Five Ways to Improve Your Chances to Qualify for Personal Car Loans

Unless you are in a very fortunate position, it is likely that you are going to need some type of personal car loans. However, with the range of car loans, Australia based finance companies can offer, it may still be difficult to qualify if you have a less than a perfect credit history. Fortunately, it is possible to improve your chances of qualification. Here are five of the best ways.

Prepare Your Monthly Budget:

In order to qualify for personal car loans, it is important to be realistic. This means that you will need to prepare a monthly budget. Preparing a budget need not be overwhelming and is simply a matter of adding up your income and deducting all of your typical expenses. The difference in these amounts will illustrate your surplus income and how much you can afford for your car loan. 

Determine Realistic Qualifications:

Most lenders have particular criteria for borrows to qualify for personal car loans. Typically borrowers will be limited to 20% of net monthly pay. In order to improve the chances of qualifying, it is a good idea to determine what the realistic criteria is. Of course, since you have already prepared your monthly budget, you will be aware of exactly how much you can afford and will be able to determine if this is realistic for your chosen loan.

Choose the Right Vehicle:

Of course, while many of us would love a sports car to drive around Perth, car loans can be dependant on whether you have selected the right vehicle. Many lenders will look more favourably on applications for practical choices. However, there are lenders offering personal car loans regardless of your choice of vehicle. You may find that lenders charge a premium for lending to purchase higher risk vehicles. In most cases, your insurance will provide sufficient protection for the lender, so many lenders will require some evidence that the vehicle is totally covered.

Arrange a Down Payment:

Another important way to improve your chances of qualifying for personal car loans is to arrange a down payment. A down payment is a great way to demonstrate to potential lenders that you are financially responsible and have a financial interest in the transaction. While there are some specialist lenders who will offer loans to those with less than a perfect credit history and no down payment, by offering even a small down payment, you can dramatically improve your chances of being approved.

Research Your Options:

Many people looking to buy a new car will automatically use the dealership finance. However, this can be a costly mistake. You can improve your chances of qualification and getting a great deal by conducting a little research. Although it is possible to get online quotes and phone lenders, it can save a great deal of time to speak to a specialist broker. A broker can use your information to compare the best deals available to you. This could even include exclusive deals or lenders who have less rigid qualification criteria, if your credit history is less than perfect.

If you are looking for a great deal on personal car loans, contact us. We are a specialist broker and our team of advisors would be delighted to assist you.