Vehicle Finance
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Vehicle Finance
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- Vehicle Finance
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Talk to Insurance Time experts and ask questions before you finalize your plans or if you need help with our services.
Contact Info
0431 170 021
info@fgsfinance.com.au
15 Abbeywood Street Taigum QLD 4018
Vehicle finance in Australia allows people and businesses to get vehicles using different financing options that fit their needs. Whether buying a new car for personal use or adding vehicles to a business, there are several financing choices available to match various requirements and budgets.
Vehicle Finance Choices:
- Car Loans: Car loans are a popular way to finance a vehicle. You borrow money from a lender to buy a car and pay it back over time with interest. Car loans can be secured (with the car as collateral) or unsecured.
- Chattel Mortgage: A chattel mortgage is a way for businesses to finance vehicles. The lender gives money to buy the vehicle, while the business owns it and the lender keeps a mortgage on it. Once the loan is paid off, the mortgage is cleared, and the business fully owns the vehicle.
- Novated Lease: A novated lease is a financing option often used for company cars. It involves an agreement between the employer, employee, and finance company. The employee leases the vehicle using salary sacrificing, with the employer taking lease payments from the employee’s pre-tax salary.
- Commercial Hire Purchase (CHP): CHP is a type of vehicle financing often used by businesses. It works by the lender buying the vehicle for the borrower and then renting it back to them over a set period. After all payments, including the last balloon payment (if needed), are made, the vehicle ownership goes to the borrower.
- Finance Lease: A finance lease is like a novated lease, but it doesn’t involve salary sacrificing. In a finance lease, a finance company buys the vehicle and rents it to the borrower for a set period, with the option to buy the vehicle at the end of the lease.
Important Points:
- Interest Rates: Interest rates depend on the type of loan, the lender, and the borrower’s credit score. It's important to compare rates from various lenders to find the best deal.
- Loan Terms: Loan terms can last from a few months to several years, based on the financing option you choose. Longer terms usually mean lower monthly payments, but they might lead to higher interest costs over the life of the loan.
- Deposit Requirements: Some financing options may need a deposit, while others provide full financing. A bigger deposit can often lead to better loan terms.
- Repayment Flexibility: It's crucial to know the payment plan and options, like making extra payments or paying off the loan early without fees.
- Insurance Requirements: Lenders often need full insurance on the financed vehicle to safeguard their investment.
Summary:
Vehicle finance options in Australia give people and businesses flexibility and ease when getting vehicles. By knowing the different financing choices available and comparing terms from various lenders, borrowers can pick the option that fits their needs and budget. Whether buying a personal car or growing a business fleet, vehicle finance helps achieve ownership while keeping cash flow in check.
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