Motor Vehicle Finance
You have done the research and have found your dream car, now comes the challenge of finding the right motor vehicle finance!
Often in this situation it is tempting to jump online, make a few phone calls, find what looks like a great rate and quickly arrange the motor vehicle finance. After all you want to get behind the wheel of your new car as quickly as possible!
However, just as is the case when buying a motor vehicle, if you don’t do your research and understand all the available options – it can lead to disappointment and regret!
Importantly, it can also be expensive!
Beware the interest rate trap!
A common mistake many make when arranging Motor Vehicle Finance is to focus on the interest rate – rather than the total cost of finance over the term of the finance or lease!
What appears to be a great rate, may in fact mask a higher overall cost of finance – this could be due to:
- The lower interest rate being compensated by a higher purchase price –(0% interest doesn’t exist!)
- The build date of the vehicle being the previous year (which affects the resale value)
- A higher end residual or balloon payment
- Expensive extras being added to the purchase price which will hold little value when you come to sell the vehicle
- Additional fees and charges being used to compensate for the lower rate on offer
To ensure the motor vehicle finance is in fact competitive, you need to:
- Multiply the payments over the term of the facility
- Add any additional fees and charges
- Add any residual or balloon payment
This simple process ensures you will be comparing “apples with apples” and avoid later remorse!
Our experienced Motor Vehicle Finance Specialist at The 500 Group, can help you avoid the interest rate trap!
Choosing the right finance option!
When financing the purchase of your motor vehicle, to avoid costly mistakes it is important to choose the right finance option – which could be:
- Chattel Mortgage – Where customer takes ownership of the vehicle
- Commercial Hire Purchase – The customer hires the vehicle from the financier for a fixed monthly payment.
- Novated Lease – A 3-way agreement between you, your employer and a finance company that allows you to pay them using pre-tax dollars
To help you avoid costly mistakes and later regret, our Motor Vehicle Finance Specialist can assist you to work through the options and choose the best structure for your individual circumstances.
Get the finance you need – fast!
We understand when you have decided which car to buy you want it yesterday! But undertaking research, comparing offers, terms and conditions can be very time consuming.
At The 500 Group we have access to a panel of Financiers – which includes the major Banks and can get you highly competitive quotes and structures – fast!
We do the research and all the leg work – to get you behind the wheel of your new vehicle as quickly as possible!
Motor Vehicle Fleets
If you’re buying a car for business purposes, the team at The 500 Group can help you work through all available options. We’ll consider every part of the package – your cash-flow, business structure and individual tax considerations.
Car Buying Service
If you are extremely busy, or don’t like negotiating with car sales people, The 500 Group can introduce you to a National Car Buying Service that can source both new and used cars.
Once we have a good idea of what you’re looking for, the Car Buying Service will contact multiple dealers to negotiate the best possible price, assist with trade-in (if required) and then, deliver the car to your door.
The service is provided at no cost to you, as the Buying Service is paid a referral fee by the dealership that ultimately provides you with the car.
When the vehicle has been identified and price agreed, The 500 Group will handle the finance, documentation and if needed, insurance, to get you on the road as soon as possible.
Using a Car Buying Professional, in conjunction with The 500 Group, can make buying a car easy! You buy at a great price and enjoy peace of mind knowing you have a competitive finance package!
Summary
Buying a new motor vehicle for many people is an exciting event – our cars can say a bit about who we are!
However, whilst quick access to finance is important, falling into the headline interest rate trap, or choosing the wrong finance structure, can be expensive!
If you are looking for highly competitive Motor Vehicle Finance, tailored to your individual circumstances – fast – then give our Motor Vehicle Finance Specialist, Sharon Piening, a call to day on 0433 210 353
It is our experience and network that makes the difference!
