Legal Home Loans

What’s your dream car?

Most of us have a dream car in mind, but whether it’s financially achievable is something else. That’s where we come in. We have our top tips to get you not just closer to buying your dream car, but behind the wheel in under 30 days. From the amount that you should look at borrowing to knowing where to make your application for car finance, consult our must-do list before you sign on the dotted line:

  • Get Finance ready!

You may think dealer finance is a good idea, being a one-stop-shop for all your car needs. However, if you compare and do the sums between dealer finance and independent lenders, the latter may be more beneficial in the long run.

Dealer finance can offer interest rates so low that they’re hard to resist. Often there’s a catch which can leave little room for negotiation on the vehicle, which is why you need to consider your options carefully. If you sort out your car loan (which we can help you with!) before walking into a dealership, you’ll have a lot more negotiation power. This way, you’ll be seen as a serious contender not dependent on dealer finance to convert your enquiry to a SALE!

  • ‘Special TODAY ONLY’ deals always have hidden glitches!

Don’t get caught up with ‘special’ deals! Dealership offers can be quite appealing. As mentioned above, dealerships can offer 1% on finance which can really mean “we’ve built the rest of the interest into the price of the car”. As well as that free service deals for 5 years or up to 80,000km can mean the price of the car is less flexible. Particularly with luxury cars, which require dealership service (costing between $450 to $900 each service) to maintain warranty viability, having a free service deal sounds great doesn’t it? Just do the sums! Trust me they have, and they’re never making less than a SIZEABLE profit, especially when luring you into a ‘deal’.

Special deals can save you around $5000 for the first 5 years of owning your car, however they leave little saving off the price of the actual car. An ideal outcome would be negotiating that amount off the sale price and getting your car serviced at an independent mechanic for a much lower cost. Negotiate, negotiate, negotiate! The only way you’ll be able to negotiate this much is by organising your finance externally.

  • Decide if you like the idea of a fixed or a variable rate

Most financiers only offer fixed rates on car loans, whereas some select financiers also offer variable rate loans. There are advantages and disadvantages of having either a fixed or variable rate which must be considered when deciding which to go with. Some people may prefer a variable rate, as it provides the anticipation of potentially low rates throughout the term of their loan. Remember that what goes down must always come up! Beware of the unpredictability of rates and the resulting difficulty to budget future repayments.

A fixed rate not only provides a secure reasonable rate, but also the ability to budget your monthly expenses around your car repayment. Although, you may miss out on the lowest rates offered through a variable loan, the stability a fixed rate provides can be worth it and reduce your monthly financial stresses.

Think carefully about which type of rate suits your budget and circumstance, and speak to a broker for more advice on the pros and cons of both.

  • Chat to our finance team, we know the ins and outs of purchasing more than just property!

Getting a financial broker can help you understand what’s right for you. Legal Home Loans will shop around and find the ideal car loan for you, which can save you time and money (or both really… time IS money). We know efficiency is key and you can’t wait to be driving your dream car!

If you are interested in having a chat with our finance team about your next car loan, contact our brokers on (02) 9030 4020, +61 423 347 562. or email

We look forward to helping you get in that fabulous front seat!

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