Best Car Finance Deals
Car finance is not just that, there are several good options that can consider whether you are a private PAYG person or if you are in business. Car loans can be similar to Personal Loans, however keep in mind that the car being purchased acts as security for the loan. A secured car loan is going to be at a cheaper interest rate than an unsecured loan. This is simply because the bank is able to use your car as collateral security with a secured loan. Having your car as security means that if you default on your loan repayments your car can be seized.
In order for the car to be eligible to be security it usually must meet certain criteria.
Compare these examples:
- New – cars may have to be brand new and purchased from a dealer only. New car loans generally have lower interest rates.
- Used – can be limited to cars less than seven years old for some lenders and for many used cars the minimum loan amount may have an impact.
- Minimums – secured loan minimums (the borrowing amount, not the car purchase price) can range from $4,000 to $10,000 for car loans.
Find out below the difference between a secured or unsecured car loan and remember, it pays to compare when it comes to car loans, Mortgage Fastrack will help you with the best car finance deals.
If you are PAYG employed or you own a small business consider these options
A car lease can be a bit like renting a car for a period, with the option of buying it at the end of the lease for a residual – that is, value or percentage typically agreed up front.
Car leases can be ideal for:
•Consumers whose employer offers salary package for cars through a Novated Lease.
•Businesses who don’t want to lock away capital owning a depreciating asset.
Call John at Mortgage Fastrack to help find you the Best Car Finance Deals Available.
0412 661 188
Hire Purchase is often called Commercial Hire Purchase, this particular option is where the financier buys the car, and you hire it from them for the agreed term. Similar to a lease, you can nominate a large payment at the end of the agreement but this is not mandatory.
A Hire Purchase is designed for companies or individuals who use the car for business purposes.
This particular mortgage is a car finance option suitable for businesses, where the car (the chattel) is being purchased but is used for business more than 50% of the time.
The way it works is the business takes ownership of the car straight away without having to lock away capital in the purchase, yet you can claim tax eligible benefits on the vehicle. You do have the choice to include a payment at the end of the term in order to reduce repayments but this is optional.
This loan option is preferred by many people, it allows you to borrow a one-off lump sum and make regular set payments to pay it back. You can choose to spread your repayments over a term of between one to seven years. The longer the term means the smaller the repayments you make.
A personal loan does not work like a home loan as you cannot redraw the funds you have repaid (even if you have paid back more than the minimum required) and surplus credit cannot be used for other purchases with this loan.
Many personal loans have a minimum value, which can vary from $1,000 to $10,000 depending on the lender. Some loans are unlimited and some are capped at $25,000.
Personal loans can be secured or unsecured, which is where a purchased item is used as security against the amount borrowed. If your loan is secured this can reduce the interest rate and influence the maximum amount borrowed.
If you require more information, call John Hartney of Mortgage Fastrack who has a vast experience and background in financing cars and any vehicles and he will update you on the best car finance deals available.
Call now 0412 661 188