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.