A world of Car finance options
In today's competitive car finance market, there are a number of car loan options available to fund a vehicle purchase. With so many options, car finance can be confusing. This short summary will help you understand the various car loan options at a glance and help you find the perfect car finance for you whether you want, new or used a Ford or a Ferrari, for work or for personal use.
Car loan – a traditional form of car finance whereby you repay the principal amount with interest over time. A car loan is generally a secured loan, so because the lender has the car as security, the interest rate can be lower than some other loans such as a personal loan.
Personal loan – can be used as car finance, but it is an unsecured loan so the interest rate can be higher than a secured car loan. The car remains unencumbered.
Lease – often associated with business vehicles, leasing is a form of car finance that offers benefits to both individuals and businesses. A car finance lease enables you to finance a car without taking the risks associated with owning the car or having to outlay any capital to purchase the asset. Operating lease – a car finance lease where you fixed monthly rental payment is matched to a term and distance that suits your driving needs. At the end of the operating lease term, the vehicle is simply returned in a good condition and the car finance obligation ends. Novated lease – the perfect form of car finance for employees looking for car finance as the repayments are made from pre-tax salary. Also an option for employees looking to add low-cost benefits to their staff remuneration packages.
Chattel mortgage – A Chattel Mortgage is a business car loan product available if the vehicle is to be used predominately for business purposes.
Commercial hire purchase – Commercial Hire Purchase, is a type of car loan lease where the customer uses the vehicle by hiring it for a set period of time and a fixed repayment. Vehicle Ownership is transferred to the customer once the final payment is made.
Whether you are looking for car loan for yourself, the family or for business use, our trained Finance Consultants can tailor a car finance solution to suit you. Contact 360 Financial Services for a confidential, obligation-free car finance discussion
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