Q: How much car can I afford?
A: How much car you can afford will depend on how much money you can afford to pay on a monthly basis. Your car payment will be determined by the cost of the car, the interest rate and how long you are financing the car for. A loan broker will be able to determine exactly how much car you can afford and what your monthly payments will be.

Q: How much money will I be able to borrow?
A: How much money you will be able to borrow will depend on your monthly income, your monthly expenses and your credit history. The better your credit and the higher your income, the more money you will be able to borrow. If you have blemishes on your credit, it may reduce your borrowing power.

Q: How much is a car loan going to cost me?
A: The interest you pay is what pays for the car loan. How much interest you pay will depend on a number of factors including how much you want to borrow, whether you're buying a new car or a used car, your credit history and current interest rates.

Q: What's the difference between a car loan and a personal loan?
A: When you apply for a car loan, the car is the collateral for the loan. When you use a personal loan to purchase your car, there is no collateral for the loan. Because a car loan is more secure than a personal loan, you will usually pay less interest on a car loan than you would a personal loan.

Q: What is the difference between leasing and financing?
A: When you finance a car, you are purchasing the car and making monthly payments to a lender. When you lease a car, the leasing company is purchasing the car and is then leasing it back to you for the agreed upon amount of monthly payments over the agreed period of time.

Q: How much interest should I pay?
A: Not all people pay the same amount of interest so there is no one good answer to this question. The amount of interest that you pay will depend on your personal credit history, the terms of your loan and the current interest rates.

Q: Should I consider a mortgage re-draw for refinancing my car?
A: If there is no other way for you to obtain a car loan, a mortgage redraw may be the answer you've been looking for. However, it is important to remember that when you use a mortgage re-draw to purchase your car, you're using your home as collateral for your car loan. That's something that you may regret in the future if for some reason you're unable to make your monthly payments. Instead of just losing your car, you could lose your home.

Q: Can I finance at the dealer?
A: Yes, you can finance at the dealer, but that doesn't necessarily mean that you should. Oftentimes car dealers will get a premium for charging you a higher interest rate. If you want the best deal, you're better off arranging your financing prior to going into the car dealer.

Q: How much of a deposit should I pay?
A: How much of a deposit you should pay really depends on how much of a deposit you can afford. Typically, you should pay the maximum amount that you can afford to pay. Paying a higher deposit lowers the interest that you pay and also lowers your total monthly car payment.

Q: What type of car should I buy?
A: The type of car you should buy will depend on your needs and your lifestyle. If you're single and you don't want to spend a lot of money on fuel, you should buy a smaller compact car. If you have a large family and you need to seat a larger number of people, a minivan or SUV would probably suit your needs better. When deciding what car to buy, look at your needs and then look at the cars that are available that meet those needs. That is the best way to figure out what type of car you should buy.

Q: Will finance companies finance used cars?
A: Yes, finance companies will often finance used cars depending on the year of the vehicle and the mileage of the car. Oftentimes you will pay a higher interest rate when financing a used car because the finance company is taking more of a risk when financing an older vehicle.

Q: Do I apply for my loan before or after I find the car that I want?
A: You can apply for your loan either before or after you find the car that you want. However, when applying for a loan the finance company usually needs to know what type of car you will be looking at purchasing if not the exact car that you need the funds for.