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      Car Loan FAQ

Car Loan Facts

Below we present some of the key facts that people need to know when they are considering applying for car loan. Regardless of whether you are looking for a secured loan or unsecured loan, or whether you have a good credit rating, these facts should be useful to you.

What is a secured car loan?

A secured car loan is the most common type of auto finance. When you borrow money to purchase a car in this way, you use a personal asset (usually the car that you are purchasing) as collateral for the loan. If you fail to make your repayments, the finance company can seize the asset used to guarantee the loan. If you have a healthy credit rating, this is the easiest type of vehicle finance to secure.

What is an unsecured car loan?

With an unsecured car loan, the lender does not require anything to be provided as collateral. This means they are taking a much greater risk as if you do not make repayments they have nothing to claim against. For this reason, interest rates will almost always be higher for an unsecured auto loan. They are also not usually available for people with a low credit score. Either due to having a bad credit rating, or for not having a credit rating at all.

Why is having no credit rating bad?

Unless you have had some form of finance in the past, such as a loan, a phone contract or a credit card, then you will not have a credit rating. For lenders, this means you are unproven. So quite unfairly, you are seen as a credit risk. This means you are less likely to be offered vehicle finance than people with a credit rating.

I have a bad credit rating can I still get a car loan?

The simple answer here is yes. There are many lenders who specialize in providing people with a low credit score with the auto finance they need. These lenders develop special loan packages that are designed for people with a bad credit rating. They factor in the risks and set interest payments at a level to cover those risks. In other words, expect to pay a higher interest rate if you have a bad credit rating.

Can I get car finance without a credit check?

Lenders that specialize in car finance for people with a bad credit will still require a credit check, however a more lenient with bad credit history as there will be a higher rate for the higher risk. Eveytime you apply for credit a credit check will be performed.

Can I get finance for any car?

Within reason yes, you can get finance for any car. Lenders have varied policies that relate to the age of the car, amount of kilometres on the odometer, the make and model (i.e. prestige cars and/or imported cars), etc. Our standard loan for people with bad or no credit offers a maximum vehicle value of $4,000. If you need more than this, please contact us and we will try to help, also we can talk through the lending policy for your type of loan.

What are the tax implications of a car loan?

If you are purchasing a vehicle as a private individual, then the car loan you use to buy it has no tax implication at all. However, if the vehicle you are buying is used for business purpose, you could be able to claim a tax deduction (please ask your accountant for further advice on this).

Can I get a car loan if I am self-employed?

Yes, you can, we have several products aimed at self-employed people and small business owners to help them receive car finance. This includes chattel mortgage and leasing style finance. For more information, please contact us and we will help with the best fit for your situation.

My employer wants me to buy a car, is there a better option than buying one outright?

Yes, you can speak to your employer about novated leasing. With a novated lease, you can claim back part of the costs against your pre-tax income. You are also free to upgrade your vehicle when you want to, and you don’t have to pay a large down payment. The downside of course, is that you don’t actually own the vehicle. Instead, you get a new car at a low fixed cost. There could also be fringe benefits tax implications, therefore it is best to speak with your accountant about this option

Can I apply for a car loan if I am on Centerlink?

Yes, you can. We understand that people who are on Centerlink often need access to a vehicle to start making positive changes in their life. Therefore, we have a number of finance products available that could fit the bill. The best thing to do is contact us and talk about your situation, and we will attempt to match you to the right car finance product.

I Want to Apply for Car Finance but I am not good at filling in forms.

Don’t worry. We have made our online application process as simple as it can possibly be. Just complete our short questionnaire, which should take less than two minutes, and we can begin processing your application for car finance.

What are my responsibilities if I am offered a loan?

Obviously, you will need to make the regular repayments against your car loan. Additionally, you are obligated to keep the vehicle insured at all times whilst it is still being paid for.

What happens after I apply?

We will take all of the details you have provided and compare your situation against a wide range of car finance products from a number of lenders. If we can help we will select the best auto finance products for you. We will then provide you with the solution so that you can go shopping for your car.

How are you different from other car loan companies?

We are entirely independent; we do not represent any single finance company. Instead, we aggregate car finance products from multiple sources, to find you the right deal. We are on your side, not the side of the lenders. We help people who have a bad credit or credit history problem gain access to a vehicle. No headache, no fuss.

I have more questions, can you help?

Of course we can. Our team consist of highly trained and skilled car loan expert that will tailor your finance applications specifically to suit your current situation and needs. You can contact us directly by telephone or email, or you may use the contact form on this website. We will do our best to come back to you with answers to your questions as soon as possible.

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