Why car loans are killing your borrowing power

Hi I’m Richard Jeffries from Newbridge
financial services, I started mortgage broking over 15 years ago and one really
big thing that we’ve noticed is that people often take out a loan to purchase
a car before buying property and don’t realize just how much that can hold them
back from buying that dream home that they want so in this really short video
we thought we’d take you through how much of an impact it can have by
applying for a car loan versus maybe paying for that car in cash if you’re
able to if you have a look at the example up on the screen couple
one does have two car loans the car loan each whereas couple to couple
to do not have a car loan so you can see the impact on the borrowing power couple
to being able to borrow almost two hundred thousand dollars more because
they haven’t applied the finance for that vehicle so the next time you’re
looking at property and maybe looking to buy a car before that maybe just take
into account how much that by borrowing for a car will affect your borrowing
power and of course the other thing to remember is with cars is that once you
do purchase them they start to decline in value and often they will decline at
a faster rate then you’re paying down the loan that is attached to them so you
may end up in the position whereby you’ve got a car worth much less than
what the debt is that it’s owing against it I’m Richard Jefferies we really hope
this video has been a benefit to you and if you’d like to know more visit our
website at NBFS.com.au

Paul Whisler

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