Car Loans

Buying a car

Most Australians choose to own their vehicle – it’s simple, straightforward, and it means you can do whatever you like with the car because it’s yours.

A car or personal loan remains a popular form of vehicle finance. You make a set number of monthly repayments and at the end of the loan term – usually three to five years, you own the car outright.

Leasing a car

When you lease a car you’re paying for the use (not ownership) of the vehicle over a set term. Depending on the type of lease, you may have the option of buying the car once the lease expires by making a lump sum payment known as a ‘residual’.

There are two main types of lease – a ‘finance’ lease and an ‘operating’ lease.

An operating lease is like a rental agreement – once the lease term ends you hand over the vehicle and no longer make any payments.

Finance leases are a little more complicated. You pay a set monthly lease payment, and at the end of the lease term you can choose to pay the residual value of the car, or swap the lease over to a new vehicle and continue making monthly payments. Finance leases are popular among businesses because it’s a way of providing employees with cars without making a substantial investment in vehicles, which depreciate rapidly.

A novated lease is a type of finance lease where you – not your employer, take out a finance lease on a vehicle, and your employer makes the lease payments out of your before-tax salary. This type of salary packaging can reduce your taxable income, making it cost-effective for both parties. The downside is that if you lose your job you become responsible for the lease payments, and there is no guarantee your new employer will agree to pay the lease payments on your behalf.

Contact us today to discuss buying vs leasing a car.

We can help you get pre-approval on your car finance whether you are purchasing through a registered dealer or private sale. This means you can start looking for your new car knowing your finances are in order.

Contact us today to discuss your eligibility for car loan pre-approval.

A wide range of vehicle finance options are available to self-employed workers. The key is to determine which one best suits your needs and business cash flow.

One of the pluses of running your own business is that you may be able to claim part of your car’s costs including loan interest, as a tax deduction. This can make your choice of car – and vehicle finance, surprisingly affordable.

Let us help you crunch the numbers and do all of the legwork to find the right loan and lender for you. Contact us today!

Refinancing simply means taking out a new loan to replace your current car loan. It may surprise you to learn that it’s not just possible to refinance your car loan, but that it can also deliver a number of valuable benefits, such as:

• Lower repayments
• Savings on fees
• Additional and flexible loan features
• Access to equity