Dealer Car Finance
It might be more convenient or easier to get car finance from the car dealer, but it may not be the best deal! Banks, credit unions and other financial institutions usually will be cheaper and more flexible.
If you sign anything at the dealership, it will probably be a contract of sale.
You may also sign a car loan application or car loan contract.
A contract is legally enforceable, so make sure you read it carefully before signing. Don’t sign unless you understand what you are signing and you’re certain that you’ll be buying the car. If in doubt, always seek further advice.
If a dealer asks for a holding deposit, make sure you get a receipt.
If you’ve decided to buy a car, but your loan hasn’t been approved, then make sure that the approval of the car loan is written into your contract as a condition. This will get you out of trouble if you can’t get car finance.
If you do arrange to get a car loan through a dealer, you have a right to a one-day cooling off period. This applies when you purchase a car from a dealership and they:
- arrange your loan for the car, or
- supply application forms for (or a referral to) a credit provider.
The cooling off period begins when you sign the contract and ends at 5pm on the next business day for the dealer. You can negotiate an extension or waive the cooling off period, but it’s always a good idea to keep the cooling off period to safeguard your rights.
During the cooling off you can cancel the contract, for any reason, by giving a signed, written notice to the dealer. If you do cancel, you will have to give the dealer $250 or two per cent of the purchase price – whichever is less.
If you would like to discuss car fiinance with a finance consultant, please feel free to contact Platinum Car Loans on 1300 554 553 to discuss your individual car financing requirements.
