Car Loan

 

About Car Loans

 

Personal car loans are ideal for people who want to buy a car but don’t have the money to pay for it upfront. By taking out a personal car loan, the borrower can spread the cost of the car over a period of time, which can make buying a car much more affordable.

When you take out a personal car loan, you will agree on a repayment schedule with the lender. Choose a loan amount that you can afford, and a repayment schedule that fits within your budget. The lender will usually charge a certain amount of interest on the loan, so be sure to take that into account.

There are fixed rate and variable rate personal car loans. A fixed rate loan will charge the same amount of interest over the life of the loan, making it easier to budget. The interest rate on a variable rate loan will vary according to the market and the lender – great if rates are low, not so good if rates are on the rise.

There are also secured and unsecured personal car loans. A secured personal car loan is usually secured against the car, where the car is used as collateral. This can make the loan cheaper and easier to get approved for as it is deemed less of a risk to the lender.

 

Features and benefits

 

  • Pay a lower interest rate by using your car as security
  • Fixed interest rate for the life of the loan
  • Choose weekly, fortnightly or monthly repayments
  • No deposit required
  • Get a fast decision on your loan with instant approval
  • Loans over 2-7 years

Important Factors to Keep in Mind

If you plan on taking out a personal car loan, you will need to decide how much to borrow. If you know which car you want to buy, this part will be easy. If you don’t know which car you want to buy, use a car loan calculator to work out how much you can afford.

Using a car loan calculator can help you work out how much you can afford to repay each month, how much you can afford to borrow overall, and how long you want the loan to last. It can also help you to compare personal car loans from different lenders.

Choosing a personal car loan that you can afford is the key to a successful loan. Don’t borrow a loan you can’t afford, or you may find yourself overstretched financially. Try tochoose a loan over the shortest period of time with the lowest interest rate and affordable loan repayments.

Compare personal loan options, and take into account how much you will pay in interest and fees, as well as what features the loan offers. Always read the terms and conditions infull, and make sure the loan is right for you before you apply.

About Commercial Car Loans

Commercial car loans – also known as commercial hire purchase – work in much the same way as standard car loans, except they are designed for businesses. If you take out a commercial car loan, you can choose which car you want to buy, and how long you want the loan to last (usually between 12 and 60 months).

Once you have chosen the car you want, the lender will then buy it on your behalf. You will pay the lender back in regular installments over a certain period of time, usually with a certain amount of interest. When the loan has been paid off, you can take ownership of the car.

Commercial car loans are ideal for business owners who may not have the money to pay for the car – or cars – they want upfront. With a commercial car loan in Australia, the repayments are spread over a period of time, making the process of buying a car much more affordable.

The interest rate on commercial car loans is fixed, which makes repayments easy to budget for. Repayments can be arranged so that the car is completely paid off at the end of the loan, or you could choose to add a balloon payment to make repayments more affordable.

Features and benefits

  • Pay a lower interest rate by using your car as security
  • Fixed interest rate for the life of the loan
  • Choose weekly, fortnightly or monthly repayments
  • Pay a lower interest rate by using your car as security
  • Fixed interest rate for the life of the loan
  • Choose weekly, fortnightly or monthly repayments

Important Factors to Keep in Mind

Just as you would with a standard car loan, it’s important to work out how much you can afford to borrow on your commercial car loan. Work out how much you need to borrow and create a budget to work out how much you can afford to pay back each month.

Use a car loan calculator to try out various repayment scenarios and find the one that works best for you. Then compare loan options to find a loan and a lender that suit your needs. If you apply at Car Loan World, we search for loans so you don’t have to – making the process much faster.

If you want smaller monthly repayments, consider adding a balloon payment to the end of the loan. This will make the loan cheaper month-to-month, but make sure you can cover the balloon payment at the end of the loan.

It’s also worth considering the tax benefits of commercial car loans. You may be able to claim tax back on the interest you pay on the loan, on the vehicle’s running costs, and on the depreciation of the vehicle. The GST component of the car loan may also be tax deductible.

 

Applying for personal car loan


      Can I get a car loan if I’m not an Australian resident? +

      t is usually harder for Non-residents of Australia to get approved for a car loan. However, it is not entirely impossible for some lenders to overlook your residency status providing you meet other criteria.Read more about car loans for non-Australian residents

      How do lenders determine your ability to repay a loan? +


      Lenders will usually look at your income and your credit file to assess your ability to repay a loan. Your credit file tells the lender how well you have dealt with credit in the past, helping them to determine how well you will deal with it in the future.

      If you have repaid loans and credit cards on time in the past, it will suggest to the lender that you would be capable of repaying the loan they give you. As for your income, the lender will look at your income to determine whether you can afford to repay the loan.

      How Much Can You Borrow? +


      You can borrow any amount between ___ and ___, dependent on your circumstances. The amount you are allowed to borrow will depend on the loan type and the lender, as well as your borrowing power.

      The lender may assess your credit history, your current income and various other factors to determine how much you are allowed to borrow. If the loan is secured against the car, you may be able to borrow more, as the car will be used as collateral.

      Personal loans vs. secured car loans +


      A personal loan can be used for any purpose, whereas a secured car loan can only be used to purchase a car. The amount that can be borrowed on a personal loan and a secured car loan is determined by the lender, the loan, the market, and the borrower’s income and credit history.

      Personal loans and secured car loans can be fixed rate or variable rate. Personal loans can be secured or unsecured, while a secured car loan is secured, usually against the car being purchased. Choosing a secured loan can make the loan cheaper and easier to get approved, as it is deemed lower risk by the lender.

      Can i have more than one car lease or loan at a time? +


      You can have as many car leases or loans as the lender – and your budget – allow. The lender will take into account how well you deal with your current and past loans, and whether you can afford to take out a new lease or loan. This will involve looking at your income and your credit file.