Car Loans Australia is set up for the sole purpose of providing free information on what you might need when applying your car loan in Australia. If you’re a first time buyer or have no prior experience with applying for a car loan or buying a car in Australia, then you’ve come to the right place.
Our goal in Car Loans Australia is pretty much to make your life easier by providing you with this information so that you can get some of the best loan deals and help Australians get low interest rates!
Need further explanation between a car loan and a personal loan?
Car Loans
For secured car loans Australia, they are divided between secured car loans and unsecured car loans. A secured car loan is a loan in which the financier helps lends money to you for the purpose of buying a vehicle and also possesses security over the vehicle in order to protect the aforementioned loan. Once the loan is completed and paid for, you as the customer will have full ownership of the vehicle. A secured car loan normally comes with lower interest rates as your vehicle is secured by the financier itself. You will also find that tax deduction criteria’s can be applied should you use the vehicle for business only.
Personal Loans
For personal car loans Australia, you as the customer will borrow money in general which you can of course use to buy a car. It is different solely because the financier has no security over the loan money and is often used to purchased cars that are slightly older or do not meet the criteria set forth by a secured car loan. A cash deposit is normally required and your interest rates are either fixed or variable depending on the financier. Personal loans however are one of the least stringent loans that you can easily get an approval for. Only normal tax deductions for car depreciation and possible running costs are valid to be claimed.
What is hire purchase and novated lease?
Commercial Hire Purchase
To put it simply, you are hiring the vehicle from the financier for a fixed monthly sum over a period of time. You do not own the vehicle as it is first bought by the financier until you have paid in full or the associated interest for the hire purchase.
Novated Lease
A novated lease is sort of an 3 way agreement between, you, your employer and the financier in question on how the car is being paid. Your company pays the lease for you via from your salary as part of a salary packaging deal.
So How About Getting That Approval?
There are certain criteria’s that will be checked when you do decide to apply for financing for a car. This is of course based on what particular way you intend to finance your vehicle. Criteria’s most commonly looked at when applying for personal or secured car loans include; if you’ve ever filed for bankruptcy, home ownership, employment duration, the duration in which you’ve lived at your current residence, your total net worth and several other minor details.
Car Loans Australia also has several reference websites that can help you get the best competitive loan rates that are either fixed or free, allowing you to plan ahead or profit from free falling interest rates yearly.