are done on your credit report within a short period.
Secured car loan options are protected from defaults through asset pledges. When you apply for a secured loan, financing platforms or auto loan providers will require proof of ownership of valuable assets, typically material ones like real estate or cars, or financial ones like bank bonds or business investments. This type of credit is generally one of the best car loans for borrowers with strong profiles, as they get more bargaining power through them.
There’s not a fixed standard for secured car loans, however, and each lender or financing company will have application conditions different from others.
Our car loan financing partners are from all over the country, including Perth, Melbourne, and Sydney. Check with us from time to time and find the new best car loan offers from our partners that you can choose from.
By matching your preferences against over a thousand car loan options from our partners, CarClarity gets you pre-qualified for the top-matched vehicle loans we show you. From there, you can choose or compare car loan offers that are closest to your requirements and finish the application process with our partner if you so choose.
If you decide not to commit to a car loan just yet, don’t worry – you’re not obligated to commit to any of these quotes, and you won’t be charged for using the search service.
CarClarity can also help organise direct financing for private sales through individual sellers or dealers for amounts ranging from $5,000 up to $250,000. Get in touch with our car loan experts and ask about qualifying for such financing – our team are more than happy to help.
Finding the best car finance deals and lowest auto loan interest rates from over forty vehicle-specific lending partners is now more streamlined and seamless with CarClarity.
Take advantage of our pioneering car loan matching engine. Find the best car loans from our partners today!
CarClarity is an online financial comparison service and is owned and operated by CarClarity ACL Pty Ltd ABN 50 606 243 243 / ACN 606 243 243 and Australian Credit License 478 874.
CarClarity provides you access to our expert team who can assist in selecting suitable car loans from our panel of 40+ lenders and over 1000 financial services products. The financial products compared on this website do not necessarily compare all features that may be relevant to you and CarClarity does not compare all rates in market.
All applications are subject to the credit provider’s credit assessment and loan eligibility criteria. Terms, conditions, fees and charges apply. Information provided is factual information only, and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser. CarClarity may receive a commission from lenders we recommend.
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