Learn more about your finance options for a Hyundai.
Hyundai is a popular brand that has become the car of choice for many Australians. This manufacturer has a wide range of vehicle types available, which is a huge part of the appeal. This includes the Hyundai i30, which is known for helping you zoom around the city, and the iLoad which is ideal for businesses who need help hauling stock. If you’re in the market for one of Hyundai's models, it’s ideal to have your finances in order before you consider buying.
What types of finance options are there for your Hyundai?
There are many finance options to choose from, including:
- Car loan. Lenders offering these loans will require the vehicle as security, and in exchange give you a competitive interest rate. This rate usually falls between 5-10% p.a. The loan amount you’re approved for is usually tied to the value of the vehicle but amounts of between $1,000 and $100,000 are available.
- Personal loan. This loan option can be securedorunsecured. An unsecured loan means that the lender does not take any security over the vehicle you wish to buy and you can use the funds however you want. Unsecured rates are generally 8-16% p.a. while secured rates are generally 5-10% p.a.
- Car lease. This allows self-employed people to buy a car for business purposes. The lender purchases the car and you make lease payments until the end of the term of the lease.
- Commercial hire purchase. This is an option for businesses who hire a car from the financier for a fixed payment monthly over a term that is agreed to. You have the option to purchase the car at the end of your loan term.
- Novated lease. Novated leases give employees access to tax benefits by allowing them to salary package a car. You’re able to lease the car and your employer pays the lease repayments from your pre-tax income.
- Hyundai Finance. Hyundai also offers its own financing options which you can sign up for at a dealership. You have your choice of standard loan options such as consumer finance, finance lease and a commercial hire purchase. As well, there are innovative options such as a goods loans and a CarPlan. A goods loan is available to you if the vehicle will be used 50% or more for business purposes, which allows you to claim tax deductions. The CarPlan is a lease with an option of purchase or trade-in at the end of the term.
It’s important to remember that, although it’s possible to get finance, it’s a purchase that isn’t regarded as “good debt” as the asset that you’ve purchased depreciates in value as soon as you’ve driven it off the lot.
It can also be tempting to just opt for dealer finance as you can have the transaction done in one go. However, it would benefit you to do your research and ensure that whatever financing you choose is ideal for your financial situation.
What factors should you consider with your finance?
There are several things to look at in your finance before you jump into a Hyundai and drive off into the sunset, such as:
- Can you afford the repayments? Knowing if you can afford the repayments, whether they be monthly, fortnightly or weekly, is very important before you consider getting a new car. You don’t want to drive yourself into debt.
- Do you want to own the vehicle? There are lease and loan options available and both types offer benefits and drawbacks. However, leases may not allow you to own the vehicle upfront. Consider whether you want this asset under your name.
- Is the vehicle for personal or business use? You can access tax benefits and flexible finance options if your vehicle will be for business use, so remember this when considering your options.
- How’s your credit? There are lenders available that will consider borrowers with poor credit, but remember this will limit your finance options and affect your interest rate.
Loans you can use to finance a Hyundai
Questions to ask yourself before you finance a Hyundai
Before you finance your dream car, there are some things to consider, which include:
- What’s my budget? It’s important to know how much you can spend before picking your ideal car. Hyundai has a range of vehicles starting from $20,950 for the i30 that will help you squeeze into those small car spaces or the pricier Santa Fe that comes in at a cool $40,900. Using a car loans calculator will help you figure out how much you can afford to pay off each week, fortnight or month.
- What kind of car do I want? Hyundai has a selection of vehicles available to suit a variety of needs. If you’re after more commercialised vehicles, such as the iLoad, Hyundai can help you out. If you want a people mover to help transport your growing family around, Hyundai offers the Santa Fe and the Tuscan. Doing your research on what kind of cars are available can help you make a firm decision.
- What kind of features do I want? Genuine Hyundai accessories come with each Hyundai vehicle that you purchase. These vary depending on the car but can start from front park assist, a multimedia and navigation system, sunroof, Apple Play, leather interior and many more. Do your research on what kind of features are on offer so you don’t get overwhelmed. Make sure the car you want has them before buying.
Costs
Some costs for you to consider before applying for a loan for your new car are:
- Loan fees. Before applying for a loan, you should check if there are any upfront fees such as an application fee, and whether there are any ongoing fees that you’re expected to pay, such as monthly fees or transaction fees. Another fee to keep an eye on is a fee if you make an extra repayment. The fees will vary from lender to lender.
- 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.
Saving enough to buy the car of your dreams might not be enough if you are unable to keep your dream car roadworthy and running in the way that you like it. These additional costs can add up and are something to keep in mind before purchasing your vehicle.
What you will need to apply for a loan
You’ll need the following to apply for a car loan:
- Financial statements. These can include payslips and bank statements for the past three months, or your last tax return statement.
- Identification. This can be shown through your Australian Driver’s Licence (if you have one), your Medicare card, your birth certificate or your passport.
- A stable income. Most lenders won’t let you borrow money off them if you can’t show that you have a stable income.
- Assets and debts. You’ll need to know your current assets and liabilities situation which also needs to be shown through documentation.
Now you know what you need to do to purchase a new Hyundai. Keep in mind your financing options and additional costs before choosing your favourite car – ours is the Hyundai i30. Enjoy the drive!
Pictures: Shutterstock
