Car Loans
What is a Car Loan?
A car loan is a secured personal loan. The car is used as security against the loan. The car can be a brand new, demo or used. You repay back the loan over an agreed term between one to seven years. Interest is generally fixed over the life of the loan.
We help you shop around for the best deal so you don’t have to.
Personal Use or Business Use?
There are different car loans depending on whether you use the car for personal use or business use.
Personal use means that you use the car predominately (more than 51%) for daily commutes to work and for other personal errands.
Business use means that you use the car predominately (more than 51%) for work purposes. For example a plumber purchases a ute to carry out his work. Some lenders may request for an accountants letter to confirm the vehicle will be use predominately for work use.
Different types of car loans
New car loans
While you patiently wait for your brand new car to arrive let us take care of the finance.
Used car loans
Don’t be put off buying a second hand car. There are competitve loans for used cars bought from either a dealership or through private sale. There is no age limit. Vintage car loans also available.
Business Use car loans
If you are looking to add to your fleet consider a competitve chattel mortgage loan to finance your new or used work vehicle.
Private Sale car loans
Buying a car from a private sale can help you save money. No age limit. Ensure you get the vehicle checked before you purchase.
Green car loans
There are a variety of ‘green’ cars on the market at the moment. There are lenders who have discounted rates for buying ‘green’ cars.
Bad Credit car loans
If you have a below average credit file due to bankruptcy, defaults, bad repayment history, don’t stress as there are lenders who will listen to your story.
Refinance car loans
Did you know you can refinance your existing car loan to get a better deal? Learn how to save on interest for the remaining term of your loan.
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Car Loan Features:
Balloon
Balloons (or sometimes known as residual) is basically a lump sum that is owing at the end of the loan term. The lump sum is pre determined at the beginning of the loan. The balloon option means that you don’t pay off the whole amount which means the repayments are lower. You will need to consider if the balloon option is suitable for you as you would still be paying the same amount interest for the full loan amount. Also when the balloon payment is due you will need to either refinance or pay it out.
Extra repayments
Car loans have the flexibility to make extra repayments. Generally there are no additional charges to make extra repayments. With personal car loans it makes sense to make additional repayments because interest is calculated daily so sooner you pay off the more interest you save on. On the other hand, business car loans (chattel mortgages) the full amount of interest is payable no matter when you pay off the loan. In this scenario it may be best to keep the loan until the end of the term and choose a term that is suitable for you and the business.
Personalised rate
Car loan rates are based on the individual or business’ overall profile. Contributing factors such as length of employment, homeowner or renter, has the business been trading for more than 2 years, will determine what rate is applied on the loan. Also the age of the car is another factor which determines the rate. Older cars tend to attract a higher rate.
Fees
Generally car loans will have an establishment fee. Some lenders will have monthly fees or early termination fees. The fees are generally added onto the loan so therefore you won’t need to pay anything upfront. At Loan Location we will help you compare and find the most suitable option for you.
Flexibility
Car loans have flexible early termination options. Some car loan lenders will have an early termination fee but it reduces over the period of the loan.
GENERAL ADVICE WARNING
Any advice contained in this website is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice in regard to those matters.
