A Secured Car Loan is a personal finance product where the financier lends the customer funds for the purchase of a vehicle, and secures the loan against that vehicle. It can also be known as a Consumer Loan or a Car Loan.
-Flexible contract terms ranging from 12 to 84 months (one to seven years)
-A balloon value can be applied to the contract enabling the monthly repayments to be tailored to a budget
-Choice of fixed or variable interest rates
-The loan is secured against the vehicle, allowing lower interest rates
-A tax deduction may be available when the vehicle is used for business purposes*
* Please refer to your accountant for eligibility.
What is a car loan and how does it work?
A car loan (also referred to as a secured car loan) involves a finance company lending you the money to purchase a vehicle for personal use. The loan is secured against the vehicle and, when the final repayment has been made, you will own the vehicle outright.
What tax and GST can I expect to pay on a car loan?
A car loan is classed as a personal finance product, however, it may still be possible to claim a tax deduction on your payments, depending on how frequently you use your vehicle for business purposes. For more information about claiming vehicle-related tax deductions, please visit the ATO website.
How does a secured car loan work?
Under a Car Loan the financier advances funds to the customer to purchase a car. The customer takes ownership of the vehicle at the time of purchase, and the financier takes an interest in the vehicle as security for the loan. Once the contract is completed, the financier lifts their interest in the vehicle, giving the customer clear title.