Many deals sound too good to be true - generally because they are. Most zero percent car finance offers certainly fall into that category. They are a fantastic marketing strategy & one the majority of new car franchises have tried. This isbecause the simple fact of the matter is they increase enquiry rates at dealerships - but they are seldom a good deal for customers. Remember the dealer always wins!!!
Zero percent finance is actually a form of 'sub-vented finance' - where the interest is actually paid indirectly to the financier. In practise, how this works is the dealer pays the interest to the financier from the profit out of the sale of the new car. This is why, when a purchase is completed using a zero percent offer, there is little room, if any, to negotiate on the price of the vehicle (this means you are more than likely paying full RETAIL price for your new car).
When choosing finance it is essential to look at the deal from every angle, rather than do what the marketers want - which is to see you focus exclusively on the zero percent (very attractive we know)!!
On most occasions, it is almost always cheaper to negotiate a great discount on the price of a new car, and arrange the most affordable independent finance available in the market place.
Australian Car Financiers – Major Banks
When it comes to interest rates, every lender uses a different formula to determine what interest rate they’ll offer you. Different lenders also have different lending criteria based on the customer, the vehicle, the vehicle’s age, and the seller. It’s a complex business environment – and we make it simple
That’s why, at Loyalty Loans we approach a range of very reputable Australian lenders to provide you with real choice. Our processes ensure that you get a great deal tailored specifically to your circumstances.
With the help of an experienced and more importantly qualified finance specialist, getting a car loan does not need to be difficult, challenging or complex. We can advise exactly what is required and help make the processes and paperwork easy.
Loyalty Loans will often beat the banks by offering you a lower interest rate. This either increases your effective spending power by allowing you to borrow more for any desired level of repayment, or it cuts your repayments at any particular price point. Either way, you will always win.
Banks often charge higher car loan interest rates because they’re not just specialist car finance providers, and also because of their high internal overheads and administration costs. Loyalty Loans have very low overheads and extremely efficient internal structures and processes specializing in car finance, which allows us to keep our costs low.
Additionally, some banks and other lenders may have restrictions when providing some car loans. If you purchase through a dealer you may obtain the benefit of getting a reduced interest rate on a secured car loan. But if you buy from private seller, you might find yourself paying a much higher rate for an unsecured loan. At Loyalty Loans we offer a lot more flexibility.
Our pool of reputable Australian lenders include:
A major player in the car finance market – especially since many US-backed lenders left the Australian finance industry during the Global Financial Crisis. Macquarie took over GMAC and Ford Credit, which means today Macquarie Leasing has a significant presence within car dealerships at both the retail and wholesale level. Macquarie understands cars and car financing, and offers a great range of products.
Esanda is owned and operated by ANZ Ban, they are one of the more experienced lenders in the automotive industry. Esanda has had many years heavily involved in the car finance industry and has a range of innovative products and services for both business and private car buyers.
This financier tends to specialize in car loans for vehicles purchased through mainstream new-vehicle dealerships. (Dealerships such as Mitsubishi, Toyota, Holden, etc.) Capital Finance is a specialist in this area with a range of well-developed finance products, but may not generally finance vehicles from other sources, like non-franchised used car dealerships, auctions or private sales.
Bank of Queensland:
One of the ‘big four’ banks, BOQ are a real option to consider if you are buying a car less than five years old from a licensed dealer.