The PRWIRE Press Releases https:// 2015-07-03T00:09:38Z Guide To Loan Pre Approval 2015-07-03T00:09:38Z guide-to-loan-pre-approval Getting pre approved for a loan before you commit to buying your new car, motorbike etc. is an increasingly popular way to organise your finances. But how do you organise a loan pre approval and what are the advantages of arranging your financing in advance? To help you decide whether it's right for you here's our complete Guide to Loan Pre Approval. At www.LoanPlace.com.au you can use our Information Resources and Free Quote Service to find the very best Car Finance deals for your individual circumstances. What is a Loan Pre Approval? A loan pre approval means that you have an agreement with a lender that they will provide you with a loan for an agreed amount for an agreed purpose in advance of you making a purchase. So instead of finding a car, for example and then seeing if you can obtain a loan for it you already have the loan facility in place before you go shopping.   Why Get Pre Approved? There are a number of advantages to getting your loan organised in advance. Here's some of the main reasons why getting pre approved can benefit you:    1. Better Planning & Preparation - You have time to consider your requirements and shop around without being rushed into making a decision. 2. Effective Budgeting – You can determine your budget in advance and stick to it. By pre arranging your loan based on how much you want to spend you remove the chance of making impulse buys and spending more than you can afford. 3. Improved Negotiating Position – When your finances are already in place you put yourself in a stronger negotiating position. You're not relying on the seller (e.g. car dealer) to organise the financing for you. Also, If they can’t get the price to fit within your pre arranged budget you walk away and shop elsewhere. It’s amazing what can happen once the seller realises that your serious about your best offer! 4. The Power of Cash - For all intents and purposes you are a cash buyer. Your money is organised and you're ready to go. This makes you a serious buyer in the eyes of the seller. Once they know that you're in a position to buy today the chances are you'll get their undivided attention! 5. Quick Response - With your loan already organised you can move quickly when you find what you want, which means that you don't lose out to another buyer due to the time that it would take to organise your finance. 6. Greater Choice – Compare a range of different banks and finance companies in advance so you can see what's available and get the best deal for your individual circumstances.   How do you Organise a Loan Pre Approval? These days many banks and finance companies can organise a pre approval for you if you approach them directly. However, more and more people are now working with Qualified Finance Brokers to arrange a loan pre approval. That way you can deal with an expert who searches the market for the best deals, negotiates with lenders on your behalf and handles the application process for you.   Find the Best Loan Pre Approval Deals Using the tools and resources at www.LoanPlace.com.au and working with a Qualified Finance Broker can help you to find the very best Loan Pre Approval deals for your individual circumstances. Loan vs Lease 2015-06-26T03:50:50Z loan-vs-lease Do you want to know the differences between a loan and a lease? Are you wondering what's the best way to finance your next car purchase? Our Loan vs Lease analysis will help you to understand the pros and cons of each method so you can decide what's best for you. At www.LoanPlace.com.au you can use our Information Resources and Free Quote Service to find the very best Car Finance deals for your individual circumstances. How Does A Car Loan Work? A car loan allows someone to borrow the money to buy a car. Car loans are usually secured, which means that the lender (e.g. bank, finance company) uses the car as collateral and registers an interest (also known as an encumbrance) to show others that they are using it as security for the loan. If the car loan is unsecured then the lender does not use the car as security. The Key Benefits Of A Car Loan: Equity – Loans can be much more effective for building equity, which means that once you've paid the loan you have value in the car. Additional payments – Generally, loans give you more flexibility to make additional payments and pay off early. Multi-purpose – With an unsecured loan you can use the loan amount for more than one purpose, for example part of the loan could be used for a car and part could be used to pay off a credit card balance. Financing minus equity - if you are trading in an car which is already financed and you owe more on this loan than the car is worth you may be able to include this minus equity amount in with the new loan for the car that you’re buying. Potential tax benefits* – If you are using the car for business purposes there are various tax benefits potentially available to you in relation to the interest charges that you pay. How Does A Car Lease Work? A lease allows someone to use a car for a given period in return for rental payments. The user of the car does not own the car. The Key Benefits Of A Car Lease: Low Repayments – By financing the GST exclusive price and including a residual value (balloon payment), which offsets an amount until the end of the lease term this can reduce your repayment and frees up more of your cash. Low Deposit – You can get the car that you want with $0 or minimal deposit, so you don't need to tie your cash up in the vehicle. Change Car More Often - By making repayments on a lower amount leasing can give you the option of a shorter payment term so you can change and update your car more often Effective Budgeting - With a maintained lease you can opt to include all scheduled servicing, fuel and maintenance costs, such as registration renewal and replacement tyres within your lease. This means that one repayment covers all of your main running costs enabling you to budget more effectively. Potential tax benefits* – If you are using the car for business purposes there are various tax benefits potentially available to you in relation to the lease payments that you pay. Pay from pre-tax income* – With a novated lease you can pay your lease and maintenance costs out of your pre-tax income and potentially benefit from the tax advantages associated with this.  Find the Best Car Finance Deals No matter whether you decide that a loan or a lease is the best option for you then using the tools and resources at www.LoanPlace.com.au and working with a Qualified Finance Broker can help you to find the very best deals for your individual circumstances. *We strongly recommend that you consult your accountant or tax advisor to confirm the tax benefits available to you prior to entering into any finance agreement. The information provided is not intended to be used as taxation, financial or legal advice. Borrow Or Pay Cash? 2015-06-12T00:51:45Z borrow-or-pay-cash-1 Thinking about buying a car? Got the cash sat in the bank to pay for it but not sure whether to use it to buy a car? Wondering whether to save for your next car or take out a loan? You may find the answers that you're looking for in our Borrowing vs. Cash Analysis. There's no right or wrong answer, it really depends on your circumstances. At www.LoanPlace.com.au you can use our information resources and tools to find the best Car Loan for your circumstances. This guide will help you to understand the pros and cons of borrowing and using your own cash so you can choose the best option for you. The Advantages Of Borrowing Buy Now & Use Now – Borrowing can enable you to have the car that you want or need now and have all the usage benefits instead of having to wait to save to accumulate enough cash to purchase it outright. Buy At Today's Prices – Borrowing enables you to buy at today’s prices. If you need to save over a prolonged period of time car prices may well rise due to inflation and other factors which would mean you having to pay more. Don’t Lose Investment Returns – If you use your own cash then you need to consider the return that you lose when you withdraw your cash from where it’s invested and use it to buy an asset. Often the interest you pay to borrow compared to the compound interest that you’d generate by keeping the cash invested is minimal. Establish A Credit History - if you haven't borrowed before, starting with a car loan can be a great way to establish a credit history which can help you to secure loans down the track when you need them.  Flexible Deposits - most mainstream car loan providers have a minimum loan amount of around $5,000. This means that you can set up a loan which allows you to use cash as part payment and a loan for the remainder. Shop Like A Cash Buyer – With pre-approved finance you can shop around for the best car price and negotiate with sellers with your money already pre-arranged. Potential Additional Protection – There can be additional protection available if you use finance that uses the asset as security. If you have issues with the quality of the asset you may be able to get some assistance from the lender in the event of a dispute with the supplier. Potential Tax Benefits* – If you are using the asset for business purposes there are various tax benefits potentially available to you in relation to the interest charges that you pay.   The Advantages Of Cash No Interest Or Fees – When you use your own cash there’s $0 interest or fees to pay. Complete Ownership – Unlike with some types of finance where ownership of the asset is transferred to you after the final payment is made and where there is the possibility of repossession if you miss payments when you buy with cash the asset is yours from day one. Easy Re-Sale – If you want to sell the asset it’s a simple process as you don’t need to worry about having to organise for any outstanding finance to be paid out. Strong Negotiating Position – With your funds already in place you’re in a position to buy immediately which can put you in a strong bargaining position with the seller.   Find the Best Car Loan Deals If you decide that borrowing is the best option for you then using the tools and resources at www.LoanPlace.com.au and working with a Qualified Finance Broker can help you to find the very best Car Loan deals for your individual circumstances. *We strongly recommend that you consult your accountant or tax advisor to confirm the tax benefits available to you prior to entering into any finance agreement.  The information provided is not intended to be used as taxation, financial or legal advice. Car Loan Refinance Guide 2015-06-04T07:28:19Z car-loan-refinance-guide With interest rates dropping to record lows it's not surprising that many people are looking at their finances and considering if they can find better deals. But what does refinancing your car loan actually involve and what are the pros and cons?  At www.LoanPlace.com.au you can use our Information Resources and Free Quote Service to find the very best Car Loan Refinance deals for your individual circumstances. Here's our complete guide to Car Loan Refinancing: What is Refinancing? Simply put refinancing involves taking out a new loan to pay off the existing loan.  How does Refinancing work? Refinancing works by replacing the loan that is currently attached to your car, whether you replace the loan with another loan from the same lender or more commonly with a loan from a different lender. Why Refinance? Your circumstances or the market conditions may have changed since you took your loan out and you may feel that there are better deals out there for you. The main reasons to consider refinancing your car loan include: 1. Lower Interest Rates - take advantage of a lower interest rate to help you save money on the amount of interest payable over the term of the car loan. 2. Lower Repayments - reduce your car loan repayments. 3. More Flexibility - gain additional features, such as the ability to make additional payments towards your car loan. 4. Longer Loan Term - extend the term of your car loan beyond the period that you initially took the loan out over. 5. Loan Security - change from an unsecured or secured car loan. 6. Type of Loan - change the type of car loan that you have to reflect your current circumstances. For example, you may have originally taken the loan out as a business loan when you were self-employed but you're now employed and want a consumer loan or you may have taken out a novated lease but have changed jobs and your new employer doesn't offer salary sacrifice arrangements. 7. Credit History - get a better, more flexible car loan once you have established an improved credit rating. 8. Variable Interest Rate - switch to a fixed rate to ensure that you have a fixed monthly car loan repayment and more effective budgeting.  9. Unhappy with Lender - transfer to a lender that provides you with better service. Things to Consider Fees - Exiting your current car loan early will usually mean that you incur some early termination fees from the lender. In addition, arranging a new car loan will normally involve some set up fees. You'll need to understand how much these fees are and factor them into your calculations to help you determine whether refinancing is a good option for you. Interest - If you plan to refinance your car loan over a longer period than is remaining on your current loan this may result in you paying more interest in total even if you switch to a loan with a lower interest rate. Range of Lenders - not all banks and finance companies are prepared to refinance a loan from another lender. Some lenders will flatly refuse to refinance, whilst others will judge applications on a case by case basis.  Top Tips 1. Try and keep the new car loan term as close as possible to the remaining term on your original loan. This way you will avoid falling into the trap of paying additional interest charges. 2. Refinance to a car loan that allows you to pay additional payments. Paying extra towards your loan when you can will result in you paying your loan off more quickly and reducing the total amount of interest payable. 3. If you're refinancing to reduce your car loan interest rate make sure that the rate difference is substantial. The benefit of refinancing for the sake of 1-2% on a typical car loan could easily be eaten up by the fees that you have to pay to exit the original loan and set up a new loan. 4. Use a Finance Broker. Access a wide range of Banks and Finance Companies through one point of contact and use the Broker’s experience of different lender’s requirements to find the best refinancing solution for you. Find the Best Car Loan Refinance Deals Using the Tools and Resources at www.LoanPlace.com.au and working with a Qualified Finance Broker can help you to find the very best Car Loan Refinance deals for your individual circumstances. 5 Key Factors To Consider When Looking For Motorbike Loans 2015-05-27T05:44:53Z 5-key-factors-to-consider-when-looking-for-motorbike-loans There’s plenty to think about when choosing a motorbike loan. To make sure that you get the best loan for your individual circumstances here’s my checklist of the 5 Key Factors To Consider When Looking For Motorbike Loans. At www.loanplace.com.au you can use our Information Resources and Free Quote Service to find the very Best Motorbike Loan for your circumstances. 1. Interest Rates Rates are the main yardstick that people use when comparing loans. I prefer to think of them as being like a headline in a newspaper. They grab your attention but don’t necessarily tell you the entire story. The interest rate is going to play a big part in determining the cost of your loan so it’s a good place to start but don’t fall into the trap of thinking that the rate is the only element to consider. 2. Fees Fees are another factor that will directly impact on your cost of borrowing. They’re not displayed as prominently as interest rates but you need to find out what fees apply and how much they are before proceeding with a loan. Beware of being lured in by attractive headline rates only to find out that the deal involves high set up and ongoing account keeping fees. 3. Loan Security Most loans involve the lender using the motorbike that you buy as security. In other words, the bank or finance company have some rights over the motorbike which could potentially allow them to repossess it if you were to break your agreement and miss your loan repayments. When it comes to selling or trading in your motorbike a secured type loan needs to be paid off in full before the sale can be finalised. If you want the flexibility of an unsecured loan expect to pay a higher rate for the privilege. 4. Loan Inclusions Make sure to check that the loan will cover everything that you want it to. Most Banks and Finance Companies will limit how much they lend against the value of the motorbike. So if you’re planning on including apparel and accessories or maybe the cost of an extended warranty in the loan, check out whether the lender will be prepared to include this for you. Otherwise you could be left with an unexpected bill to pay! 5. Early Termination If you think that you may want to occasionally pay extra off your loan or if you’re planning to pay the loan off early with a lump sum, make sure to check beforehand that your loan allows you to do this. If your loan does provide this flexibility check out if there are there any costs associated with it. Find the Best Motorbike Loans Using the tools and resources at LoanPlace.com.au and working with a Qualified Finance Broker can help you to find the very best motorbike loans for your individual circumstances. Top 5 Tips On How to Get the Best Car Loan Rates 2015-05-20T00:40:02Z top-5-tips-on-how-to-get-the-best-car-loan-rates The interest rate that you get on your car loan will prove to be a major factor in the overall cost of the loan. Whilst it’s not the only thing you should consider when researching car loans it’s certainly a good starting point. At http://www.LoanPlace.com.au you can use our information resources and tools to find the Best Car Loan Rate for your individual circumstances. Here’s my Top 5 Tips On How to Get the Best Car Loan Rates: 1. Research & Shop Around Whatever you do make sure you don’t just go to straight to your Bank or Credit Union or just accept what you are offered by the Car Dealer. Do your research and compare quotes from several alternative lenders. Spending a little bit of time shopping around now could save you lots of money and headaches over the term of your car loan! 2. Know Your Credit History It’s very useful to have a good understanding of your previous credit history. Remember that your credit history and what gets reported to credit agencies isn’t just about previous car loans, but includes things like telephone and utility bills as well as credit cards etc. Lenders want to know about your previous borrowings and will reward you for good payment history, which opens the door to lower car loan rates. Equally, poor credit history will work against you. Proving that you have resolved previous credit issues and being able to explain why you experienced problems can help your cause. It may be worth obtaining a copy of your credit report to find out what’s in it before you apply for a car loan. You can do this by contacting the credit agencies:  www.veda.com.au, www.checkyourcredit.com.au, www.experian.com.au, www.tascol.com.au. 3. Avoid Multiple Loan Applications By viewing your credit report lenders can also see some information about your applications for credit. They can get suspicious when they see applications on your report that don’t result in credit agreements. It can appear like you have applied for credit and been refused, which makes lenders nervous. After all if it looks like others didn’t approve you for credit why should they offer you a car loan at their best rates? By all means search various different lenders and get quotes but make sure to only apply when you’ve found what’s right for you. 4. Keep the Car & Loan Transactions Separate By looking at your loan and car purchase as two separate transactions you can often get a clearer picture about the actual deals that you are being offered.  Things can get confusing when they are rolled up into an overall package. If that’s the way that you ultimately want to go that’s fine but when looking at the car loan make sure that you understand exactly what you are getting into. 5. Get a Pre-Approval By getting a Pre-Approved loan you can arrange your car loan in advance before you agree to buy a car. That way you can budget and make a decision about the loan in the cold light of day. It’s amazing what you’ll agree to when you’ve just bought a car and your heart is racing with excitement. Sometimes rationality and common sense get lost in those circumstances! Get the Best Car Loan Rate Using the tools and resources at LoanPlace.com.au and working with a Qualified Finance Broker can help you to find the very best car loan rate for your individual circumstances. Bad Credit Car Loans - Your Questions Answered 2015-05-13T02:05:35Z bad-credit-car-loans-your-questions-answered Let's not tip toe around it, if you only qualify for a Bad Credit Car Loan it's not ideal. You'll pay more and you'll have less choice and flexibility but it doesn't mean that you have to get ripped off and it doesn't mean that you can't make it work for you. Here's your chance to get the straight talking information that you've been looking for. What is a Bad Credit Car Loan? Also Known As - Poor Credit Car Loans, Second Chance Car Loans, Adverse Credit Car Loans, Problem Credit Car Loans and Sub Prime Car Loans. Credit History Problems - The term 'Bad Credit Car Loan' refers to the type of loan available to people with credit history problems. Credit history problems include issues from the past 7 years such as; defaults, utility bill or loan payments which are 60 days or more overdue, debt collection actions, and debt agreements, which include, bankruptcies, court judgements, debt agreements, and personal insolvency agreements. Don't Qualify for Standard Loans - If you have encountered any of the above issues over the past 7 years it may well have an impact on your ability to get a loan or other credit facilities. If your problems are deemed serious enough then it's unlikely that you'll qualify for a standard loan from one of the mainstream lenders. In all likelihood you'll have to consider what the finance industry refers to as a Bad Credit Car Loan. The name is hardly a marketing man's dream but it's what these loans have become commonly known as. How do Bad Credit Car Loans Work? How a Bad Credit Car Loan is Different - For all intents and purposes a Bad Credit Car Loan is pretty much the same as any other loan. It will enable you to buy a car but the loan features are generally more restrictive than a standard type loan. The biggest restriction is the interest rate. If you only qualify for a Bad Credit Car Loan then you're going to have to pay a higher interest rate. How high will depend on the lender and how bad your previous (or current) credit history problems are. Because people with credit history problems are regarded by banks and finance companies as a higher risk they increase the interest rates that they charge to cover for anticipated losses. Fair or unfair, that's the reality. In saying that if you need a car, a Bad Credit Car Loan is still likely to be a more cost and time effective option than relying on public transport for example. The term of the loan available may be shorter. You're probably looking at more like 4 or 5 years maximum as opposed to 6 or 7 years. Deposits are sometimes required and it may be more difficult to include extras like accessories, extended warranties and insurance products within your loan. Required Preparation - With a Bad Credit Car Loan you'll often be required to provide explanations of why you experienced credit problems. You may even be asked to provide evidence that you have now paid off what you owed. Because your track record may not be the best you may also be required to provide bank statements that confirm your income and outgoings and show that you can a) afford the loan and b) budget effectively and live within your means. How to Get the Best Deal on a Bad Credit Car Loan? Take Corrective Action - Wherever possible fix up any outstanding issues that you have. Do Your Homework - It might sound obvious but know exactly what situation you are in. Understand what your credit history is and what the issues you've experienced are. A $200 default with a telecommunications provider is a lot different from bankruptcy and should be viewed that way by lenders. The more you know about your own circumstances the better position you are in to negotiate a better deal. Shop Around - Get quotes from a number of lenders and find out what's the best deal that you qualify for. Just trying one lender isn't going to tell you the full story. All lenders have their differences and while one may see you as a very high risk another may view you as a medium risk and reflect that in the interest rate that you qualify for. At www.LoanPlace.com.au you can use our information resources to get inside industry knowledge and great buying tips, including: More information on Bad Credit Loans  More information on How Credit Ratings Work  More information on Things to Consider Before You Apply For a Loan 3 Free Bad Credit Car Loan Quotes    Kevin Bolton Founder LoanPlace.com.au Car Loan Comparisons 2015-05-13T02:04:24Z car-loan-comparisons There’s plenty to think about when choosing a car loan. If you really want to get the best deal for you it’s not quite as simple as just checking out a table of interest rates on a comparison website. By doing that you’re really just scratching the surface. Here’s my checklist of 10 Things to Consider When Comparing Car Loans: 1. Car Usage Are you going to use the vehicle for personal use, business use or a combination of both? If you use your car to drive to and from work then this is classed as personal use, if you use your car to drive to meetings with clients, for example, then this would be classed as business use. The reason you need to consider what the vehicle will be used for is because this will have an effect on what loan and lease options are available to you.  For example, if you’re going to use your car for personal use then don’t waste your time looking at finance deals that are only available to business customers. If it’s going to be used for business use then you need to consider what’s going to be the most tax efficient way to do it for you. 2. Types of Loan When it comes to car finance there’s plenty of options out there, not all of which will suit you.  The main options are; secured loan, unsecured loan, chattel mortgage, hire purchase, novated lease, lease and operating lease.  It pays to spend a little bit of time getting to understand how they differ and what financing method suit you best. 3. Lenders Whether you want to go with a name that you know and trust or if you’re just looking for the cheapest deal there’s plenty of banks and finance companies to choose from.  Some specialise in car loans, some offer car loans as a sideline to their main business. Some prefer to lend to ‘blue chip’ customers, some lend mainly to people who’ve had past credit problems. The most important thing is that you get access to a broad range of lenders and find the one that’s right for you. 4. Interest Rates Rates are the main yardstick that people use when comparing car loans. I prefer to think of them as being like a headline in a newspaper. They grab your attention but don’t necessarily tell you all of the story. The rate is going to play a big part in determining the cost of your loan so it’s a good place to start your car loan comparison but be aware that it’s not the only element to consider. 5. Fees Fees are another element that will directly impact on your cost of borrowing. They’re not displayed as prominently as interest rates but you need to find out what fees apply and how much they are before proceeding with a loan. Beware of being lured in by attractive headline rates only to find out that the deal involves high fees. 6. Eligibility You might get your head turned by an attractive looking deal but make sure that you qualify for it before dismissing other options. For example, your loan may be below the amount required to qualify for the ‘special rate’, the car you want to buy may be too old to qualify, your credit history may not meet the necessary criteria, you may not have enough deposit etc. …….. The list goes on. Before you know it you’re being offered an alternative deal that’s not quite as good as what you were expecting. 7. Security Most car loans involve the lender using the vehicle that you buy as security. In other words, the bank or finance company have some rights over the car which could allow them to repossess it if you were to break your agreement and miss your loan repayments. When it comes to selling or trading in your car a secured type loan needs to be paid off in full before the sale can be completed. If you want an unsecured loan you usually have to pay a higher rate for the privilege. 8. Early Termination If you think that you may want to occasionally pay extra off your loan or if you’re planning to pay the loan off early with a lump sum, make sure to check beforehand that your loan allows you to do this. If your loan does provide this flexibility check out if there are there any costs associated with it. 9. Loan Exclusions Make sure to check that the loan will cover everything that you want it to. Most Banks and Finance Companies will limit how much they lend against the value of the car. So if you’re planning on adding lots of extras and accessories to the car, for example,  or including the cost of an extended warranty check out whether the lender will be prepared to include this in the loan for you. Otherwise you could be left with an unexpected bill to pay! 10. Speed If you’re in a hurry to get behind the wheel of your new car then find out in advance how long the loan application and settlement process will take. Turnaround times can vary significantly between different Banks and Finance Companies. Some specialist car loan providers can have you driving away in less than 24 hours whilst others can take days or even over a week to sort everything out. At www.LoanPlace.com.au you can use our information resources to get inside industry knowledge, great buying tips and 3 Free Car Loan Quotes. Use the website to start your own personal Car Loan Comparisons process.  Kevin Bolton Founder LoanPlace.com.au The 5 Key Factors that Determine Car Loan Rates 2015-05-13T02:03:33Z the-5-key-factors-that-determine-car-loan-rates Interest rates have never been lower so if you’re looking for a car loan you have chosen a good time to do it! Whilst it’s a great time to be looking for a car loan it’s important that you understand what factors will determine the rate that you’ll get for your car loan. At www.LoanPlace.com.au you can use our information resources and tools to find the best Car Loan Rate for your individual circumstances. Here's my Guide to the 5 Key Factors That Determine Car Loan Rates: 1. Credit History Your payment history on previous loans and other credit will be a major factor in determining whether; a) you qualify for a car loan, and b) what rate you qualify for. If your previous credit history is poor your choice of lenders will be restricted and those lenders that are prepared to provide you with a car loan will want to charge a higher rate for what they regard to be a higher risk. However, if you have had loans before and can demonstrate good payment history you will have access to more lenders and lower loan rates. 2. Personal Profile Lenders evaluate you based on your profile. They look at elements such as your occupation, time with your employer, residential status and history as well as your assets and liabilities and income and expenses positions. The more solid and stable your profile the happier a lender is because they see low potential risk and are keen to lend to you, rewarding you with lower loan rates. 3. Loan Security When looking for a car loan you’ll have the choice of secured and unsecured loans. The general rule of thumb is that rates are lower for secured loans than they are for unsecured loans. This is because with a secured loan the lender gets to use the car that you’re buying as collateral and if you don’t make your loan repayments as agreed they can potentially repossess it and sell it to cover what they are owed. With an unsecured loan there is more risk involved for the lender as they effectively lend you a cash amount and have no rights over what you use the loan for. As a result of the increased risk the rates are generally higher.  4. Age Of Car It’s newer the better as far as most lenders are concerned! Generally the lowest loan rates are reserved for new and nearly new cars. Lenders normally find that the loan repayment histories for newer cars are better than they are for older used cars. Whether it’s because the borrowers for new cars have more stable circumstances or because they value keeping their car more, they generally tend to be better payers. As a result new and nearly new cars are seen as less risky and lenders are prepared to offer lower rates to borrowers buying these cars. Add in the fact that newer cars also tend to require higher loan amounts, and lower loan rates for newer cars are a no brainer for most lenders. 5. Where You Are Buying From Whether you’re buying from a dealership, a private seller or an auction will have a bearing on the rate that you get for your car loan. If you’re buying from a dealership you’ll have a much larger choice of lenders, including car loan specialists, and as a result you’ll find more competitive rates. If you are using a normal secured car loan most lenders prefer to finance vehicles that are being bought from a dealership or car yard. This is because they feel that there are less potential issues around who has ownership of the car and their payment processes are often more suited to dealing with dealers. So while you may be able to get a great deal on the purchase price when buying privately or through an auction it may well prove more difficult to get a great loan rate. Getting a Great Car Loan Rate Regardless of whether you are a lender’s dream customer or if your situation is a bit different, carrying out your research using Loan Place’s information resources and working with a Qualified Finance Broker can help you to find the very best car loan rate for your individual circumstances. Kevin Bolton Founder LoanPlace.com.au