Personal Car Finance
Getting car purchase loans for personal vehicles is no longer a tough and tedious task since there are various establishments that offer both secured and unsecured loans to people who want to own their dream car but do not want to pay the entire amount from their pocket in one instalment. Australian car loans for personal use are given to interested people for a period of 7 years.
This means that the repayment period of these loans is 7 years and the repayments can be made once a week, once in 14 days, or once a month. The repayments can be made by a variety of payment methods such as direct debit, check, internet banking, cash and direct payroll. Buyers who are interested in opting for value added services while opting for car finance can opt for insurance, loan protection and warranty.
While a few lenders may require the debtor to pay a deposit, in most cases this is not required. A deposit can however; increase your chances of getting an approval. These loan purchases have a fixed interest rate which is calculated only on the daily unpaid balance amount. Making extra or additional payment to the regular repayments can reduce the total outstanding amount which can in turn help reduce the interest rate payable to the lender. If in case the vehicle is used partially for business or work related purposes then interest charges and depreciation can be used as tax effective claims.
Setting a larger balloon payment for the end of the term can also ensure lower monthly repayments. This being said, setting a larger balloon payment will mean that you will either have to pay the full balloon amount at the end of the term; or you will have to refinance the balloon amount while continue paying off the vehicle over a new loan purchase period.