As a student, owning a car could be like a dream come true, but still a dream. But, what if I tell you that you can secure a car loan and buy your own car?
Well, as long as you meet the eligibility criteria of the lender, you can secure a car loan, no matter what. For instance, if you are a citizen of Australia, have a regular source of income and are above 18 years of age, then you are very likely to receive a car loan.
That being said, it is still not as easy as it seems. To put this into perspective, you should know that if you are a foreign immigrant on a study visa, the likelihoods of receiving a car loan are no longer bright. Likewise, if you sustain any allowances or Austudy, you might not get a car loan.
But, still, it is better to consult with the lender directly, as they may have other criteria in place.
Let’s say you are eligible for a car loan, but you still need to know which plan is better for you. After all, not every lender would offer you the same plan neither would it have the same effect on your monthly budget.
So, it is rather wiser to know more about the underlying terms of a car loan, and how you can find the best plan for you.
The very first thing that you ought to do is compare the rates of interest. It is noteworthy, as the experts at https://www.plenti.com.au/ say, that you should compare a flexible rate of interest with a fixed one. This could help you save more in what you pay back to the lender, eventually.
Another thing that you must compare when searching for a car loan is the term of the loan. Usually, a car loan may extend anywhere between 2 years to 5 or 7 years, depending upon the amount of loan. And it is pretty obvious that the longer the term, the more the liability.
By now, you must have already had an idea why you must be comparing the interest rates and term of the loan. But, there are other factors involved as well. For example, if you’re buying a used car, the loan terms would be different as compared to the loan for a new car. Besides, there would also be processing fees and other charges involved. So, before you take out any plan it is better to know how much you pay back in the end.
Several lenders offer value-added benefits to their customers. For example, some may offer you a credit card based on your existing loan, while others may offer you redeemable points. When taking out a car loan, comparing these benefits is as important as any other comparison. After all, who doesn’t like to enjoy free perks?
In short, being a student is not devoid of the benefits of a car loan. But you must ensure your eligibility before anything else. Only then can you get a car loan and own a car in Australia.