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How a Novated Lease Benefits You Financially
All Your Expenses are Rounded into One Payment
Unlike a traditional purchase, all the expenses associated with your Novated Lease Stratton Finance are made in one payment. Your expenses regarding care for your vehicle, maintenance on your vehicle, and your lease payment are all made in one payment each month. It’s a more affordable way to make a vehicle purchase as it allows you to see what the overall cost of the vehicle is before you commit to ownership of the vehicle.
Your Payments Are Always Made on Time
With a novated lease, your employer is the one making the payments. These payments come from your income, but your employer is the one taking the money for your novated lease out of your income before you ever see it. This means it will never be used for anything other than making your lease payment. You’ll never miss a payment. You’ll never fall behind on a payment. It helps your credit to go through this process, which is a significant benefit for anyone struggling with this financial situation.
You Save Money
Buying a car doesn’t sound a lot like saving money, but that’s what happens when you go through with a lease like this. Part of the money used to make your purchase comes from your pre-tax income. This means your taxable income is lower, and you’re saving money on your taxes as a result. The entire novated lease payment is not made with pre-tax income, but a significant portion of it is. You get to save money and drive a new car. Those are significant benefits.
When you go through with a lease of this nature, you get to own the car yourself. It’s not in your employer’s name. it’s not a company car. It’s a personal car just for you, and it’s yours to drive when and where you want. There are no limitations on your ownership. It’s just an agreement your employer makes to help you purchase a new car.
What to Do If You Are Denied a Car Finance Loan
The number one reason people are turned down for car financing is their negative credit history. Australian residents are expected to pay their bills on time and stay on top of their financials, but that’s not always the case. There are some very common reasons you might be denied the car finance you’re looking for once your credit history is viewed by the lender.
– You have many late payments on your credit history report
– You have too much credit card debt
– You didn’t make payments to creditors
If you’re looking at a denied Car Finance Stratton application and know you’ve not made late payments, missed payments, or used too much debt, you might have some errors to fix on your report. Now is the time to contact Veda Advantage so you can see a copy of your report and fix the errors that have been marked on it. Sometimes human error is unavoidable, and you cannot help but take time out of your own life to fix mistakes caused by others who made a mistake.
Lack of Income
You must have enough income to purchase a car and get car finance loans with a lender in Australia. If you’re not working, you’re not getting a car. If you’re not able to show you have an income because you’re paid cash, you’re not getting a loan. If you were laid off, you’re not getting a car. You do have the option to use another asset in your name as collateral to get some car finance approvals from lenders, but now you are risking that item.
Tips to Help You Seek Car Finance
Before you look for a loan for a new car, check your credit. If there are mistakes, dispute them and have them corrected. Get your financials in order, too. If you can prove you do have income and that you are working hard to get your financial life in order, you might find a lender willing to work with you on the car finance portion of your shopping experience.
Bad credit financing is available with certain lenders, but it’s not going to do you any favors to look for bad credit financing if your score is incorrect or if you really cannot afford it. Try exhausting your other options before you seek approval from a bad credit lender. Just because they issue approval for a loan doesn’t mean they’re the best option.
What to Do if You Have Been Getting Turned Down for Car Loans
Buy in Cash
Of course, one alternative to taking out car loans to buy a vehicle is to buy it in cash. Naturally, it’s probably going to be hard to come up with the cash to purchase a brand new vehicle with cash money, but you might be able to save up and buy a used car from a private seller. Then, you can drive that car until you are able to improve your credit score and purchase a car with a loan.
Get a Co-Signer
If buying a car in cash just isn’t an option but if you aren’t able to find any car loans that you qualify for, you may need to look to your friends and family for help. If you have a family member who has good credit, for example, he or she might be able to co-sign with you to help you secure a Car Loan Stratton at https://www.strattonfinance.com.au/car-finance/car-loan. However, you should know that if you default on the loan that your loved one’s credit score could tank and that he or she could be held responsible for making the payments. Therefore, it is important to be very responsible with your loan if you do take this route.
Look for a Lender Who Works with People with Bad Credit
Even though it might not seem like it, some companies that offer car loans actually specialize in working with people who have poor credit. They might have stricter guidelines for some things, such as income, and you might have to pay a higher interest rate on your loan. However, working with one of these lenders could make it possible for you to buy a car that you might not otherwise qualify for. Plus, if you make your payments on time, you might be able to build up your credit score at the same time. Then, you might be able to qualify for other car loans next time that you look to purchase a vehicle.
As you can see, even though car loans can sometimes be hard to get if you have bad credit, it is not impossible to buy a car. If you try these tips, you might find that buying a vehicle is actually a possibility for you after all.
Helpful Car Loan Tips
Selecting the ideal car loan in Australia can sometimes be complicated. If you want to pick the right loan for your specific situation, you have to put a lot of time into the matter. It can be a mistake to choose a loan rashly and quickly. A loan is something that stays with you for a long period of time. That’s the reason choosing the wrong car loan can be such a disaster. If you want to make a wise and informed car loan decision, these tips can help you in a significant way. A good loan choice doesn’t have to feel like a distant concept to anyone.
Focus on your credit history. A strong credit score can go a long way for people who want to secure great car loans. High scores indicate that you cover your bills on time. They indicate to lenders that they can put their trust in you. If you like the idea of reduced interest rates, you need to focus on strengthening your credit score. Reduced interest rates can pave the way for decreased monthly payments.
Don’t apply for many loans at the same time. You should refrain from applying for many Stratton Car Loan simultaneously. If a financial institution checks your credit, it can be detrimental to your report. That’s why you should keep these credit checks to a minimum if at all possible. Look for websites that provide people with credit checks that don’t cost any money at all. These free credit reports can help you avoid the hassle of constant credit assessments and associated damage.
Learn about unsecured and secured vehicle loans. Once you receive approval, you need to find out whether or not you have an unsecured or secured loan. Don’t sign or give your approval to any loan until you know this vital detail. Secured loans can be linked to possessions such as vehicles. They can, as a result, in some cases bring on vehicle repossession. If you want to avoid this kind of nightmare scenario, you need to be extremely thorough. It’s critical to understand the difference between unsecured and secured car loans and how they operate.
Learn about potential repayment penalties. If you happen to receive money out of the blue, you may feel the desire to complete your car loan and never have to think about it again. Don’t complete it, however, until you’re 100 percent sure that you don’t have to cover any pesky repayment penalties. Some lenders tack on repayment penalties that are rather steep.
Give yourself ample time. Automotive loans are a big deal. If you want to get a loan that makes you feel comfortable and at ease, you need to have plenty of time on your side. Don’t rush to commit to a car loan. Rushing can only make matters worse. It can make you regret things later on, too.