Car Loan

Consumer Loan

A competitive finance product for clients purchasing a car for private (non- business use). The title is held in your name from day one. Interest rates are fixed for the term of the loan. Additional repayments can be made during the loan.

For some consumer products, asset backed clients might be able to have a balloon payment at the end of the contract which is higher than the usual repayments. In this case repayments could be lowered to suit your budget. Consumer loans are a NCCP regulated product, which provides more protection and rights for consumers.

Chattel Mortgage

A commercial product where the financier advances funds to the customer to purchase a vehicle, and the customer takes ownership of the vehicle (chattel) at that time. The financier then takes a “mortgage” over the vehicle as security for the loan, by registering a Fixed and Floating Charge with the Australian Securities and Investment Commission (ASIC). Once the contract is completed, the charge is removed giving the customer clear title to the vehicle.

A Chattel Mortgage could be suitable for companies, partnerships and sole traders who are eligible to claim part or all of the GST in the vehicle’s price up-front. Eligible customers could claim interest charges on the contract and some depreciation as a tax deduction. A residual value (balloon) can be applied to the contract enabling the monthly repayments to be tailored to a budget. No GST is charged on the monthly repayment or the contract balloon amount. Please confirm with your accountant to confirm the suitability of this product.

Finance Lease

A commercial finance product where the financier purchases the vehicle on behalf of the customer, who then leases the vehicle from the financier and pays a fixed monthly lease rental for a specified term of several years. At the end of the lease the customer can either pay out the residual value (final instalment) on the lease and take ownership of the car, trade it in or re-finance the residual and continue the lease.

A nominated residual figure can help lower monthly repayments and tax deductions are available when the vehicle is used predominantly for business purposes. There is also the ability to make advance lease payments for cash-flow purposes. GST is charged on the monthly lease rental and on the residual value. Please consult with your accountant regarding this product’s suitability.

Car Loan Pre-Approval FAQ

If you are searching for a new car, having pre-approval for a loan could put you in the fast lane and save you a lot of money. Car loan pre-approval is when your lender agrees in principle to lend you a certain amount of money to buy a car, subject to credit approval and an invoice from the dealership.

What are the next steps after getting pre-approval?

Getting your application sorted Once you have been pre-approved the next step is to provide your supporting documentation for the final car loan approval process. This will include:
  • A copy of your driver’s license
  • Payslips
  • Bank statements
  • Other information the lender may have requested when loan was conditionally approved
Once the vehicle has been secured, we will contact the dealership and obtain an invoice for the vehicle. At that time, a final assessment will be conducted and a final approval granted. You will then receive an electronic copy of your loan contracts to be signed and returned. We will then pay the loan funds to the car dealership directly. You are then free to drive away!

What are the benefits of having pre-approval?

  • Helps you set a realistic budget – when you go car shopping, you already know how much you can borrow and what the regular repayment will be.
  • Get a cheaper interest rate – if you shop around and get pre-approved in advance, you will be able to compare and get the best value finance.
  • Strengthen your negotiating position – with your pre-approval in hand, you’re in a stronger position to haggle.
  • No obligation – there is no obligation to proceed should your circumstances change and there is no out of pocket cost incurred.  Only if you proceed to get a loan will you be charged a car loan application fee.

Some things to consider:

  • Each time you apply for pre-approval a credit check is conducted, so if you get pre-approvals from multiple lenders it can affect your credit score. To avoid this, shop around first and only get pre-approval from your preferred lender.
  • It is only valid for a limited time.

Does pre-approval guarantee a car loan?

Pre-approval is a conditional approval based upon the information received at the time of issuance. It is not a guarantee but is an important part in the car loan process. Unconditional approval will be provided once all documentation has been received and a final credit assessment has been conducted.

How much can I be pre-approved for a car loan?

Our minimum loan amount for a private vehicle is $5,000 and our maximum loan is $100,000. For a business vehicle, the minimum is $5,000 and the maximum is $150,000. The amount you can be pre-approved for will depend upon the vehicle purchase price and your financial circumstances.

How long does it take to get approved for a car loan?

You can find out if you qualify to apply for a pre-approved car loan within 24 hours, and get final official conditional approval within two work days. The overall car loan processing time, from application to settlement, takes 3-4 days.

What are the steps to get pre-approved?

Depending on where you are in your car buying journey, you can do any or all of the following:

  • Calculate your repayments – Find out how much you can afford to pay for a car using our car loan calculator. It only takes a minute to get an estimate.
  • Get car loan pre-approval – complete an online car loan application and then arrange a call with one of our experienced lending managers. They will quickly run through some extra questions and do a credit check. Once an assessment has been made, we will provide a pre-approval. Later, this makes it easier to get approved for a car loan online.

Why get pre-approved before going to a dealership?

The main reason to get pre-approved before going to a car dealership is to strengthen your position when negotiating with the dealer. It is difficult to play hardball when you are depending on the dealer for finance! If you know your budget and are buying a car with a pre-approved loan, you can bargain with more confidence.