What You Need to Know About Your Car Loan Refinance

Refinancing your car loan can be daunting business, and it’s hard to get trusted advice on your options and how it will affect you. Before you refinance car loans, read our industry wide advice on what you need to know in Australia to ensure you’re getting the best possible deal, so that you’re benefiting from the record low interest rates as much as you can.

When you refinance, you are essentially replacing your current loan for another one, therefore paying off the initial loan with a loan of better value for you. This may be because you wish to lower your monthly payments, or reduce your interest rate. Refinancing can also be a viable alternative to make changes to your loan term, giving you a new loan where you can amend the term of your loan, or to add or remove a co-signer with the commencement of a new contract.

To put it in real life, imagine buying a car one year ago for $10,000. You have a 48 month repayment term, at 6% interest. However, you are now hoping to reduce your monthly payments, so you approach a lender who can pay off your loan for you under the premise of a new loan with them. This lender can see some serious improvements in your credit score, and offers you a loan term of 48 months, at half your current interest rate, 3%.Now, your loan has been spread out over another 48 months on top of your 12 months, giving you a total term of 60 months. 

Your new loan will pay out your old lender, then give you another two years at a lower interest rate, overall saving you money as you are paying off a smaller sum with a lower interest rate.

Even if your monthly payments don’t drastically change, by taking the remainder of your loan into a refinance option and selecting a shorter term, you’ll be saving money with the lowered interest. 

While your current monthly rate may sound reasonable, when the total sums are put side by side you may start getting that ache in your back pocket.

Refinancing your car loan is a lot more straightforward than refinancing your mortgage, and is a great option for people in a few different scenarios. For example, if interest rates have dropped since purchasing your vehicle, even by only a few percentages, you could save a large sum of money over the lifetime of your loan. Likewise, if your credit score has improved and you are a more reputable customer, your lender may be able to move you into a lower interest rate for your refinance option, so you should check your score before inquiring about refinancing.

Refinancing is a case-by-case alternative, and should be treated with caution if the new loan comes bundled with fees that would detract from your savings. Likewise, make sure that your refinancing option will trim down your repayment term. Unless you are genuinely concerned about upcoming payments, avoid refinancing into an option with extends your overall loan.

Auto-refinancing is quick and easy, so talk to your lender about an option for you. At Allcredit, we work alongside people from across Australia to find the best refinance car loan for their needs and budgets. Our friendly staff can find you an alternative to save you money, and get your car loan off your back in record time.

Fantastic Used Car Finance Rates To Make The Car Seem Brand New

From Melbourne to Broome, our used car finance options are the most competitive around, and a used car is often just as reliable as a car fresh off the conveyor belt. We all love that new car smell, and the luxury of reclining in a vehicle that feels like it was made especially for you, so when you get your used car keep these tips handy -our guide to making your car seem brand new will make the morning commute that much more comfortable.

Spring Clean:

I don’t mean give the mat a shake out, and throw out your wrappers from last week. I mean, get some elbow grease into it and get every piece of dirt and dust out of your car. Take out all the rubbish and receipts, vacuum and shampoo the upholstery and mats, and get into all the crevasses in the boot where trash and dust gathers. Remember all the times you lost corn chips down the side of your seat? It’s time for a rubbish reconnaissance mission. Take your seat cushions out and do a vigorous clean, then attack the engine bay and dash, getting all the dust and coffee spills. 

A professional clean is an alternative, but a solid afternoons work can make a huge difference. And, of course, cast an eye over the exterior and get rid of all the dirt, rust, damage and scratches that you can. Start with an extensive scrub up, then see what level of damage you’d like to deal with. There are some simple ways to cover scratches and paint chips from your local auto store, but dents and panel damage will probably need some repair from a panelbeater.

Sit in the drivers seat, and examine your dash and steering wheel. With the grime gone, look for any superficial damage you can upgrade quickly an easily, such as a steering wheel cover, some quality seat foam (which you can often find cheap second hand), seat covers, and dashboard covers. Ensure all the dash lights are fully functioning, as they can dim over time. Your headlights can do the same, so you may like to head the headlights restored and shining bright. Windscreen wipers and door seals can wear, proving inefficient in the rain and letting the cold air in.

Easy Maintenance:
Flush all your fluids to give your car a new lease on life. From your power steering, to your brake fluid, your oil and your antifreeze, these will all result in a smoother engine and add to a like-new driving experience.

Your wheels may be unaligned, or damaged from a lifetime of unchecked thrashing. These will be taking away from your cars performance, so look for wheels that need replacing. You won’t believe just how much this can affect your quality and control over your drive, and keeps your car safe on the roads. While some of us procrastinate between services, a tune up and quick solution to any engine damage is crucial to keeping your car like-new.

You can buy a car air freshener, but a great way to keep the car from smelling stale is to deodorize your air conditioning. There are simple ways to do this yourself, such as changing the cabin air filter, spraying it down with an air deoderizing spray, then starting the air-con. Spray a disinfectant into your air intake until you can smell the disinfectant reaching your car, so you know it is affecting the whole channel of the air-con. 

Now that you’ve got your list on how to get that used car to brand new, talk to on of our friendly loan experts about the used car finance for you. By finding a great used car you’re already picking up a bargain, so why not save even more cash easily with our competitive interest rates and flexible repayment terms?

Use Our Loan Calculator – Then See How much more Room in the Budget you have for these ideas

Our loan calculator for you next boat or car loan is a quick and easy tool to get an estimate on your repayment options, and it might show you a little extra wiggle room in the budget. While we’re a money-conscious bunch here, we know that not everybody might want to put all of that money into a savings account the way we would. But before you spent the spare change on your daily mocha grande, take a look through our top ways to make the most out of your petty cash- you’ll be surprised.

-        Sponsor a Child:
Once you get all the signing up out of the way, this is the most rewarding thing you can do with your money. For only a few dollars a day, you can ensure that a child in need is receiving the education, healthcare, and nutrition they need. This can be a child across the world, through agencies such as World Vision, or it can be a child here in Australia through The Smith Family Foundation, where over 638,000 of our own children are living in families with no source of income. 

-        Join a Gym/ Sports Club
Levels of obesity in Australia are now classed as ‘epidemic’, and is closely related to our increasingly sedentary lifestyle. Many gyms memberships will cost you less a week than your Sunday brunch, and will be ten times more beneficial in the long run. Likewise, finding a sport or hobby you love will keep you active and healthy, and is a great way to meet others in your community.

-        Online Loans
Through international companies, such as Lending Club, you can loan your leftover cash to someone who is looking forward to putting that money to use for their next venture, where you receive principal and interest for you to withdraw or reinvest.

-        Investing Investing
Investing can sound daunting, but with the right advice you can watch your money multiply before your very eyes, although this is not for the faint hearted. Make thoroughly informed decisions to ensure you see the returns, and keep an eye out for a scam.

-        Donating
Warms your heart, doesn’t it? Many of us live in comfort, with food in the pantry and fuel in the car, and a warm dry bed to nestle in to every night. However, Australia still has a serious problem with homelessness, animal cruelty, wildlife conservation and disease research- a lot of which relies heavily on your goodwill. Whether you feel strongly about the whales, your community, the forests, or the reef, there are many hugely deserving societies and groups who you could be making a difference to.

-        Shop Local Produce
The supermarkets are usually the easiest and cheapest place to purchase your goods, but with some conscious forethought you could be affecting the lives within your community by shopping locally. This may cost a little extra, whether you have to go further out of your way or pay a few extra cents for carrots, but the money goes directly towards the people growing and selling the produce, instead of getting caught up in the middle man of supermarket management.

There are so many meaningful ways to put your money to use- but make sure you use our loan repayment calculator first, before you start joining gyms and sponsoring children. The calculator will show you the kind of repayments you may be able to expect, but a quick chat to our lenders and a speedy application process will give you an exact idea of what to look forward to. Here at Allcredit, our team of experts will find the right loan for your needs and budget, with a competitive industry rate to rival any other lender

Advantages and Disadvantages of Getting a Used Car on Novated Lease

When you’re making a decision, especially involving big finance, you should always get all your pro’s and con’s established first. It’s one of life’s little rules, and it’s the reason people go on dates before getting married, or read the job contract first. I mean, sure, you might be the intrepid jump-with-both-feet type, but that’s better saved for the fun stuff, like that tattoo you got in Bali. With this in mind, we have assembled a few points for you to ponder, so when you have finalized your used car novated lease, you know that you were informed enough to make the best decision.

1         Mid-lease payouts are an understood risk of a novated lease, as while there is no immediate cost for you boss to sign off, the lender will recover all fees and interest upfront. Therefore, if you decide to terminate your lease before the full repayment term is up, this payout could be more than you’re expecting. Become aware of the terms of your lease, especially if you think this may be a possibility- for example, if you’re hoping to get a new car before then. 

2         As it is attached to your job contract, if you lose your job then the repayments come directly back to you, and you’ll be liable for completing the payments. You can talk to your new employer about taking over the novated lease agreement, but the easiest idea is to try not to lose your job.

3         All said and done, it is your car. So you don’t get to throw it back to the company once you’re done, or leave the car to be your employers problem. Although through the lease the employer is basically paying the car on your behalf, it’s still your money they’re spending. However, there are insurance options to help you out if a problem arises with your employment, and novated lease is transferrable, so you still have a bit of freedom if a problem arises.

4         At the end of the lease there is an end of lease residual, to payout and settle the lease. This is usually calculated by a percentage of the vehicles capital value, as deigned by the Australian Tax Office, and regardless of the model of car you have your eye on, the percentage is consistent throughout the term, so if the market value isn’t sufficient to cover the payout then this is your liability. On the flipside, if the residual is less than the car value, you can pick up the difference in a tax-free sum. Make sure that you understand the residual liability of your car before entering the lease agreement; the further you travel, the greater danger of a surprise shortfall, but the more potential for tax savings. This also has an opportunity to be offset through shortfall insurance.

5         All said and done, it sounds complicated, but the benefits are worth it if you play your cards right and sweet-talk the boss a bit. You can get a novated lease on a used car, or a convertible, or a family wagon. The most important part to consider is to find a lender with your best interests in mind, who can talk you through all your options. At Allcredit we are proudly Australian operated, with loan experts who can cut through the jargon and find the best deal for you, every time.