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More than *60 per cent of young Australian's still list buying a dream car as one of their big life aspirations, according to research recently undertaken by NAB.
NAB Regional General Manager Consumer Banking, Andrew Maitland, said the figure was an important reminder that people should do their research before locking themselves into a car loan.
"Aside from a house a car is one of the bigger purchases a lot of us will make in our lifetime so it really is worth taking the time to find a loan that suits your financial needs," he said.
Andrew said there were five key points to remember when financing your dream car.
1. Take a good look at your budget - list all of your debts and monthly repayments so you know how much you can afford to pay off a car loan each month.
2. Do your homework - know the market value of the car you want to buy and understand any additional on road costs such as registration and insurance.
3. Sort out your finances before you go shopping. Getting a loan conditionally approved before you go to the car yard could help you avoid spending more than intended.
4. Check if your preferred car loan allows you to make additional repayments or pay it out early without incurring additional fees.
5. Think about the total loan package before you make a decision. Interest rates are usually top of mind but it's also important to know that you will get the service you need during the term of the loan.
"Speaking with a banker and getting your loan conditionally approved before you get to the car yard could also help you shop with confidence," he said.
"Having your loan conditionally approved in advance is almost like shopping as a cash buyer, you have a clear picture of what you can afford and this should help you avoid driving away with a car that's beyond your budget."
NAB's website offers an online budget calculator and car finance calculator that could help people who are in the market for a car loan - visit www.nab.com.au
For further information, please contact:
Rebekah Miles
National Australia Bank
Ph: 0400 541 139
* From the NAB Big Life Survey conducted in June 2007.
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