The motor vehicle market is one of the most competitive both for consumer cars and business vehicles. Dealers are keen to get your business and there are any number of great sounding deals on offer at any time. Add to that the lucrative used car market and the online sector and buyers are spoilt for choice in deciding which car and what price.
When it comes to securing a loan to purchase the car, the car loans market is equally competitive. Many dealers are aligned with a finance company so they can offer you a quick loan deal on the spot. They want you signed up and SOLD asap. When approached with such an option, perhaps you should question if any hidden commissions are being exchanged and exactly what is the interest rate you’re paying. Use a car finance broker, your consultant can source you a quick quote after canvassing offers from multiple lenders, not just one.
Personal Car Loans
If you’re purchasing a car for your private use, you basically have to choices: Secured Loan or Unsecured Personal Loan. With a secured loan, the lender uses the car as collateral security against the money they are loaning you. With an unsecured personal loan, no security is offered. You may have a range of reasons as to why you choose not to offer security against the loan. As there is no security, unsecured loans have a higher interest rate. If you ask us to arrange your personal car loan, it will include: low Interest Rates, fixed monthly repayments and fixed loan term and no deposit is requested by the lender.
Contact us now for a quote on a personal car loan.
Business Vehicle Finance
If you’re purchasing a vehicle which will be primarily used for business purposes, there are a number of commercial finance products available. It’s advised that you discuss which is best suited to your business structure, as they feature differing treatments of GST, tax deductibility, balance sheet entries and other accounting aspects.
Chattel Mortgage: By far the most popular business vehicle finance option as it suits most businesses that use the cash accounting system. This type of finance includes our cheap interest rate which are fixed for the term of the loan; fixed monthly repayments and fixed loan term. You can claim the full GST on the purchase price on your next BAS so there is no GST on the repayments or interest. The repayments are not tax deductible, but the interest is. Repayments are not tax deductible but the interest is.
Car Leasing: This is an off balance sheet option where the vehicle does not appear on the balance sheet as an asset/liability and the leasing payments are treated as a tax deductible operating expense. Our low interest rates are fixed, leasing payments fixed and GST is applicable to the monthly payments and residual, but not the interest.
Commercial Hire Purchase (CHP): Also a popular option for many businesses and we can arrange CHP on your vehicle at low, fixed interest rates, fixed repayments, fixed term and no deposit. You can claim the GST on the purchase price on your next BAS but not on repayments or interest. Repayments are not tax deductible but the interest is.
Contact us now for more details on business vehicle finance.