Susan Mitchell
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Car Finance
Often, people lack enough money to pay upfront with cash for land, houses, furniture, cars, etc. Loans fill this niche of people who need funds now and can pay later.
A loan is a portion of money borrowed from lenders and a tiny sliver of future revenue or profits. In return for this, you, a firm, or any other borrower pays the banks and lenders the amount with an extra charge or rent, called interest.
After ironing out and agreeing on the terms and conditions in a lease contract, you start renting the car. When the agreement is complete, the dealer or the up-till-that-point owner offers you to either return it or purchase at a pre-fixed rate.
Although there are numerous variations on leases to fit many niches, a lease is similar to a loan. The critical difference, however, is that you would be renting the car directly. In contrast, you would be renting the money used to pay for the car in a loan. Thus, you would be the owner from day one, hour zero.
These systems of financial aid are helpful for the automobile market and industry. Cars are marvellous machines and are expensive to buy, and a tad more to make.
Even a relatively economical and unluxurious car can cost quite a dollar for a good bit of us. So, for most of us, a cheap low interest car loan or lease is the only way we can get behind a non-bumper car wheel.
The lending and borrowing world is – like most finance – a somewhat complex and jargon-riddled mess, with perhaps some intentional obfuscation to boot.
However, it pays dividends doing your due diligent research over here, with all the different payment plans, exact fees, instalments and terms, and everything. It honestly does not take that much to have a firm grasp on the subject.
We recommend you do some further reading and ask trusted sources for information and guidance – a friend, family, a co-worker, or perhaps our trusted partners.
We also recommend pre-approving your loans before you buy. Doing so will smooth out the process, making sure you do not spend more than what you want and make sure you do not pay a lot more for the same or similar payment plan.
Some Options
As stated above, Australia’s financial ecosystem has developed many varieties of a lease/loan. And it would be a good thing to do a tad more than skimming or listening to work out the right type for your niche.
And remember, you can always contact us, our third-party partners, for any comments, questions, or concerns you may have. And if you are ready, fill in the form, and our trusted partners will handle the rest.
Consumer Secured
These are the run of the mill car loan arrangements. The potential borrower wants to own the asset, like a car, entirely and then use it in whichever they want to, so they borrow money from a bank or another licensed lender.
The borrower claims complete ownership when they buy their car, during, and after the full repayment of the loan. Any aspect of the arrangement is up for grabs during its drafting. The length of each instalment and term, the amount paid upfront, and even allowing or expecting balloon payments.
Chattel Mortgage
Chattel mortgage car finance may be somewhat self-explanatory if you slightly twist some meanings here and there. Businesses, companies, and firms require assets, like vehicles, to maintain the functioning of their business. These assets are diverse and include but are not limited to SUVs, Utes, and more.
The borrower claims complete ownership while the lender obtains a loan by mortgaging the vehicle or equivalent. An additional caveat is that the scheme mandates that at least 50% of the usage by the user(s) must be for business.
Financial Lease
Businesses, companies, and firms can also use financial leases to acquire assets necessary or beneficial for their business. However, this contract varies from the chattel mortgage in many ways, one being that the auto’s condition matters. This mattering is because the vehicles depreciation instructs the payment plan, which is customarily systematic like its treatment in tax.
The borrower does not claim complete ownership; instead, they rent it until the end of the lease. At that point, they may return it or buy it. And suppose the owner wants to sell it on the market. In that case, the borrower/renter has to pay the difference in the estimated v actual return.
Operating Lease
This type of contract is essentially renting assets for use. The payments are generally fixed, and if all the firm meets the return requirements, they can hand back the vehicle once the contract is complete
Novated Lease
This contract is a tad special and distinct from the rest because this falls under salary packaging schemes.
In it, your employer pays for the lease, loan or other for your car in exchange for your salary. You claim complete ownership and retain it even after you have a change of bosses or stop employment – as long as you can pay. This system works and is effective because of income tax.
We are a car brokering agency. This fact means, while we are unable to provide you with insurance, finance, our team is able, skilled, and willing to get you the right car in the first place.
There have been many times that our simple assessment of the values of cars saved individuals and companies insane amounts of money. And we did so by matching them with an automobile of the lowest rate for the highest quality. There are not a lot of remarkable similarities that cars and leases have. Hence, you need the knowledge and experience of a good car broker even if you do not go for any leases, loans, or mortgages.
So please do contact us, fill in the form, and help us match you with the right car for your company, family, or leisure. We will then forward the information you gave us to our trusted third-party partners whom we recommend. So they can handle your car finance directly.
Note: we do not provide you with any car financing options directly. Under Australian regulation, only the licensed lenders may be legally able to do so. Abiding by that, we offer the services of our licensed third-party partners. We will only forward them the required details that you entrust to us when you contact us or fill in the form for car finance.