With The Delay In New Car Shipments, Consider Switching Out Your Balloon Payments

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With The Delay In New Car Shipments, Consider Switching Out Your Balloon Payments

Posted on , updated on by carbroker

For the past couple years, we’ve been going through a dry patch. Nope, not in terms of rain – we’ve been good on that front. The dry patch we’re referring to is all about new cars.

It’s been tough getting the car you want in Australia, thanks to a global shortage in semiconductor chips which all cars use. And it can also be tough getting the right finance for it. But don’t stress on that front because, today, the team at Carbroker.com.au provide some top tips on navigating finance during the chip shortage.

Oh, and if you came here to learn about Doritos, you’re in the wrong place.

Switching out your balloon payments

There are plenty of reasons to switch out balloon payments for alternative options when navigating the delay in new car shipments. Here’s why:

  • Riskier option
    In a time of uncertainty, the last thing you want is more uncertainty. That’s what comes with balloon payments if you’re not 100% sure that you’ll be able to afford it when the time comes. And if you’re not buying the car of your dreams (because of the delay in new car shipments), then why increase the risk for a car you may only have for a year, two years or three years?
  • Defaulting on your balloon payment isn’t great
    If you default on your balloon payment, there are a couple of negative implications. For one, you may have to refinance it, leading you into a cycle of debt. For another, you may be forced to sell the car, leaving you without a car and still in debt. The loan provider may not approve of refinancing if you default the first time.
  • What if an ever better car becomes available?
    Let’s say you’re thinking of upgrading, but your dream car isn’t available due to the new car shipment shortage. If you go all out on a loan with a balloon payment for a car that your heart isn’t totally set on, you could be risking a lot for something that doesn’t matter that much to you.

Alternatives

There are a few alternatives to agreeing to a balloon payment in order to secure your next car. A novated lease is probably one of the most practical options.

A novated lease is when your employer agrees to lease a car on behalf of you, with the repayments coming out of your pocket. The beautiful thing about a novated lease is that the repayments come from your pre-tax salary, allowing you to see a big benefit in the reduction of your payable tax at the end of the financial year. And if you want to switch cars when a better one becomes available, you simply transfer your lease.

Still not sure of which option of finance is best for you? Get in touch with the team at Carbroker.com.au. They’re Australia’s expert team in car brokerage, finance, insurance and more

Testimonials

Just a note to say a HUGE THANK-YOU for your services. You were very prompt in replying, and saved us $3000 on the purchase of our new car (almost 10% on the total cost of the car). With a young family, that's a huge saving for us. Thank-you again.

K.S., Brisbane

I haven't met you in person but felt like I knew you for ages. I really appreciate for the great help and assistance right through the process. I got my car yesterday. I Thank you once again for the best customer service. I will call you later. I just can't believe that computer technology and modern technology has really made the process quicker than I ever thought without compromising on service.

W.F., Melbourne

I picked up my new Nissan Patrol on Friday afternoon. I would like to thank you for all the work you did on my behalf and the fantastic price you secured my new car for. It was so good not to have to do the rounds of the car yards and try to beat car sales people at what they do best. Your website was also great with tips on how to sell my other car as well as all the other information available on it. The dealership was very professional as well and the car was ready as promised and in a very nice condition.

B.W., Queensland

Thanks for your help. Must admit I was very sceptical in dealing 'on line' with an unknown person/company. As a single woman I don't want the hassle of going backwards and forwards, playing one dealer off the other. I used the internet to get a measure of what's reasonable and then it's 'give me your best price' no second chance. Some people can't get their head around that but life's too short. I only want to deal with ethical people. I'm happy that a salesperson makes a profit but it has to be fair for both parties. Thanks and I'll be recommending your site to friends.

M.F., Brisbane

Thank you for the service. The advice was good and the price reasonable. The dealer came to me at work both to value the trade in and to deliver the new car.

T.A., Melbourne

Thanks for the quote. I am kicking my self slightly. In the weekend I went to my local dealer to test drive the car and was offered exactly my spec with 1500km on the clock. 3 months old for $55K (the GMs car). I had to make a call on the spot because another chap was also looking at it. I thought this would be pretty hard to beat so i went for it. If i had waited i guess i would have an absolutely new car and with 12 months worth of rego not 9. We live and learn. Next time. Thanks and regards

W.D., Sydney

I was pleasantly surprised when I saw the discounts of RRP that the dealer was putting down, more than made up for the cost of the fog lights and the paint protection which I optioned in! I signed the dotted line and bought my first brand new Hyundai. I will take delivery less than a week after signing, which I find quite impressive.

S.B., Sydney

Living overseas but about to return to Australia, we found that buying a new car was going to be a daunting process. Carbroker.com.au took all the hassle out of it and came up with a very competitive price as well. All we had to do was choose the model, pay a deposit and then pick up the car as soon as we arrived back in Australia. This is a great service for expats who are returning to Australia

P.H., Yamba

I've been with the RACV for over 10 years. I just didn't realise what a premium I was paying for the service. Going with your car insurance recommendation and the roadside assist is saving me several hundred dollars every year!

C.A., Ballarat

I just want to say thank you for all your effort in getting me a good deal on the car. I managed to save close to $6,000 from the initial quote given to us by a Toyota car dealer. I am very happy with your service and will surely recommend you to all my friends who are keen to buy a new car.

N.A., Victoria

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