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.

• 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

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.

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.

• 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

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.