So, you’re thinking about buying a new car. Brilliant! But… you don’t have all the cash in your piggybank. If you need car finance, you’re not alone – in fact, it is estimated that 90% of new car purchases involve some kind of financing^#. The good news is, financing your new car doesn’t have to be stressful or complicated when you know what to expect. 

What can you (comfortably) afford?

Before you start car shopping, it’s a good idea to work out a financing budget. There are great resources at moneysmart.gov.au to help you work out your income and expenses and calculate what you can afford in repayments… and still enjoy life. Remember, vehicle costs include more than just the finance repayments – you’ll need fuel, insurance, registration, maintenance, tyres and more, so leave room in your budget for those.

Once you know what you can afford, you can start shopping! This is the fun part – and if you’re looking for an attainable and feature-packed vehicle, check out the Suzuki range. Play with Suzuki Financial Services’ finance calculator to get an idea of your options – with the freedom to explore small cars, SUVs, 4x4s, hybrid cars, colours, model grades, loan types, deposit and balloon amounts (more on that later) to work out what you love, what you can afford, and take the next step.

Know your credit rating

Before your loan is approved, your credit report will be looked at by your lender to assess your risk – including your credit score. Factors that affect your credit score include your credit card limits, paying bills on time (utilities, rent or mortgage, loans and credit cards), and number of credit applications. Find out more about accessing your credit score at moneysmart.gov.au or contact credit reporting bodies like Equifax, Illion and Experian. Don’t get caught out – there are things you can do to improve and protect your credit score.

Understand your loan options

Maybe you want to pay your vehicle off in full as fast as possible, or get your repayments as low as you can. Whatever your plans, it pays to know your loan options. For convenience, Suzuki Financial Services offers finance directly at Suzuki dealerships, with competitive rates and flexible options. There are two loan options available – SuzukiSecure with a Guaranteed Future Value* and lower monthly repayments^{^}, or a Suzuki Financial Services Fixed Rate Loan with longer loan term options. Both loan types offer you great flexibility – including the ability to tailor a loan to suit your needs, with different loan terms (1-7 years for a Suzuki Financial Services Fixed Rate Loan, or up to 4 years for a SuzukiSecure loan), deposit or balloon amounts, and kilometres travelled annually.

Financing with Suzuki Financial Services means you get a transparent finance rate that is tailored to your circumstances. To explore which is right for you, speak to your Suzuki dealer or check out this finance calculator. Learn more about Suzuki Financial Services car finance in this article.

Know your loan lingo

If you’re financing for the first time, you might be unfamiliar with some of the financing jargon. Here’s a guide to a few common-yet-confusing loan terms.

Balloon payment – sometimes known as a residual, a balloon payment is a way to reduce your car loan repayments by making a lump sum payment at the end of the loan term. The balloon amount can be refinanced (subject to lending criteria), so you don’t necessarily have to cough up a chunk of cash when it’s due.

Comparison rate – helps you understand the true cost of a car loan by taking into account most upfront fees and charges on top of the quoted interest rate.

CTP – compulsory third party insurance. With car finance, your lender may require you to have full vehicle insurance.

Drive away price – this is the purchase price of the vehicle including insurance, registration and stamp duty. This amount may vary depending on your state. 

Deposit – an amount paid up front to reduce the total amount financed. Even a small deposit can save you in interest. Check out the difference using the Suzuki finance calculator.

Guaranteed Future Value (GFV) – Some car loan products give you the security of knowing the value of your vehicle at the end of your finance term, upfront. This is called a Guaranteed Future Value (GFV). With a SuzukiSecure loan, the GFV is the amount your Suzuki vehicle will be worth to Suzuki Financial Services at the end of your loan term, provided you have met all loan terms including agreed kilometres and fair wear and tear. You can then choose to keep, trade or return your Suzuki. To learn more about how SuzukiSecure works, check out this article.

Final lap: a recap and roadmap to financing your first car

Think ahead – what are your future plans and will your vehicle (and vehicle finance) still suit your needs? If you need more flexibility down the track, a SuzukiSecure loan with a Guaranteed Future Value gives you the freedom to trade in your vehicle for a new Suzuki at the end of your loan term. You can also choose to keep or return it if you prefer. Want a longer loan term? A Suzuki Fixed Rate Loan can be tailored from 1 to 7 years.

Know your options – understand the different loan structures, including deposit and balloon, loan terms and fees.

Know your budget – save yourself the heartache of falling in love with a vehicle you can’t afford by working out your budget before you start shopping. For affordable, enjoyable and feature-packed vehicles, the Suzuki range is unbeatable. Check out our build & price tool and finance calculator to get an idea of potential repayments.

Understand your finances – check your credit score and report before you shop, in case there are any issues you need to get on top of. You can find out more at moneysmart.gov.au.

Read the fine print – Don’t skip it; your loan terms form your contract with your lender. Read all your finance documentation thoroughly before signing to ensure you understand it. If you’re not sure about something, ask!

Have fun! Buying a new car is one of the most exciting and enjoyable experiences, and you never forget your first. Choose a vehicle that will embrace all parts of your life, from weekday commuting to weekend adventuring. And with Suzuki Financial Services on your Suzuki ride, you’re able to relax and enjoy the road ahead! Happy hunting.