Car Loans (Consumer)

Car Loans are a personal finance product. The financier lends the customer funds for the purchase of a vehicle. And secures the loan against that vehicle.

A Car Loan is can also be known as a Consumer Loan or a Secured Car Loan.

How does a Car Loan work?

The financier or lender of a car loan, advances funds to the customer to purchase a car.

The customer takes ownership of the vehicle at the time of purchase contract or loan agreement. The financier takes a registered interest in the vehicle as security for the loan.

When afinance contract is fully paid out, the financier lifts their registered interest in the vehicle. Now the vehicle has a clear REVS check. And the customer is said to own the car outright.

Benefits of Car Loans

  • Flexible contract terms ranging from 24 to 84 months (which is two to seven years)
  • A balloon value can be applied to the contract enabling the monthly repayments to be tailored to a budget
  • Choice of fixed or variable interest rates on the loan
  • Deposit (either cash or trade-in) may be used
  • A tax deduction is available when the vehicle is used for business purposes
  • The loan is secured against the vehicle, allowing lower interest rates

Who does a Car Loan Suit?

A Car Loan is suitable for individuals who wish to purchase a car. Or do not have significant business use of their vehicle for the option of Novated leasing (salary packaging).

Tax Implications of Car Loans

As a Car Loan is a personal finance product, only normal tax deductions for depreciation and running costs can be claimed. Only on a pro-rata basis according to the percentage of business use.

Use our handy loan repayments calculator or call us to discuss what repayments suit you. Remember you can always have a payout balloon and the end of the loan term. Doing this will keep the regular installment payments down.

Contact us immediately via phone, email or leave a form and we’ll call you back. Drop into our office at Baulkham Hills for a chat. Yes, a Coffee Club franchise is downstairs in the building so we can meet there too. We can discuss your car loan options.


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