The economy has been hard on all of us. For this reason, getting finance from alternative sources is no longer an option. When deciding on what finance companies to go with, especially when looking for car finance companies, it is well advised to carry out some due diligence, in order to ensure that we are getting the best bargain. When looking for a car finance company in Australia, there are certain things that you need to determine, that will go a long way in ensuring that you don’t get the blunt end of the deal.
The first thing that you need to determine is how many car financing options does the financing company offer. Different Australian car financing companies, with the increasing demand for car loans, have decided to diversify on the type of loans that they offer to their clients. There are two types of loans that are popular with borrowers, that is, the business car finance and personal car finance options. Both these options, should be tailor made to suit your needs and at the same time reducing the cost of acquiring a vehicle. However, the options offered by the Australian company, should not stop there, instead they should also have car leasing options. These are very popular with business persons who are trying to cut down on operation costs while they simultaneously try to increase the revenues. Car leasing is also viable to tourists (local and international).
In addition to the above the car finance company, should offer a variety of loans in order to effectively reduce the cost of acquiring a vehicle. There are a variety of loans offered by car finance companies in Australia. First, let’s look at Chattel Mortgages.
A Chattel mortgage is a car loan that permits different types of businesses to secure car financing. In order for the vehicle to qualify for this loan, the car has to be used for business tasks for at least 50% of the time. The repayment is on a monthly basis. There are numerous advantages that come with this kind of mortgage. One, you get to possess the vehicle right from the beginning of the agreement. Also it is possible to have any kind of vehicle (despite their age) get financed. These are just some of the few benefits you stand to gain from by securing financing, using this option.
Another mortgage option that most Australian companies offer, is the consumer car loan. Quite simply put, it is a loan between the purchaser and the lender characterized by regular payments. There are many benefits that you stand to gain from by securing a car loan using this option; financing could be beyond 100% of the price of purchase, you are guaranteed of possession of the vehicle from the beginning of the agreement, regular payments are made on a date that is pre-determined and it is possible to tweak the length of the agreement in order to suit your needs.
A Novated lease is still another option offered by car finance companies in Australia. It involves an agreement between three parties, that is, the employer, employee and the lease company. This kind of mortgage has got both its benefits and demerits, and you should weigh your options carefully before you choose on it. Basically, the employer gets to pay the lease company a certain amount from the employees’ pre-tax salary.
Be sure to read the fine print of any agreement before putting your John Hancock on it.
