Why finance pre-approval for a novated lease is a good idea

To obtain finance for a car generally involves a number of steps.  Initially, you must find the car and finance type for you, then you have to apply and wait for your finance approval.  Alternatively, having your pre-approved novated lease finance may make searching and purchasing your new car a lot easier.

Below are some of the benefits with pre-approved finance:

You know how much you can spend

Instead of searching for the right car and then sourcing finance for the specific price, a pre-approval will determine the amount of money you can borrow.  This allows you to search for a car within your budget.

Negotiate the best price

With pre-approved novated lease finance this allows you to negotiate on a car from a position of confidence as you know the exact amount of money you can borrow and not get carried away with adding allot of options and accessories to a car,

How do I get pre-approval for novated lease financing?

Many lenders provide pre-approval for novated leases.  They will evaluate your personal finances and offer you an amount of money you can borrow and you can have a clear view on the financial commitment for the term of the lease.

It normally takes 10 to 15 minutes with a One car Consultant to complete an application over the phone.  You will then need to provide some documents for the application – see further details here.

The good news

In most cases, there is no obligation on you to actually use the pre-approved finance.  Which means if you decide not to proceed with a novated lease there is no cost or penalty for letting the pre-approved finance lapse.

Some helpful tips

When searching for a car, it’s a good idea to take into consideration that in most cases, lenders don’t always finance all car types.  For example, most lenders will not provide finance for a car that is to be more than 10 years old at the end of the lease.  Most lenders are happy to finance cars that come from an auction house, dealership or independent used car dealer.

Unfortunately, not all leaders are happy to finance cars from private sellers as there are additional risks associated with such cars.  Although technology and the Personal Property Security Register have reduced the risks of buying a car privately, there are still risks involved compared to purchasing from a dealer.  One Car Group work with a financier that will finance private seller cars so call us to discuss the process if you are looking to buy from a private seller.