Want to buy an Audi? Learn about your financing options first.
Audi is a brand that has marketed its cars to exude class, luxury and confidence. It has a wide range of sleek vehicle types, along with a logo you know and love displayed on the hood. Audi has also expanded its range to include small cars and sedans. Read on to learn about the financing options available for your new Audi.
What types of finance options are there for your Audi?
There are many options to choose from if you’re looking to finance your Audi dream. You can choose from a variety of possibilities which include:
- Car loan. This is one of the most common ways to finance a car and involves a lender approving you for a loan which equals the cost of the car. The car is then used as security for the loan, and in exchange you get a competitive interest rate. Rates for the car loans vary depending on the lender, but are generally 5-10% p.a. for the term of your loan. You can secure a wide range of funds that start from $1,000 and can go as high as $100,000.
- Personal loan. This loan option is either unsecured, which doesn’t require an asset and lets you use the funds however you need to, or secured, which requires an asset. Rates for unsecured loans start from 8-16% p.a. depending on the lender. Secured personal loans come with lower rates that start from 5-10% p.a. The difference between a personal loan and a car loan is that with the personal loan the funds are yours to do with what you wish, whereas with a car loan you must buy a car.
- Novated lease. A novated lease allows you as an employee to lease a car while your employer pays the lease repayments from your pre-tax income. This can be a tax-effective way of purchasing a vehicle.
- Audi finance. Audi also offers its own finance options which include financing for personal and business vehicles. You have your choice of a consumer loan or a novated lease, while business customers can opt for a finance lease, hire purchase, chattel mortgage or a fleet solution. Audi also offers “guaranteed future value” which allows you to lock in a minimum value for your vehicle before you finance it.
Loans you can use to finance an Audi
Updated April 19th, 2019
What to focus on when picking your finance
There are a couple of things to look at in your finances before you cruise away in your Audi, such as:
- Can I afford the repayments? Knowing whether you can afford the repayments, whether they will be monthly, fortnightly or weekly is very important before you consider getting a new car. You don’t want to drive yourself into debt.
- How’s your credit? The state of your credit will affect the loans that are available to you as well as the interest rate you may be eligible for. You can check your credit score for free with finder to get an idea of your position before you apply.
Main points to consider before you finance an Audi
Before you finance your dream car, there are some things to consider, which include:
- What’s my budget? Although you might have been dreaming of owning an Audi since you were a child, it’s important to look at the price range of this luxury line before you break the bank. The Audi A4 can start from $55,500 and if you’re looking for a sports car like the TT Coupe, this can cost you a minimum of $74,800. If you’re unsure how much your favourite car will cost you, use a car loans repayment calculator to see just how much your weekly, fortnightly or monthly repayments will be if you decide to get the loan amount you’re after for your ideal car.
- What kind of car do I want? Audi allows you to build a car on any model throughout its range, which is as intimidating as it sounds. This means that you can choose from the range and custom design the car to your exact specifications. Sounds fancy, right? If you want an Audi A4 or a R8 Spyder, make sure you can afford the base model before deciding to customise.
- What kind of features do I want? If you know you can go without leather seats for your brand-new Audi, don’t splash out on it. However, if an inbuilt navigation system is a must have, make sure the car you want has it.
Extra costs
Some additional costs for you to consider before applying for a loan are:
- The fees associated with the loan. Before applying for a loan, do your research as to what fees are associated with this loan. There are likely transaction fees and monthly fees. There might also be application fees which are charged for applying for the loan. These vary depending on the lender you decide to go with.
- Upkeep of the car. Paying for fuel, servicing, new tyres and running your car can be expensive. There is also car washing to consider. You’ll want everyone to see how nice and clean your new car is!
- Registration and insurance. Now that you’re on the road, you must pay to be on the road. This is the cost of registration. You’ll also want to consider insurance, as other cars might hit your new car or you might hit them.
What do I need to apply?
You’ll need the following to apply for a car loan:
- Financial statements. You’ll have to to show evidence of your income and employment, tax returns for the last two years if you’re self-employed, and evidence of your assets and debts.
- Identification. This can be shown through your Australian driver’s licence (if you have one), your Medicare card, your birth certificate or your passport.
Now that you know everything you need to get a brand-new Audi, choose your favourite vehicle and your preferred financing option. Our favourite vehicle is the Audi R8 (although this one is up there when it comes to the price range). Consider the additional costs before making a final decision. Then enjoy the drive!
Pictures: Shutterstock
