Getting a used car makes more sense when you’re a pensioner at Centrelink. Since used cars a cheap than any other recently launched model, you tend to enjoy tons of benefits. One such benefit is that with lower prices comes low loan amounts. It isn’t difficult to obtain a loan when the only source of income for you is the pension, but repaying the payments can sure be challenging. However, one of the setbacks of used car loans is that it comes with a higher rate of interest as compared to a new car. As the cost of the used car is less, the bank doesn’t get to gain any profit out of the loan, which is why they tend to charge higher. Think about the amount of loan for a new car vs. one for an old and used car. Looking beyond the fact of higher interest costs, there are several other benefits of getting pensioner car loans for used cars.
Benefits you get after applying for a used car loan
Applying for an availing of a used car loan is as simple and hassle-free as getting a new car loan. The restrictions are minima, provided the borrowers have a source of income so that they can pay the loan on time, which in your case would be your monthly pension. Used car loans can be secured for a minimum of one year and a maximum of seven years. Some of the benefits of applying for a used car loan is:
- You enjoy lower EMIs as the loan amount is lesser than one for a new car. Therefore, the amount to be repaid monthly is immensely pocket-friendly.
- Most financial institutions offer you to choose flexible repayment tenure.
- A few banks or non-banking financial institutions approve 100% of the required loan.
- An uncomplicated process comes with minimal paperwork. Well, nowadays, everything happens online.
- Approvals and disbursements are done quickly while at attractive interest rates.
- Rebates and features are somewhat similar to new car loans, however, it’s a lot hassle-free.
Are there any hidden charges?
One of the common challenges many credit applicants face is hidden charges. This little inconvenience boils down to how you chose the financing partner. Be it a Centrelink loan for car, it can turn out to be really shocking when you reach the final steps of the loan process.
Some financial institutions or banks charge processing fees, documentation charges, registration certificate collection, stamp duty, etc. initially, however, a few of them already warn you about these extra bucks. Besides, you may also get to experience a foreclosure penalty levied if you plan to close the loan before it matures. In case of the delayed monthly payment, your credit score may get affected along with a penalty on interest. At times private lenders charge an annual maintenance amount, which definitely adds up a good amount to your repayments.
Need a safer option?
Looking through a few of the facts, benefits and disadvantages of getting pensioner car loans for used cars, you may think of eradicating the thought. But, before you do that, here is one of the best alternatives that not only save you from all the process of going through Centrelink loan for car, but also puts no burden on your pocket, that is, Rent to Own. Rent to Own is fairly a new concept, but it ensures that pensioners are never troubled over the loan system. Freedom Cars is one place where you can find all your convenience of owning a car whenever and wherever you want. To know more, visit Freedom Cars now!
Source URL: https://www.freedomcars.com.au/
