The PRWIRE Press Releases https:// 2017-01-04T05:01:23Z Use these tips to get a great new car deal this summer. 2017-01-04T05:01:23Z use-these-tips-to-get-a-great-new-car-deal-this-summer Summer is a great time to buy a new car. Manufacturers are running great deals to clear last years stock and you might have some more time on your hands thanks to the holidays. Navigating so many deals and offers can be confusing so we’ve put together some tips to help you get the best deal.   Research, Research, Research. Then Negotiate, Negotiate, Negotiate. Getting the best deal is going to require some research. Compare prices, deals, makes, models and trim levels. This can all be done from the comfort of home using online tools and websites. The car market is a competitive market and where there is competition, there is bargaining power. Always get more than one quote and play dealers off one another. Dealers just want to sell cars and get their numbers up, so push hard for the best deal.   There Is More to The Deal Than the Price There is an old idiom that if it’s too good to be true then it probably is. A prime example of this is manufacturers 0% finance deals. Manufactures offer 0% finance to get buyers interested, however there is often a price to pay elsewhere. Often this is on the price of the vehicle, and undervalued trade-in, through lock-in servicing contracts or contract fees. Read our article on the harsh reality of 0% finance here. When considering a car finance deal, don’t just look at the repayment, make sure you’re comparing apples with apples or oranges with oranges. You can read more about what makes a car loan cheap here.   Get A Pre-Approval Before Shopping Getting pre-approved for finance before setting foot in the dealership buys you bargaining power and reduces your risk of getting caught out on a bad finance deal. Buying a car is an exciting and emotional experience and some dealers play on this to lock you in to an application for finance after choosing a car. A pre-approval allows you to shop like a cash buyer and focus on getting the best price and options for your car.   Know What Your Trade-In Is Worth Dealers will always offer you less than market value on your trade in. It is one of the main ways they make money on a deal. If they can get a low price on the trade, it increases their margin when they sell it at retail. It is unrealistic to expect a retail price on a trade-in, however it pays to know the true trade-in value before you go to the dealership. Redbook.com.au is a great tool for checking your cars current trade-in value.   Read the Small Print Car ads, car deals and car contracts are full of disclaimers and car salesmen are not known to be the most honest members of our community. Don’t get caught out and miss out on the deal you are after. Some ads or deals will exclude certain options, require you pay full price for the vehicle or include hidden fees such as on road costs. Do your due diligence and read the small print.   Be Very Wary of Aftermarket Add-Ons Let’s get one thing straight; you do no need paint protection. Manufacturers don’t make cars that are incomplete are require paint protection. Window tinting is great; however, it is always cheaper to get this done from a third party. Extended warranties can be valuable; however, we recommend an insurance warranty and not a contract warranty. Contract warranties are issued by the dealership and require you to get the vehicle serviced at their dealership. An insurance warranty on the other hand provides the same (if not greater) protection and allows you to get the vehicle serviced at your choice of qualified and acceptable mechanics.   Hopefully these tips allow you to make the most of the new year car deals and offers. Do your research, dot your I’s and cross your T’s and happy car hunting. For more advice or to arrange your car finance, call Revolution on 1300 882 851. Our Most Commonly Asked Questions & Why They Are Asked. 2016-11-30T06:21:29Z our-most-commonly-asked-questions-amp-why-they-are-asked In the financial services industry, there is a lot of different information available to consumers. Unfortunately, this information varies a great deal depending on its source.  Many providers of financial services such as car finance will tell a client what they want them to hear and will often avoid the truth at all costs. At Revolution Finance, we feel this is not only unfair and morally unacceptable, it also reduces the trust consumers have in our industry. With this in mind, we want to set the record straight and provide our clients with the most accurate and up to date information we can. Below is a list of our most commonly asked questions and the honest answers. What is the interest rate? This question gets asked a lot and for obvious reasons. People want to know how much the loan is going to cost them and the interest rate plays a significant role in determining this. Given the importance of the interest rate, clients should not need to ask this question though. It should be one of the first things your consultant discusses with you. Unfortunately, many providers of car loans avoid discussing interest rate in order to increase their commission (by selling a higher rate) or to simply have the client use their product, despite it not being competitive. Car dealerships love avoiding the rate discussion and will try and sell a ‘repayment’. Whilst comparing repayments is a great way to ensure you are getting the best deal, it is vital to ensure you are comparing apples with apples (such as loan term, fees and balloon payments).   What effect will the application have on my credit rating? Regardless of what any other provider tells you, a car loan application will have a negative impact on your credit file. The impact will be minor and if it is only one application it will not have a negative influence on your ability to obtain credit in the future. The only time a car loan application becomes significantly negative is if your consultant carelessly submits multiple applications to multiple lenders. This will result in numerous credit enquiries and the combination of these enquiries in a short period of time will be detrimental to your credit rating. The moral of the story is to ensure your broker, consultant or lender only submits one application to one lender. If a new application is required (which can happen), the consultant must get your approval prior to submission.   What are the establishment fees? Establishment fees will vary from lender to lender and from provider to provider. There are a few things to look out for here however. When using a broker or car dealership, an ‘origination’ fee will almost always be charged in addition to the lenders establishment fee. This origination fee will vary from $250 to $1,000 and is typically financed into the loan. At Revolution, we almost always include a fee for our services and this will be disclosed to you. All our quotes and pre-approvals are inclusive of our origination fee. Be mindful of this fee when dealing with finance providers as some will quote without this fee included.   What next? This question covers a vast range of misconceptions or mistruths in the financial services industry. Once pre-approved, clients often want to know what happens next and what the timeline looks like until the process is finalised. There are a few important things to look out for her. First, many brokers and dealers will put a time constraint on your approval. For example, they may tell you your approval expires in 14 days in order to create some urgency and get you to make a buying decision. Whilst some lenders will give an expiry for pre-approval, it is rarely 14 days and it is always easy to reinstate the pre-approval provided your circumstances don’t change. If a broker or dealer tries to rush you, they do not have your best interests in mind. Second, clients often ask what happens next because their consultant fails to educate them on the process. Your broker should be upfront and honest about what you need to do and what they will take care of. Get realistic timeframes from your consultant and hold them to it – it’s the least you deserve!   Give Revolution a Shot At Revolution Finance we want to change the way clients are treated and change public perceptions while doing so. We believe in providing an honest, affordable and reliable service to our clients and would welcome the opportunity to help you out. Give us a call today on 1300 882 851 or submit an enquiry online today. What exactly is a cheap car loan? 2016-11-22T03:39:56Z what-exactly-is-a-cheap-car-loan When we receive enquiries for vehicle finance the first, and most common, question we receive is how cheap is it? With this in mind, we have put together an article on what makes a car loan cheap and what to look out for when financing your car. Interest Rate First and foremost is the interest rate. An interest rate is the amount of interest due per period and is paid as a proportion of the amount borrowed. The higher the interest rate, the more interest you will pay and therefore the more expensive your car loan will be. Interest rates are typically allocated by the lender based on your personal circumstances. Things that can affect your interest rate include; home ownership status, credit history, age of the car you are purchasing and loan to value ratio. Speak with one of our car loan brokers for more information and advice on keeping your interest rate low. Fees There can be a plethora of fees when applying for a car loan and these can have a significant impact on the total cost of your loan. Let’s take a look at the potential fees involved and what to look out for. Lender Establishment Fee The lender establishment fee is charged by the bank or financial institution your loan is set up with. Establishment fees in Australia typically range from $150 - $400 and are almost always financed into the loan. It goes without saying that the lower the establishment fee, the better. Ongoing Account Keeping Fee The ongoing account keeping fee is a fee that can have a significant impact on the total cost of your loan. These fees will vary from $5 per month to $20 per month. A five-year loan with an account keeping fee of $20 per month will increase the cost of the loan by $1,200. As you can see, it pays to look for a loan with a low account keeping fee. Early Termination Fee Some lenders will charge you a fee for exiting a loan contract before its maturity. If you don’t intend of paying the loan our early, this fee is of little consequence to you. If you at least want the option to pay out early, it pays to confirm what the early termination fees are. Most lenders will charge a ‘pro rata’ fee that reduces as the maturity date draws nearer. For example, Bank XYZ has an early termination fee of $680. Over a five-year loan, this equates to $11.33 per month remaining on the contract. Therefore, if you terminate the contract with 12 months remaining, your early termination fee will be $135.96. Other Fees The above provides a solid outline of the main fees to look out for when applying for auto finance. There are however, some less obvious fees to look out for also. Keep an eye out for direct debit or BPay fees, late payment fees & default fees also. Loan Structure The loan structure can have a significant impact on the total cost of your loan. Here is what to look out for. Loan Term Whilst a longer term loan (such as seven years) might look appealing on face value, given the repayments will be lower, it is important to note that an extended term will result in your paying more interest over the life of the loan. If you have the capacity to do so, keep loan terms under five years. Somewhere between three to five years is considered the sweet spot. Balloon Payment A balloon payment or residual value is a lump sum owed to the financier at the end of the loan term, after all regular repayments have been made. A balloon allows you to repay only part of the principal sum over its term, reducing your monthly repayments in exchange for owing the lender a lump sum at the end of the loan term. Balloons are useful tools to keep repayments down and manage cash flows, however they can also increase the cost of loan. Some lenders will charge an interest rate premium when a balloon payment is applied, increasing the amount of interest you will pay. It is also important to note that plans must be made to deal with the residual value at the loans maturity. Balloons can be refinanced or paid out in full or the vehicle can be traded in when upgrading to a new car. Cheap Car Loans At Revolution Finance, we pride ourselves on offering the lowest cost car loans available on the market. We are constantly on the lookout for the best deal for our clients and our number one priority is cheap, affordable financial solutions. Our initial consultation is always free so give us a call today on 1300 882 851 or submit an enquiry online now. 5 Questions To Ask Before Buying A Car 2016-11-11T05:45:35Z 5-questions-to-ask-before-buying-a-car The decision to buy a new car may seem unimportant compared to buying a house, but the requisite due diligence is much the same. A poor decision in the bargaining process could lead to years of extra debt, while a hurried selection could reduce the resale price. Fundamentally, it comes down to the questions you ask at the start, which should include the following. Does it meet my requirements and expectations? Before you get started, it’s sensible to come up with a checklist of exactly what you’re looking for in a car. New or second hand? Prestige or budget? Compact or family? What model? Following this, narrow down further and ask whether it has the right ANCAP rating and green rating, and has a clean and well reported maintenance history if it is second hand. Do I know anyone with this car? An authentic reviewer will tell you what the car dealer or private seller won’t. Peruse your network to see if anyone you know has the car you intend to buy and ask them for the pros and cons. You can also look on sites like reddit or reputable automotive and motoring sites for reviews of makes and models. How much will it cost to run? Underestimating the price of running your new car is a treacherous mistake from a budgeting point of view. Find out how much it costs to service (get quotes from several mechanics), how much a tank of fuel is and how long it normally takes before parts start to deteriorate. It also pays to get some price information on spare and replacement parts. Any room to move on price? Always be prepared to negotiate on price because the advertised price is rarely what the vendor expects to sell it for. If you have concerns, walk away, even if that takes the offer off the table. If a vendor thinks they may have lost their best buyer, they may come around. How will I finance it? Car loans are becoming a more popular way of paying for a new vehicle for those who don’t have ready finance. Before you take one, it’s vital you assess how much you can afford to borrow, what your repayments would be and how long the liability would hang around. For an obligation free consultation, speak with one of our expert consultants today. We offer a wide range of car finance solutions from a panel of more than 20 lenders. Unlike houses and units, cars unavoidably depreciate in value, so only take a loan if you’re comfortable you will be able to pay it off over a period of time, in a variety of conditions, and know that it is unlikely you will recover the sale value.  Low Doc Loans Explained 2016-10-28T11:46:45Z low-doc-loans-explained When you’re a business owner, there are things that you have time for, and things that you don't. Customers and growing your business – Yep, plenty of time for those! Sorting through paperwork, spending hours on the phone organising finance, waiting in your local branch for someone to get around to you – Nope, I can think of better things to do. When you are time poor, or lack the financial paperwork required for a regular loan, a Low Doc loan can be the saviour of the small business owner. What the Hell is a Low Doc Loan? A Low Doc loan is essentially the same as a regular loan, except the only paperwork you need is a declaration of income, a signed privacy form, the application form and proof of identification. Given the declaration of income is all you need to prove your financial situation; Low Doc loans are often referred to as self-declared loans. Pretty simple, right? It provides access to the same interest rates and similar loan types, but without the need to run around trying to find all the essential financial documents you need for a traditional loan. As an added bonus, it isn't just confined to cars. You can get a Low Doc loan to finance business equipment, caravans and more, so long as it is deemed Fit for Purpose (i.e. it is deemed required, and will be used for business or commercial purposes). Who Can Get One? A Low Doc loan is available for small-business owners or self-employed workers who may not have access to, or the time to organize the necessary paperwork to qualify for a regular loan. Approval criteria for Low Doc loans varies from financier to financier, which is great news for Sole Traders, Business Partnerships, Trusts and Corporations with a clean credit history, because it means there is normally a Low Doc loan available to suit your circumstances. To meet the basic requirements with most lenders you must meet the following conditions: 1.     ABN registered for at least 1 day 2.     Property owner or able to provide a deposit 3.     Maximum lend $200K for cars and $500K for trucks and equipment The following help, but are not essential: 1.     Clean credit file 2.     GST Registered 3.     ABN Registered for 12 months Do you qualify and want to get started, or just want to ask one of our expert finance consultants a question? Give us a call on 1300 882 851 or get an online quote by clicking here! Without the paperwork usually required to apply for a loan, such as tax returns, bank statements and accountant's letters, a Low Doc loan will usually require security to fall back on. Being a homeowner gives your lender confidence that you are suitable for finance, however, if you don't own a home, most lenders are happy to take a deposit from you and then use the asset you are financing as security. Lenders will rarely take security over your property, however they like to know you have a fall back position. Furthermore, if you have had finance within the past six months (and the account has good repayment history), we're happy to chat to your lender and use that history to get you financed again. No running around trying to round up paperwork all over again! How Do You Apply? Revolution Finance works for you to ensure you get finance, even if you don't have the documentation available. If you meet the above requirements, Revolution Finance can arrange your finance quickly and easily. Give us a call on 1300 882 851 or get an online quote by clicking here! Revolution Finance, your car finance experts. Be wary of online car loan calculators 2016-06-28T03:51:05Z be-wary-of-online-car-loan-calculators Online car loan calculators can be a great tool for calculating rough repayment figures, however caution should be taken when relying on their results and the information they produce. Here are a few things to look out for when using loan calculators online. Does the calculation include fees? Many online car loan calculators don’t include all relevant fees and charges (ours included). Given that many brokerages have a multitude of lenders on their panel, many of which have different fees, it is impossible to include fees in the calculation and ensure they are accurate.  Check the default term. In order to give the impression of a cheaper repayment, many calculators will set the default term to 7 years, rather than the more common 5-year term. If keeping your repayments as low as possible is your priority, then a 7-year term will be fine, however if you want to ensure you pay the smallest total amount over the loan term then a shorter term will be better. Is there a balloon? Balloons are useful tools to keep your payments down and to improve your personal cash flow. This being said, if you intend on paying out your loan in full over your loan term then a balloon isn’t for you. Check the calculator to see whether a balloon is included, if so, ensure you can remove it and recalculate your repayments. Try our calculator today. Our car loan calculator provides a rough estimate of your car loan repayments and can help you budget for your next car loan. Fees are not included in our calculation and a residual is set at 30% automatically. To get a personalised quote that is specific to your current situation and your financial goals, call us today on 1300 882 851 or submit an enquiry. What are the best car loan rates currently available on the market? 2016-06-10T05:56:35Z what-are-the-best-car-loan-rates-currently-available-on-the-market Consumers looking for a loan to finance their next car purchase are spoilt for choice with dozens of options to choose from. Today we aim to take some of the hassle out of shopping around by comparing the best rates and car finance options available on today’s market. Rates, fees and features are current as of June 10th 2016. The Banks The big four have a variety of products available, none of which are particularly competitive. ANZ have the best offering here with 6.80% per annum for their Online Secured Car Loan. CBA come in second with a discounted rate of 7.49% (normally 8.49%), Westpac have an offering of 8.49% for their car loan product and bringing up the rear is NAB with an outrageous rate of 13.69%. Going directly to your bank is unlikely to yield the best results when sourcing your car finance so let’s look at the other options available to you. Credit Unions The offerings from the credit unions are very similar to that of the banks with Community First Credit Union offering the best rates with 5.34% (for new cars). People’s Choice Credit Union are offering 5.64% as a special discount rate if you buy a new car – their standard rate is 11.99% and CUA have rates from 7.99%. Finance Brokers Finance brokers have access to several lenders, ranging from big banks to small specialist lenders. Not only does this increase the likelihood of your broker getting you approved, it also increases your chances of getting a sharp rate. At Revolution Finance, we have access to rates from 4.09% for commercial clients and 4.79% for consumers. That’s considerably lower than any offering from the big banks or the credit unions. Not only will you get access to the best car loan rates by using a broker, you will get personalised service and expert advice free of charge. Get in Touch Today If you want the best car finance rate in Australia, call us today on 1300 882 851 or submit a quote request now. Use our car loan calculator to calculate your repayments and read our blog for more car loan tips. How to leverage your equity and invest in property 2016-06-03T05:41:25Z how-to-leverage-your-equity-and-invest-in-property Using the equity in your own home to purchase an investment property could be easier than you think. The recent surge in property values across many parts of Australia has meant that many home owners – even those who have not been in the market for that long – are finding themselves with sizable amounts of equity in their properties. If you have always considered investing in property but don’t know where to begin, now is the time to learn. Rather than saving up for years for a deposit for an investment property (those funds may be better used reducing personal, non-tax deductible debt) why not use your equity and get started now? To get started you should have your mortgage broker or lender organise a bank valuation of your property. This will give you an exact figure of how much more you may be able to borrow against your home. These funds will, in a way, form your deposit for the new purchase, and you will obtain another investment loan secured by the new property for the bulk of the funds. In many cases, the bank can do a desktop valuation of your property – which means the valuation amount is based on recent sales in the area of comparable properties and the growth in your area since you purchased. You may not even need to have a valuer come out to your home to inspect it, and in some cases you could have the valuation amount the same day. Once the valuation is completed, the next step is to contact your broker who will prepare an application to access the funds from your equity to use as a deposit. Your broker will arrange a pre-approval that is valid for 90 days so that you can start shopping for your investment property. Why not call your broker to discuss financing your next investment property, or if you don’t have a broker give Revolution Finance a call on 1300 882 851. Calculate your repayments Use our home loan calculator to calculate your repayments and get started in property investment today. Revolution Finance Shares Tips on How to Choose the Right Broker 2016-05-24T08:30:27Z revolution-finance-shares-tips-on-how-to-choose-the-right-broker The finance broking industry is growing rapidly and finance and mortgage brokers are fast becoming the preferred option for consumers looking for finance. Not all finance and mortgage brokers are made equal and in many cases it can be like comparing apples with oranges. With this in mind, we have put together a list of questions to ask your broker before entering into an agreement. What are the fees? Make sure you ask your broker to disclose all fees associated with their service and the products they have in mind for you. This includes their fee (origination, brokerage or professional services fee), lender establishment fees, monthly ongoing fees, clawback or cancelation fees and any package fees. A good broker will be upfront and honest about fees and should disclose this in writing as early as possible. How are they paid?  This is an important question as a broker’s remuneration can influence the lender they recommend and therefore the result you achieve. Different lenders pay different commissions so ensuring your broker won’t be influenced by this is very important. Brokerages that pay their broker’s a salary are often the way to go as the brokers are rewarded based on the service they provide, not the lender they choose. If your broker does get paid commissions, get an estimate upfront. At Revolution Finance, none of our brokers receive commission so you can be sure you will get the right loan for your situation. What if you don’t like the offer?  Make sure you always have the option to walk away if you’re not happy. Some brokers will try to lock you in before they provide any detailed information on what they are offering – if this is your broker, time to find a new one. Good brokers will provide upfront quotes and wont lock you in if they cannot deliver on what they promise.  Can they be trusted? Your broker should be a trusted advisor – someone you can call after hours and on weekends for advice and guidance. If you have doubts about your brokers qualifications, knowledge or trustworthiness – move on. Brokers should be highly qualified, highly knowledgeable and highly trustworthy - ultimately, they should be professional. Put Revolution to the test. At Revolution Finance, we believe we meet and exceed these criteria and we’re willing to be put to the test. If you’re looking for your first broker or you’re ready to move on – give us a call on 1300 882 851. We have professional car finance and mortgage brokers so get in touch today. Car finance company reviews the C63 AMG 2016-05-16T07:46:47Z car-finance-company-reviews-the-c63-amg The top model of the new C-Class Coupe range, the C 63 S two-door shares the twin-turbo 375kW/700Nm 4.0-litre V8 of its four-door counterpart, again matched to Mercedes-AMG’s very capable and very refined seven-speed Speedshift MCT auto transmission. The gearbox is arguably the best of its genre and it’s a stunningly powerful engine. Fortunately for two-door fans, the team at AMG have recognised that perhaps the four-door had just a touch too much of a good thing when it comes to powertrain performance. Thus there have been wholesale changes in an effort to cure some of the woes from which the high-powered sedan suffers. The upgrades have been made right from the body-in-white stage. Extra reinforcement has been added and the rear subframe is unique. To aid in that search for better manners, better traction and eventually even better performance, the coupe has also been gifted a substantial increase in its footprint. The C 63 S Coupe’s front and rear tracks have been increased and there’s also a modified rear axle design. No less than 12 links now control rear axle location and the suspension alignment and three-stage electronic adaptable damper settings are also all bespoke. The bodywork has been re-sculptured to accommodate the chassis tweaks, giving the C63 S two-door even more muscular looks than the sedan. The front guards are pumped out by 64mm and the rears 66mm — about the width of an iPhone. This is not a huge amount but it is enough to give the car a very different stance. Like its four-door counterpart, however, there are some pretty aggressive front and rear body tweaks when compared to the standard model coupe. Performance There’s no doubting the coupe’s additional performance potential. The seat-of-the-pants impression is that there’s more under power grip than in the sedan, although there was barely a corner at Eastern Creek where the stability control light couldn’t be made to flicker even in Sport Handling Mode mode. That said, it feels like the suspension and track changes do deliver better turn-in and a more confidence-inspiring front-end. In a straight line the C 63 S is a jet! Mercedes-AMG claims a 0-100km/h time of 3.9sec for the coupe – 0.1sec faster than the four-door. Thanks to those wider rear wheels and a change in the rear axle ratio. In its latest, wider and wilder iteration, the C 63 S Coupe is not a car for the shy. Coupled with a meaty exhaust note, the aggressive stance and stocky looks, it means you’re bound to be noticed. Priced from $162,400, you’ll pay a near $8K premium for the coupe over the sedan. For all your car finance needs, call 1300 882 851 or submit an online enquiry above. Useful Tools Car loan calculator: Calculate your repayments and compare your options. Blog: Read our blog for more useful tips, tricks and reviews. Residual Value and Balloon Payments Explained 2016-05-10T05:27:23Z residual-value-and-balloon-payments-explained What’s a residual? A residual value is a term that is used in lease agreements and it makes reference to the value a fixed asset has when its lease term has finished. For example, if you take a lease for a car for 5 years, the residual value will be the value it still has after those 5 years have passed. This residual value is established by the financial institution that offers the loan or the lease. The value is determined at the start of the lending process and it is established according to guidelines set by the Australian Taxation Office. These guidelines are established using forecasts and models that estimate the assets depreciating value over time. Along with the interest rate, fees and the relevant taxes, the residual value is also crucial when calculating your lease repayments. The residual value will reduce your monthly instalments which are also known as rentals. What’s a balloon payment? The concept of a balloon payment is very similar to the residual value, in the sense that it represents the amount of funds that remain at the end of a loan term. The balloon payment is payable as one final payment once the loan term has expired. Unlike the residual value, the balloon payment is not based upon the ATO forecasts that would indicate the depreciating value of the vehicle in time. This gives the buyer more flexibility to choose the size of the balloon payment, providing it meets the lenders balloon payment policies. Balloon payments are not mandatory on car loans and the option of no balloon can sometimes provide the best outcome to clients. What are the benefits? The greatest benefit of a balloon is the fact that it reduces the monthly instalment. If servicing is tight, the lender (or broker) can suggest a balloon payment in order to bring the loan repayments down. Borrowers should be aware that the balloon payment will be due immediately upon the expiry of the loan term. This being said, borrowers have a variety of options available to them at this point; refinancing, cash payment or trading the vehicle in. If the vehicle for business purposes and is financed using a chattel mortgage or hire purchase, having a balloon could increase the amount of interest that is payable over the term of the car loan (provided you refinance the balloon). As a result, you will be paying less principal (which is not deductible) with every repayment you make by having the balloon offset at the end of the transaction. Get in touch today. If you’re in the market for a consumer car loan, lease or chattel mortgage, give us a call today on 1300 882 851 or leave an enquiry online. Revolution Finance Reveal The Truth About Zero Percent Car Finance Offers 2016-05-04T01:24:59Z revolution-finance-reveal-the-truth-about-zero-percent-car-finance-offers Zero per cent car finance offers can be tempting, however when we take a look at the numbers, they don’t always add up. Zero percent or low rate car loan deals are beginning to reappear as car manufacturers attempt to disguise price rises driven by a weaker Australian dollar, or cover up heavy discounting on poor selling models. When it comes to car finance there is no such thing as ‘interest free’ or ‘free finance’. If the official cash rate is above zero, and the banks and other mainstream lenders are charging more than this, it’s a safe bet that you are paying for your zero percent interest somewhere along the way. So where are the dealers and financiers making their money? Let’s have a look… The price of the vehicle. There is little to no flexibility on price when using a zero percent finance offer. You have to pay full retail for the vehicle and in doing so the finance provider still earns their cut. Essentially, the interest costs are factored into the upfront price of the car. You are often better off haggling on price and the arranging your own finance – especially given rates are so low at present. Your trade in. If you have a trade in, the dealer is far less likely to be generous when offering you a price for the vehicle. This can be problematic if you have current finance on the vehicle you are trading. You may not be able to use zero percent finance if you have negative equity (if there is more owing on the trade than the dealer offers you). Higher servicing costs. Zero percent deals typically only apply to new cars, however remember that it is likely you’ll be required to have the vehicle service by the dealer at set intervals – otherwise you risk voiding the warranty. These charges can be a lot more that you what you might pay at an independent mechanic. A deposit and residual are usually required. If you take a look at the small print of most zero percent offers, a deposit of at least 5% is usually required. This allows the dealer and financier to cover their costs upfront. A residual or balloon is also often required. This means that there will be an amount outstanding at the end of the loan term that you will need to either refinance, pay out with cash or could be covered if you trade the vehicle in. Lets take a look at an example… A dealership is currently offering zero percent finance on a vehicle with a retail price of $24,990 drive away. At 0 percent over five years your repayments would be $427.33 (assuming no balloon, standard establishment fee and $5 per month account keeping fee), bringing the total cost of the car to $25,639.80. If you haggle the dealership down to $19,990 drive-away (this model was recently going for this price anyway!) and arrange your own finance, which comes out on top? If you have a decent credit rating, you can expect to lock in a rate of around 6%. This would work out to be $398.23 per month over 5 years (assuming no balloon, standard establishment fee and $5 per month account keeping fee), bringing the total cost of the car to $23,893.80 – a saving of $1,746. The numbers don’t lie, zero percent car finance offers are not always as good as they appear. It pays to do your research and get multiple quotes before making a decision on both the car and the finance. If you want an obligation free quote on your car finance, give us a call today on 1300 882 851 or read more about our car finance here. Revolution Finance Offers Advice On No Deposit Car Loans 2016-05-03T04:55:44Z revolution-finance-offers-advice-on-no-deposit-car-loans Unlike a home loan, most customers don’t need to provide a deposit for a car loan. This being said, you may be asked to provide a deposit if you: Have never borrowed money before, Have negative equity on your current car (you owe more on a loan for your existing car than it is worth), Have poor credit history. Let’s have a closer look at each of these scenarios… never borrowed money before If you've never had finance before, you won’t have a credit file and chances are you'll need to pay a deposit. Here's why: All finance providers conduct a full risk assessment for each loan. As a customer with no borrowing history, the lender isn't able to look at your history of loan repayments to judge your track record and your likelihood of non-payment. They don't know that you will pay back your loan without having any defaults, so they may ask for a deposit on the loan to offset the risk of lending funds to you. HAVE NEGATIVE EQUITY ON YOUR CURRENT CAR If you've financed a car, and the value of the asset has since fallen below the outstanding balance of the loan, this is considered negative equity. This happens when the value of your car is dropping faster than the balance of the loan, your vehicle is destroyed, lost or stolen without sufficient insurance, or you paid more for the car than it was worth. If you're planning to buy a new car but have negative equity on your current car, its likely you will be asked for a deposit. This being said, we have lenders on our panel who offer great solutions for negative equity loans and can offer no deposit solutions. HAVE poor CREDIT HISTORY As with negative equity and no credit history, lenders will look to offset any risk when financing your vehicle. If your credit history shows that you have had trouble paying loans in full or have gone personally insolvent, banks and finance companies will be less willing to lend you money without a deposit to offset the risk. In other words, you should expect you'll be asked for a deposit. If coming up with a deposit isn’t possible for you, we do have no deposit finance options for poor credit, however you should be prepared to pay a higher interest rate to offset the risk. is each lender different? Absolutely. Our lenders have no deposit options, so even if you have negative equity or no credit history we may still be able to find you a loan with minimal or no deposit, if that's what you are after. As these applications are assessed on a case-by-case basis, the easiest way to get started is to speak with one of our expert consultants. Revolution Finance has the best car loans available in todays market and our innovative process will get you in your car quicker. Apply online now or call 1300 882 851. Should you get a car loan or a personal loan? 2016-03-17T09:10:06Z should-you-get-a-car-loan-or-a-personal-loan Looking to buy a car? Great. But which loan is going to serve you best when buying a new car? Today we compare personal loans and car loans – both can be useful facilities to help you get into a new car but there are a few things to take into account with each. Personal Loans Personal loans allow a client to use the loan to finance a holiday, renovations, studies, cars, bikes, boats, weddings and more. Personal loans allow you to borrow a particular amount of money, which you will make repayments for until you have repaid the loan amount plus the interest. A longer loan term can reduce your repayments, however it will increase the total amount of interest you pay over the loan term. Most personal loans a usually unsecured and due to the additional risk, they usually come with a much higher interest rate than a secured loan or car loan. Before deciding to purchase a car using a personal loan, you should look at a secured car loan which can provide a better overall outcome. Using a personal loan for a car purchase can be useful if the car is older or if the client intends or selling the car before the end of the loan term. Car Loans A car loan in its simplest form is not all that different different from a personal loan. The main difference is that a car loan provides funds to finance a car only and the finance is secured against the asset, which in this instance is a motor vehicle.  Car loans are secured against an asset and provide additional security to the lender. With that additional security comes lower interest rates and cheaper fees.   Car loan terms vary from one to seven years. If your aim is to reduce total interest paid, go for a shorter term. However, if you want to keep your repayments to a minimum, go for a longer term. If you’re after a loan to finance a car purchase, it is almost always best to go with a secured car loan. Whilst they may provide less flexibility, the lower rates, fees and better terms will always result in a great outcome. Australia's Cheapest Car Loans? 2016-01-15T05:25:12Z australia-s-cheapest-car-loans If there is one question we hear all day everyday it’s ‘What’s the interest rate?’ With interest rates getting so much media attention over the last 12 months, Australians have become more and more conscious of the rate of interest they are paying on their car loans and home loans. At Revolution Finance, we couldn’t be happier with this development as we believe we have Australia’s lowest rate car loans. A quick comparison at ratecity.com.au will show that the lowest advertised car loan rate on their website is 6.59% (6.87% comparison rate) from imb Bank. The cheapest advertised rate from one of the four major banks is ANZ’s Online Secured Car Loan with a rate of 7.55% (8.40% comparison rate). Our car loan rates start from 4.24% with a low comparison rate of 5.10%. That’s more than 2% lower than the next cheapest advertised rate! Let’s break it down and do a comparison to see how much you could save on a $30,000 car loan. If you decided to go with imb Bank, your monthly repayments over a 5-year term would be $592.15. If you took out the same loan with Revolution Finance, your monthly repayments could be as low as $567.23 per month. That’s a saving of $24.92 per month and a total saving of $1,495.20 over the life of the loan. Low rate car loans are not our only focus. At Revolution Finance, we pride ourselves on doing things differently. We want to change the way you think about finance and start a financial 'Revolution' (pun intended). With this in mind we have developed a service promise that we make to all potential customers and existing clients alike. Not only do we want to provide you with the best interest rate on the market, we want you to have an excellent experience with us, one that goes above what you would expect a financial services firm to provide. Don’t take our word for it! Give us a call now on 1300 882 851 or submit an enquiry by visiting www.revolution.finance View the original post here.