Car loan FAQs
See below for answers to the questions our brokers are often asked by customers who are considering a car loan.
Am I eligible for a car loan?
To apply for a car loan, you must:
– be 18 years or older
– be an Australian resident
– have a regular income
– be looking to borrow more than $5,000
What is a Car Loan, and how do they work?
A Car Loan is a personal finance product where the financier provides the borrower with the funds to purchase a vehicle for personal use. The loan is secured against the vehicle, and at the end of the contract the customer retains the full title of the vehicle.
A Car Loan can also be known as a Consumer Loan or a Secured Car Loan.
What are the features and benefits of a Car Loan (Consumer Loan)?
Benefits of a Car Loan can include:
- Flexible contract terms, or length are available (ranging from 2-10 years)
- A residual can be applied to the loan, reducing the monthly instalments
- Borrowers have a choice of fixed or variable interest rates
- A deposit can be used (either cash or trade in) which reduces the size of the loan needed
- A tax deduction may be applicable if the vehicle is to be used for business purposes
- Lower interest rates are available as the loan is secured against the car
Online quotes and online approvals available for car loans.
What are the tax & GST implications of a Car Loan?
A Car Loan is a personal finance product, however a tax deduction can be claimed depending upon the percentage of business use. For more information about claiming vehicle-related tax deductions please visit the ATO website.
Can I choose between a fixed or variable rate loan?
All car loans are fixed rate loans.
Can I include insurance and warranty in the loan amount?
Some lenders will allow you to include these in the loan amount.
How does pre-approval work?
Pre-approval means having your loan approved before you find the car you’d like to buy. This means you can shop around for your new car with peace of mind knowing what you can afford.
Once you find the car you’d like to purchase, your broker will arrange for the funds to be drawn and payment to be made.
What are the benefits of going through a broker for my car?
Your broker has access to a number of different lenders, therefore not only being able to service your needs at the cheapest rates but also having the flexibility to a range of different products. This varies from no monthly administration fees to no early payment penalties and also the flexibility of low fixed interest rates and options to make payments weekly/fortnightly/monthly.
What types of vehicles can my broker finance for me?
We can source loans for the following:
• Cars
• Motor bikes
• Caravans
• Boats
How long will my car loan take to be approved?
Your finance can be processed as quickly as 2 days (this may vary depending on circumstances, such as the dealership not co-operating). E.g. Dealerships can try and delay the process by not providing a Tax Invoice, giving them the opportunity to quote the finance themselves.
We can organise pre-approval of your loan to ensure there is no disappointment and delays regarding sourcing finance for your vehicle. In order to proceed with a pre-approval, we require an indication of the vehicle you are looking to purchase (the vehicle description may change) along with an application. It is best to provide supporting documents (i.e. Privacy Consent, Pay slips and Drivers Licence) upfront to ensure all income calculations are correct.