What you need to know about finances before you buy a Holden
When Holden was founded in 1856, Australia’s love affair with the brand quickly followed. Holden is seen as a strong and reliable car, which might have something to do with its logo being a roaring lion.
If you’re looking to feel as strong and powerful as your new Holden, it’s important to know whether you can afford one. There is a variety of Holden finance options available which we will take a look at now.
What types of finance are available for your Holden?
There are various types of finance that are available to help get your Holden on the road.
- Fixed rate loans. These give you the certainty of fixed repayments and involve you borrowing money from a lender to buy the car and then paying it back over a period of time. Depending on which loan you opt for, the choice of term will vary from one to seven years.
- Unsecured loans. This loan has higher interest rates compared to that of a fixed rate loan but comes with greater flexibility in terms of the type of car you can buy. You can also apply for more money to consolidate debt or make additional purchases for your car as the loan amount is not tied to the cost of the car.
- Novated leases. These involve an agreement with your employer where your new car payments are deducted from your pre-tax salary.
- Car leases. This is a deal that is made where the financier buys the vehicle on your behalf and leases it back to you in return for monthly repayments. You can then have the option to purchase the deal when the term of the lease ends.
- Goods loans. This is where you can be entitled to tax deductions if the car is used for business purposes. However, this must be figured out with your employer and the financial institution you get the loan from before you decide to get this loan.
- Dealer finance. Holden has a variety of options through its financial services arm. It can figure out whether it’s a personal or a business loan and help you sort it out as you’re buying your car.
Possible Holden finance options for you to compare
Holden finance features to look at
- Loan term. Look at how long you can realistically handle the loan term. If you’re able to pay it off in five years, there’s no point in extending it for seven. Generally, loan terms can vary from one to five years for fixed rate loans and up to seven years for variable rate loans. Use a car loan calculator to get an idea of your repayments.
- Fees. Do your research and be aware of any fees that might apply to your finance. Some fees that might apply are upfront application fees and ongoing monthly or annual fees. Check if you’ll be charged a penalty rate for making additional repayments or repaying the loan early as well.
- Loan amount. Figure out how much you can borrow and check out the minimum and maximum loan amounts that apply and whether or not they suit your needs.
- Comparison rates. Look at the comparison rate of each loan as it gives you a better idea of the real cost of the loan. It includes not only the interest rate but also the fees you will be charged.
Things to consider before you finance your Holden
- Affordability. Use a car loan repayment calculator and see if you will be able to afford the ongoing repayments of the loan on your budget. If you’re opting for dealership finance, remember to take into account the balloon repayment at the end of the loan term.
- Costs of running your Holden. Can you afford the running costs of your Holden vehicle as well as your car loan payments? With fuel, insurance, green slip and registration to think of, as well as the trips to the mechanics and accidental bumps into poles, it might not be an option you can swing financially.
- Difference in loans. Make sure you do your research on whatever loan you are considering. Although you might like the fixed repayments option that comes with fixed loans, you might not like the fact that you are unable to make extra repayments to pay off the car quicker.
What costs do you need to consider?
There are a variety of costs to consider when getting a loan for your next Holden car, such as:
- Fees on the loan that might be upfront or ongoing
- Costs of running your Holden, such as registration, fuel and general upkeep such as new tires
- Monthly repayments of the loan and whether or not you can afford them
- Low interest rates, as this might mean that you’re paying a higher purchase cost for the vehicle due to the low rates
What you need to apply for the loan
Eligibility criteria and documentation requirements differ between lenders, but here are some of the things you will need to apply for a loan to finance your Holden:
- Must be 18 years of age
- Must meet minimum income requirements
- Have good credit requirements
- Are eligible to live and work in Australia for the entire duration of the loan
- Proof of ID, such as a passport and current driver’s licence
- Financial information, such as proof of income, details of your credit history and bank statements
If you are planning on purchasing a new Holden, make sure that you’ve done your research on the best finance loan available for you. There are a variety to choose from and please compare your options as well as research any terms and conditions so you end up with the loan that meets your needs.