Consumer finance is a flexible finance format best suited to PAYG employees. Financing under this category is designed for personal use. This can be done in the form of Secured Loans and Unsecured Loans. Assets that would qualify for Secured loans are:
- Boats & Jet Skis
Car Loans includes new or used cars, utilities and vans that are mostly used for private purpose.
Boats & Jet Skis, Caravans & Motorcycles falls under Leisure loans. Today we will zone in on car loans.
A Car loan also known as a secured car loan involves a finance company lending you the money to purchase a vehicle for personal use. The loan is secured against the vehicle and once the final repayment is made, the car is yours.
Advantages of Secured Car Loan
- Lower Interest Rate - As the vehicle purchased is used as security by the lender for the loan, the lenders are able to offer lower rates compared to personal loan.
- Flexible loan repayment periods – Loan term varying between 1 to 5 years is usually offered, although this can go up to 7 years depending on the application.
- Option to set a balloon or residual –A balloon payment is a lump sum owed to the lender at the end of a loan term after all regular monthly repayment have been made. Setting up a Balloon can further reduce your monthly repayments. Depending on the lender and term of the loan, balloons can be set up to 60% of Retails value of the vehicle.
- Flexibility for Early repayment of loan – Most lenders offer flexibility with regards to the repaying back the loan. You have the option of making extra repayments or even closing the loan early. Although this can incur some charges, the benefits of saving on the interest is usually higher than exit fees.
Veracity Financial can assist in arranging finance for the cars purchased from the dealership or privately. In fact, we can assist you in finding the right car for you which will save you time and money making car purchasing so easy. Read our blog to see how we do it.
Enquire now if you are looking to apply for Finance, to get an obligation free credit assessment. Call us on 1300 721 258 or apply online https://www.veracityfinancial.com.au/get-approved/.
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