Car Financing Options Explained

Mitsubishi Finance

If you’re in the market for a new car in 2016, it’s always important to know your options in terms of how to finance the purchase. There are many ways to go about this, and the appropriate option depends on various factors including how much capital you have at your disposal. Make sure you think about the following options carefully.

Cash

If you have the money saved in the bank, this is the most cost effective way of making the purchase for a vehicle. Paying in cash directly out of your bank will essentially mean that you aren’t making repayments on the borrowed money and the transaction is finished at the point of sale.

Leasing

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Buyer Leasing Car from a Dealer

This is an increasingly popular form of car financing. Leasing is essentially a long-term rental based on a contract for a certain period of time, during which monthly payments are made. There are various advantages that come from leasing. For one, it appeals to some buyers because after the lease is up, they can simply select a new model and start a new lease. It also means that the lessee doesn’t need to worry about the future value of the car and doesn’t have the responsibility of selling it as would someone who outright purchased a car. Lastly, monthly repayments are often lower than what you’d be paying on a car loan.

Bank Loan

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A personal loan from a bank or another financial body is usually paid off between 1-10 years and requires that the buyer makes monthly repayments, which can be quite high compared to a leasing option. The benefit is of course that at the end of it all, you own the car and when you take into accounts its value, you likely wind up paying less in comparison to other monthly repayment options.

Auto Loan

Car dealers also offer car loans that can be beneficial to buyers. There are various loans available depending on the dealer. A secured loan is quite common and requires that you offer collateral against the loan in the case that you can’t pay it. A simple interest loan is also a good option given that the interest is calculated according to what remains owed. This gives you an incentive to pay off the loan more quickly.

Credit Card

Credit Card, credit card payment,

This is generally not a good option given that many car dealers charge extra fees on top of the interest you’ll be paying on your monthly repayments. This does, however, offer you extra protection in some cases if things go pear-shaped with the dealer.

Always remember to speak to your accountant/financial advisor or at least discuss your options with the car dealership when you’re discussing the terms of sale. Selecting the appropriate car financing option is very important and can bring many benefits to you as the buyer. To get exclusive Mitsubishi finance deals in Melbourne speak to the experts in Chadstone Mitsubishi today. Our team will look into all your matters and will provide the best solution for your car purchase.

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Personal Car Loan or Exclusive Finance Deal from Mitsubishi

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Buying a new or used car can be a stressful situation at the best of times, but when you do finally settle on your dream Mitsubishi car the next step is choosing how to pay for it. For the majority of people, buying a new car outright isn’t financially possible, which is why there are many different options to choose from when it comes to purchasing your car.

But which is best for you? Let’s take a look at the differences between a personal car loan and what is offered by your local Mitsubishi dealership in terms of financing.

In most instances, a personal car loan can be taken out by many different financial institutions. This includes your personal bank, another high street bank that may offer select car loan services, as well as a financial loan service that specialises in loans for the purchasing of vehicles. For the most part, many people choose to talk to their own bank about a personal car loan, as they may be able to offer a better deal than a rival bank.

Secured Loan Against The Vehicle

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The loan that a bank or financial institution will be able to offer you is very similar to a regular loan you may take out for building work on your home, an extra expense or something similar.

The majority of these loans are usually taken out of the car you are purchasing as a guarantee for the loan. The car is used as a security measure so that the terms and repayments of the loan can generally be lower than expected for a general unsecured loan.

By using your new car as security for this personal loan, you are at risk of losing the car if you do not make repayments. Usually, many banks will be able to offer you a fixed interest rate for the totality of the repayments schedule, as well as being able to make additional payments on top of the agreed repayment schedule.

Get A Better Deal With Your Dealership

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car key

For Australians, particularly living in Melbourne, Mitsubishi finance offers from local dealers differ slightly in that the dealership may be able to secure you a better deal for their customers with their banking loan supplier. This can vary from dealership to dealership, but most Mitsubishi finance options available are priced very competitively for the current market.

The benefits of the Mitsubishi finance deals:

  • Spot authorization
  • Affordable finance options
  • Competitive rate on the market
  • Pre-authorization for future purchase
  • Available for private and business use

Get A Quote In-Store

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Most dealership finance quotes are available at the dealership itself, and can often offer you a much more comprehensive finance deal that includes insurance and warranties to go with it. As well as providing services for life and disability insurance along with the general finance agreement.

You will also be able to get extended warranty offers at participating dealerships and other deals as financial incentives to choose to get finance with the dealership.

These added bonuses often mean the majority of people opt for the great deals that Mitsubishi finance options can offer its customers, and allow you to purchase the car and drive away free of hassle and negotiation that finding a good Mitsubishi deal elsewhere might give you.