Arranging Car Finance – Whats involved?
Posted on January 28, 2009, under About Me.
Our aim in this guide is to give you a better understanding of the car finance process and what is required to arrange car finance.
In this guide we will discuss:
1. How to enquire
2. Obtain quotes and compare
3. Submit an application form
4. Finding a car
5. Settlement
1. How to enquire
The easiest way to submit a car finance enquiry is through an online car finance broker. Submitting enquiries online allows you to make contact with several companies without consuming too much of your time. Generally, an online lender will have a user-friendly car finance enquiry form that will ask 5-10 general questions about yourself. Once you have put your enquiry through, a car finance broker will call to discuss your options and generally they will be able to provide you with an answer and a quote on the spot. When discussing a quote make sure to ask questions about ongoing fees, establishment fees and early exit fees, as these fees on top of repayments are very important to compare.
2. Obtain quotes and compare
Once you have had a brief discussion with the car finance consultant and have established what your repayment will be and any other fees involved with the product, it’s now time to compare. When comparing car finance products, you must look at interest rates, fees & charges, payout penalties, retained interest, comparison rates, monthly repayments and good service from a trusted broker that gives you good advice.
3. Submit an application form
Once you have completed all your due diligence and have settled on a quote and, thus are ready to proceed, it’s now time to submit the application. Online processes of submission vary. Submission usually occurs through an online application form on the company’s website, over the phone or a hard copy is sent via e-mail, which then gets returned either by e-mail, fax or post. The process will be explained to you by your car finance consultant when it comes time for you to submit.
4. Finding a car
After submission of your application form, your car finance is approved. It is now time to go and find a car if you haven’t already. If you have, then fantastic, all that we will need is the contract of sale, tax invoice and dealer deposit slip from the car dealership (this will generally be organised by the car finance broker if you provide them with the car dealer’s contact details). If you haven’t found a car, well then now the fun begins!
Finding a car should be dealt with in the same manner as organising car finance:
1. Enquire
2. Compare
3. Purchase
Put your feelers out there. Ring as many car dealerships as possible, and see if they have the vehicle you want, and at what price. Search on the internet as well as this can save you lots of time and it provides you with all the information required to compare vehicles.
5. Settlement
After finding a car, it’s now time to take care of all final documentation for settlement. What a car finance broker will request to finalise the facility is:
1. Contract of sale from car dealer
2. Tax Invoice from car dealer
3. Supporting documentation outstanding (eg payslip, tax return, drivers licence)
4. Insurance policy (Certificate of currency)
5. Loan Documents signed
Once these documents have been returned to your car finance broker, they will settle the car finance within 24 hours, enabling you to then start driving in your new car.
