How to get the finance you need for your new Mazda.
Has the old car that you’ve had since you were 16 finally died? Or maybe you’re just ready for an upgrade? Whatever the case, if you’re considering purchasing a Mazda, it’s important to think about your finance options.
This guide will take you through what you need to think about when it comes to financing a Mazda and what your options are.
What type of finance options are available for you and your Mazda?
There are a variety of options that are available when it comes to getting a new car. These include:
- Secured car loans. This is a loan that will use your newly purchased Mazda as security. The loan amount is usually tied to the purchase price of the Mazda.
- Unsecured loans. These loans usually have higher interest rates than secured loans but the loan amount can also be used for other purchases, such as extras for your car or insurance.
- Novated lease. This involves an agreement between you, your employer and a third-party financier where you pay for your vehicle out of your pre-tax salary. Your employer will be responsible for making the repayments.
- Commercial hire. This involves you renting the car and having the benefits of ownership without actually owning the car. This can be a good option for business owners and people who want the car but don’t want to own it outright.
- Chattel mortgage. This is for businesses who need cars quickly, as the lender loans money to the business for the car and then puts a mortgage on the car.
- Dealer finance. Naturally, the dealership has finance options available. Dealership finance can offer lower ongoing repayments because the rates are around 0-2% p.a. This is because you will pay a balloon payment of up to $5,000 or even $10,000 at the end of the loan period.
Compare car loans suitable for use to purchase a Mazda
Things to look at with your finance
There are a variety of things to look at in your financial life before you decide to get a new car. Here are a few things to consider before deciding to get that brand new Mazda:
- The pros and cons of getting a loan. Sure, getting that new car might be great, but what’s not so great are the loan repayments. Make sure that this is something you can afford to do before taking it on and getting caught up in the new car feeling.
- Look at flexible repayment opportunities. Make sure the loan you get has the option for flexible repayments, such as allowing additional repayments or early repayment without penalty. This is a convenient feature that can save you money.
- Do your research. As with any huge financial decision, it’s very important that you consider all of the options available to you and whether or not this one might be right for you. If it isn’t, there’s definitely a loan out there that’s willing to meet your needs for low fees. You just have to find it!
Things to consider before you finance a Mazda
Here are a few things to consider before deciding to finance a Mazda.
- Fees. Make sure that you’re aware of all of the fees that the loan you’re applying for has. Fees can include those charged upfront, such as application and establishment fees, or ongoing fees such as monthly or annual fees.
- Loan term. Figure out realistically how quickly you can afford to pay off your loan and find a loan term that meets this.
- Interest rates. Compare interest rates to find the lowest and best rate for you. This is a crucial detail to look at as this impacts your repayments and the overall cost of your loan.
- Comparison rate. Don’t forget to check out the comparison rates on any loans you might be interested in as this gives you more of an idea as to how the loan will actually cost.
- The amount you want to borrow. It’s important to note the loan amounts the lender offers, to see if this meets your needs.
Costs to consider before applying for a loan for a Mazda
We’ve covered all of the financial and important costs, such as upfront and ongoing fees and the amount you want to borrow, but it’s also important to think about the car’s running costs. Although you might be able to afford the loan repayments for the car, you need to factor in costs such as petrol, regular servicing and maintenance of your car as well as registration and insurances.
That’s why it’s important to think about this before applying for a car loan. It’s also important to consider whether or not the minimum repayments will leave you with any money left over to cover all of the expenses that were mentioned previously.
What you will need to apply for a loan
Eligibility criteria and application requirements differ between lenders. But generally, in order to apply for a car loan you will need to:
- Be 18 years of age or over
- Be an Australian citizen or permanent resident
- Have a steady income that allows you to afford the repayments
- Be employed in some capacity (some lenders will accept Centrelink applicants)
As long as you follow the considerations in this guide, you should be feeling the wind in your hair from your brand new Mazda in no time.