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Set a Realistic Budget
- Consider total running costs like insurance, maintenance, and fuel, not just repayments.
- Keep car payments under 20% of net income where possible.
Decide on Deposit vs Trade-In
- Deposits reduce your loan amount, saving on interest. Selling your old car privately often nets more than a trade-in.
- Hanna Lending can help structure your deposit or find a refinance solution.
Understand Loan Types & Terms
- Secured loans: Lower interest, easier approval.
- Unsecured loans: More flexible, better for grey imports or classic cars.
- Loan terms usually range from 1 to 7 years. Always check for early repayment fees.
Credit Score & Pre-Approval
- Check your credit score early. Pre-approval isn't essential, but it helps guide your budget. A broker can provide tailored quotes based on your circumstances.
Document Checklist
- Most lenders need 100 point ID, proof of income, and for private sales, proof of vehicle ownership.
Insurance Is Essential
- Full comprehensive cover is required on financed vehicles, with the lender listed as an interested party.
Use a Broker Advantage
- Hanna Lending Services works with over 30 lenders to find competitive rates and loan options, even if your credit isn't perfect.
Final Tips
- Avoid stretching your budget. Calculate monthly repayments with care.
- Ask about balloon payments, total interest, and early payoff terms.
- Use Hanna Lending's repayment calculator to plan confidently.
Getting into your first car doesn’t have to be overwhelming. With a solid plan, the right loan advice, and an understanding of what to expect, you’ll be better prepared to make a smart financial move that suits your lifestyle and budget. Contact our team today to learn more.
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