Types of Car Loans
There are different car loan options available today depending on the features and the payment terms of the vehicle finance.
The process of getting a car loan usually vary depending on the type of loan you are getting and the type of vehicle you want to buy. But in general, you may need to follow these steps:
After shopping around for the car you want to drive next, we’ll find the right car loan lender for you and will submit your vehicle finance application with requirements.
Getting approval for a car loan may now even take days as long as you have submitted all your requirements. Some lenders may also provide you with pre-approval so you can shop around for cars with an estimate on how much you can spend.
The process of payment may vary. If you are purchasing a car as a private purchase, your vehicle finance company may directly pay the seller or write you a cheque so you can pay it yourself. If you are buying a car from a dealership, the car loan lender may pay them directly.
There are different car loan options available today depending on the features and the payment terms of the vehicle finance.
The vehicle you purchase will be used as collateral of the loan. Hence, the lender will repossess your vehicle if you default on the loan.
The lender cannot repossess your vehicle or any of your assets if you default on the loan. However, this type of car loan usually comes with higher interest rates and additional fees.
This type of car loan is popular among self-employed Australians who are buying a car for business use. You can only own the car if you pay the loan in full.
This is a popular option for employees who are able to arrange salary deduction with their employers. The lender will buy the car and your employer will pay the lease. This option will help you minimise your taxable income.