As it turns out, financing companies don't really like lending to people who have a high chance of not paying them back -- no surprise there. Many of these lenders would tell you that your bad credit history or past defaults don't matter in the car loan or car lease game but end up rejecting so many in that particular predicament. If it isn't the bad credit that they're looking at, what exactly is it? How do you know if you're actually eligible for car finance or not?
If you want to get a car lease in Brisbane and in other metros, make sure that you're able to tick off everything in this list:
- Are an Australian resident
- Are at least 25 years old
- Can co-sign with a parent or guardian if under 25
- Have a net income of at least $500 weekly
- Are looking for a lender to finance a car worth at least $5000
Know Thy Self
So you were able to tick off everything in the list? Great! Now what? Now you have to know yourself. How well do you know your financial situation? How much of your income goes to living expenses? Can you really afford the car that you want? Sure, it's easy to tell the specialist on the other line that you can afford $150 per week for a nice family car but do you have supporting documents to prove it?
Remember that lenders will ask for specific documents to support your income and expense claims. Before you start calling car leasing companies, you'd want to prepare 3 months bank and income statements, documents of your liabilities and their balances, invoices of all sources of income (no matter how small), and documents of your assets and their value.
If you want to go the extra mile, and since you have all of your finance documents hand anyway, grab a calculator and start doing the math. Add up all of the costs of your monthly living expenses (rent, utilities, food, etc) with your monthly expense on mandatory charges and liabilities, and then subtract that number to your monthly income. The figure you end up with is your disposable income. If it matches or exceeds the weekly, fortnightly, or monthly repayments of your desired car, your chances of getting approved will be higher. Of course, different financing companies have different ways of assessment but it all helps none-the-less.
When it comes to car finance, make sure that you come in prepared so you don't end up wasting time talking to multiple consultants only to be rejected over and over. As long as you know the basics and your own financial health, knowing if you're eligible for finance and picking the right company to borrow from should be easy as pie. Good luck!