Are you in the market for a new car? Plan ahead to avoid any mistakes with some pre-approved finance.
Going direct to the dealership’s finance team for a new car isn’t always as simple as it seems. False and misleading interest rates, expensive document fees and hidden/additional costs can add up, costing you in the long run.
Here are the three main things to keep an eye out for:
- Interest RatesCar dealers know the first question customers ask when financing is “what is the interest rate?”. When a car dealer quotes your rate, this doesn’t include the document fees or hidden costs of the loan, which are added to the total amount being financed on the loan. Most of the time, you, the customer, are being told an interest rate that does not correlate to your monthly repayments on the loan.
- Exorbitant Document FeesWhen financing through a broker, the typical document fee ranged from $400-$600. Car dealers will often charge anywhere in the vicinity of $900 up to even $2,000, which is added to the purchase price of the vehicle when financed. These fees are excluded from the dealer quoted interest rates provided.
- Hidden/additional CostsCar dealer finance may also include hidden fees/additional costs which include monthly or weekly account keeping fees which are also excluded from the quoted interest rates.
What is the best way to go about securing finance on a new or used vehicle, excavator or truck for that matter?
Talking to a broker who has the market knowledge and access to numerous financiers who can get you pre-approved with the best rates in the market will free you up to shop around knowing you are getting the fairest deal possible.
Bentleys Newcastle, through their close association with Magnolia Lane, have access to a Broker that is providing awesome service to our client base. If you need assistance with financing a car purchase please let us know.
Handy tips in buying a new work vehicle – Fringe Benefits Tax:
If you are a business owner who is looking at purchasing a new vehicle for your employee, it is important to consider what type of vehicle you purchase, which will benefit your business in the long run.
Purchasing a single or dual cab Ute, a panel or goods van, a four-wheel drive vehicle, and any other road vehicle that is designed to carry a load of 1 tonne or more is often eligible for exemption.
Additionally, if you purchase a battery electric, hydrogen fuel cell electric or a plug-in hybrid electric (no longer exempt from 1 April 2025) vehicle you will also have exemption.
Talk to us about how you can manage your FBT obligations.