Car Finance Tips - Are you looking for car loan?

Finance

There are many different ways to finance your next vehicle dependant on whether the car is to be used for private or business use so please consult your financial advisor. The options below are just some of the most popular ones.

Leasing

Leasing is a good option for any business or individual if the vehicle is used predominantly for business purposes. A lease gives you immediate use of the vehicle without having to arrange a large deposit. Rentals are fixed for the term of the lease, providing security for your financial planning. There are predominantly 2 ways of leasing a vehicle

Operating Lease

An Operating Lease is basically a long term rental. There are different types of Operating Lease namely non or fully maintained. At the end of the lease period you simply hand the vehicle back.

Novated Lease.

A Novated Lease is an agreement that exists between employer, employee and the financier. There is an obligation from your employer for the repayments to be made by out of the employee’s pre – tax salary, however the ownership of the vehicle is retained by the employee.

Commercial Hire Purchase

A Commercial Hire Purchase is for any business or individual in which the vehicle is used predominantly for business purposes. Regular payments are made over the term, from your choice of one to five years.

Chattel mortgage

A Chattel Mortgage is for any business or individual who is registered for GST, that wishes to purchase a new or used vehicle which will be used predominantly for business purposes. This is a fixed loan that provides for the purchase of a vehicle in exchange for a series of payments. This product allows you to claim the GST involved in the purchase, in full, in your next Business Activity Statement.

Flexibility is an attractive feature of a chattel mortgage. You can choose to finance the total purchase price, use a deposit or trade-in or add a final lump sum balloon payment to reduce the loan repayments. You can even use the input tax credit to contribute towards paying off the loan, thereby reducing the amount financed and the interest paid over the term of the loan.

Personal Car Loan

A Personal Loan is designed for individuals who want to use their car mainly for private purposes, and for whom private ownership is important. These can be arranged via your financial institution. A Personal Loan is generally over 1 – 5 years. At the end of the loan the vehicle is your property.