Arranging car finance
Arranging finance before you find a car will mean you know exactly how much you have to spend and allow you to negotiate. It’s important to choose the most suitable finance for your circumstances and avoid being pressured into accepting a loan that isn’t appropriate for you.
The RACQ Bank Personal Loan Calculator can help you determine the amount you can to borrow by estimating your regular repayments.
Tips when considering finance
- Never sign a contract ‘subject to finance’ – you may be pressured into accepting a loan arranged by the dealer.
- If the sale is conditional on obtaining finance add this clause - Subject to the purchaser obtaining finance sufficient to purchase the vehicle from (name financial institution of choice) by (insert date to obtain finance by).
- Be cautious of dealers or financial institutions that claim to accept all finance applications. It could be a very expensive method of borrowing.
- If your dealer offers to arrange finance for you, do your research to see how it compares with other options.
- Read loan documentation carefully and get legal advice if you are unsure of any terms.
Deposits
- Some sellers insist on a deposit if you want to take the car for an inspection. It is usually considered as evidence of a contract.
- The amount is not usually set so pay the smallest amount possible.
- If you exercise your right not to purchase the vehicle within the cooling-off period the dealer may retain up to $100 of the deposit only.
- If buying privately, get your deposit agreement in writing. It should be refundable if your finance application is rejected or if the vehicle inspection is not satisfactory to you.
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Things to note
The information in this article has been prepared for general information purposes only and is not intended as legal advice or specific advice to any particular person. Any advice contained in the document is general advice, not intended as legal advice or professional advice and does not take into account any person’s particular circumstances. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives and needs.
Insurance Products (excluding Travel Insurance) are issued by RACQ Insurance Limited ABN 50 009 704 152 (RACQI) and arranged by its agent, RACQ Distribution Services Pty Ltd (RDS) ABN 35 116 361 650, AFSL 567130 and RDS' authorised representatives (including RACQ Operations Pty Ltd ABN 80 009 663 414, AR No. 234978 (RACQO). Conditions, limits and exclusions apply. RDS and RACQO are in the RACQ group of companies. One of the companies in the RACQ group of companies has a minority shareholding in RACQI.
RDS and RACQO have not taken your personal objectives, circumstances or needs into account when preparing advice regarding insurance products and you will need to consider whether the advice is appropriate for you. Read the Product Disclosure Statement (PDS) and any applicable Supplementary PDS before making a purchase decision on this product. You can also access our Target Market Determinations on this website. RDS receives a commission from RACQI for the policies it arranges. RACQO receives fees paid for services it provides to RDS. Further details about remuneration are available on request prior to purchasing.
Banking and loan products issued by Members Banking Group Limited ABN 83 087 651 054 AFSL/Australian credit licence 241195 trading as RACQ Bank. Terms, conditions, fees, charges and lending policies apply. This is general advice only and may not be right for you. This information does not take your personal objectives, circumstances or needs into account. Read the disclosure documents for your selected product or service, including the Financial Services Guide and the Terms and Conditions, and consider if appropriate for you before deciding.
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