What to Know Before Applying for Car Finance in Perth

1. Understand Your Budget

Before diving into loan options, get a clear picture of what you can afford. Factor in your income, current expenses, and potential loan repayments. Don’t forget to consider ongoing costs like fuel, insurance, servicing, and registration.

Tip: Use an online car loan calculator to estimate repayments.

2. Check Your Credit Score

Lenders use your credit score to assess your reliability as a borrower. A higher score generally means better rates. You can request a free credit report annually from agencies like Equifax or Experian.

If your score isn’t where you want it to be, take steps to improve it before applying, such as paying off existing debts and avoiding late payments.

3. Choose the Right Loan Type

Not all car loans are created equal. Consider whether you want:

• Secured car finance (backed by the vehicle itself, typically lower rates)
• Unsecured personal loan (more flexible, but often higher rates)

Your Perth finance broker can help you weigh the options.

4. Fixed vs Variable Rate Loans

Fixed-rate loans offer stable repayments over the loan term, while variable-rate loans fluctuate with the market. There are pros and cons to both. See our next blog post for a full breakdown.

5. Get Pre-Approval

Pre-approval gives you a clear spending limit and more negotiating power at the dealership. It also speeds up the buying process.

6. Compare Lenders (Or Let Us Do It for You)

Different lenders offer different rates, terms, and fees. As your finance broker in Perth, Hanna Lending compares dozens of lenders to find the right fit for your situation. This saves you time and money.

Need help with car finance in Perth?
Hanna Lending is your go-to finance broker in Australia, helping clients across WA and beyond secure competitive car loans with ease. Get in touch for a free chat today.