Finance Lease Finance Lease is a form of rental agreement under which you lease your nominated asset for an agreed term and rental amount. A residual value is set to reflect the equipment's value at the end of the term.
Car Loans for personal useFor either car loan we will organise the amount you require which is repaid over a period of up to 5 years.
Scheduled fortnightly or monthly payments can be made by direct debit, cheque, BPAY, internet banking, direct payroll, and cash where applicable.
Insurance, warranty and loan protection can be added to the loan.
A deposit is not required on most cases, but that will assist in your approval chances should you have a borderline application.
The car loan is daily reducible, ie the interest is calculated on the unpaid balance daily, just like a home loan. Extra or additional payments will shorten the term and reduce interest charges (fees & charges may apply). And there may be an option to have the low interest rate fixed for the term of your loan, so it won't go up in a rising market.
Although it is a personal use loan, depreciation and interest charges could be tax effective claims if the car is for business or work related usage.
A variation known as the balloon payment or residual option is also slowly growing in popularity. By setting a larger balloon payment for the end of the term, which can vary according to circumstances, you can reduce your monthly payments to better balance your budget. At the end of the term, you can either pay out the full amount in one hit or re-finance the balloon amount and continue paying off the car over a new loan period.
Secured
Most car loans in Australia for personal use are secured.
As an individual you are borrowing money to purchase a tangible item like a new or used car, which will be used as security for the loan. When you trade-in or sell you must then payout your loan, and get a new loan if you require money to buy something else.
Secured loans generally have a lower interest rate than unsecured loans.
Unsecured
This is a very versatile personal loan, as it can be used for nearly any purpose including debt consolidation, for a holiday, weddings, and items that do not qualify for the secured loans above. There is no security required for this type of personal loan, thus interest rates are slightly higher than secured loans.
Hire Purchase
Hire Purchase is a rental agreement, but differs from Finance Lease in that the goods automatically become yours once all terms of the agreement have been completed. Ownership of equipment rests with the financier until the final payment is made, however for tax purposes you can claim equipment depreciation and interest paid, against your business income.
You also have the option of including an upfront deposit or trade-in to reduce your rental commitment, while a balloon payment may also be set at the end of the term (much like a lease residual) to acknowledge the equipment's end value. Alternatively, you may choose to structure your rentals to clear the debt in full over the term of your agreement.
Whatever the requirement, can set a repayment schedule to suit your needs.
Chattel Mortgage
Is essentially a charge over goods to be financed. The Chattel Mortgage allows businesses who operate under a `cash accounting' basis to claim the full input tax credit from GST incurred expenses immediately.
Loan structures can be tailor made on a similar basis to Finance Lease & Asset Purchase facilities.
Finance Lease
Finance Lease is a form of rental agreement under which you lease your nominated asset for an agreed term and rental amount. A residual value is set to reflect the equipment's value at the end of the term.
The goods are owned by the finance company, but the lease rentals are tax deductible to you, as long as the goods are used in connection with producing assessable income.
At the end of the Lease you can make an offer to purchase the equipment from the finance company, trade it in on a replacement, return it, or extend the lease for a further term.
Company Cars and Novated Lease
In recent years, Novated Leases have become a popular alternative for businesses wishing to provide their employees with motor vehicles.
A Novated Lease is effectively an agreement between the employee (a lessee), their employer and the finance company (the lessor).
It operates by creating a Finance Lease Agreement (refer to the Lease Agreement Section on this page) between the employee and the Bank. A Novation Agreement is then entered between all parties, which transfers responsibility for the lease rental commitment to the employer during the lessee's period of employment. On the employee leaving employment, the novation ends, with ongoing responsibility for the lease returning to the employee.
As motor vehicles acquired this way are leased by the employee, there are benefits for your business and your employee. These could include:
Bad Credit
Perhaps you're new to Australia, or forgot to pay off your credit card, maybe missed some repayments, you've been bankrupt, or just unlucky.
Sure, some people deserve another chance but a careful assessment is done before the finance company will take that risk.
Many applicants reading this may already have been declined or knocked back elsewhere. If this is the case don't despair. We have unbiased and experienced staff with specialist training for these 2nd chance scenarios.
Although being secured on your purchase, interest rates for this 2nd chance product are generally higher than all other types of finance, which relates to the level of risk.
If you require expert advice on your particular situation you can call contact our finance experts who will be able to listen to your situation and work out a solution and package to obtain a suitable finance arrangement for your needs.
Call 19 0222 0727 (calls to this number will be charged at $30 - Telads)