Skoda Dealership Financing Options for Australian Buyers
Buying a new car is an investment your bank account will be feeling for the foreseeable future, but that doesn't mean you have …
Skoda Dealership Financing Options for Australian Buyers
Consumer & Commercial Loan
A consumer & commercial loan is a simple exchange that means you own the car: you just have to pay for the principal amount, plus interest, until the car is paid off over a set term. This type of financing plan means that at the end of the term, the car is yours to keep. Instead of paying a bulk payment upfront to buy a car, all you have to do with a consumer loan is agree to the term contract and keep up with payments. You can even speed up your car ownership - and keep interest rates down - by agreeing to a balloon payment at the end of the term.
Financial Lease
A financial lease is almost like a consumer loan, but not quite. The key difference between the two is the fact that, with a lease, you aren't paying money to eventually own the car. Instead, you're paying money to use the car for the term of your contract. This might be a better option for several reasons. For example, a financial lease often has less expensive monthly payments. A financial lease might also be preferable to drivers who know they like the best new thing, as a financial lease allows you to upgrade your car at the end of the term for the latest model.
Skoda Choice Guaranteed Future Value
This is a financing option that lets you know what the value of your car will be by the time you get to the end of your contract term. Why does this matter? If you're planning on owning the car through a consumer & commercial loan, then knowing the guaranteed trade-in value when the car is a few years older gives you a better idea of what choices you can make with the car after your term. Some people choose to use this guaranteed future value to predict the wisdom of trading in their cars in the future.
Your local Skoda dealer wants your business, so they definitely want to work with you and your budget, whatever that may be. If you aren't sure about what your money is going to look like or what you can afford, then you might want to check out Skoda's financial calculator - this might help you narrow down the choice between a consumer & commercial loan and a financial lease. You should also consider logging the guaranteed value of the car so you know what you can expect in the future and plan accordingly.