Finance for Personal Use
We're here to help find you the right financing solution meaning you can negotiate in eth comfort that you have funding lined up and you are ready to get motoring. There are 3 main ways to finance a car which you are using privately. These are:
- Consumer Loan
- Personal Lease
- Novated Lease
Consumer Loan
This can be for new or used vehicles. It is similar to a personal loan. but generally cheaper as the car is used as security for the loan. The loan can be structured with no or a minimal deposit, with repayments structured around what you can afford, with up to 7 years to repay the facility. Repayments can be fortnightly or monthly and either in advance or in arrears. Finance is normally agreed within 24 hours. 100% finance is available for approved clients. It's a great facility with interest normally at a fixed rate and calculated on a daily balance which means that you can make extra repayments when you want.
Personal Lease
This gives you the flexibility of leasing whereby you can choose any new or used vehicle and the most suitable period to repay your loan being between 12 and 60 months. You can have fixed or variable interest rates and may not have to put down a deposit. There is an agreed residual value at the end of the contract payable which helps to reduce the level of the repayments. The fixed repayments are tailored to ensure they meet your budget. At the end of the contract you may be given the opportunity to re-finance your final lump sum payment. The vehicle is used as security for the facility.
Novated Lease
Available for new vehicles and certain demonstrators and through employers willing to support this. The employee chooses the vehicle and leases it from the finance company. It in turn, "novates" the lease to your employer who assumes responsibility for making repayments so long as you remain an employee. If you leave the company then normally the car remains with you and either you or your new employer takes over the repayments.
This may be suitable to employees who wish to salary package their vehicle. It's only available for vehicles that have a carrying capacity of less than 1 tonne and seat less than nine people. A three way agreement between you, your employer and the finance company is entered into which allows for your car to be treated as a company car for tax purposes, which can provide you with significant income tax and GST savings. You pay one amount each month which is calculated to include your fuel, insurance, all running costs and the finance for the car. This comes out of both your pre-tax salary and post-tax salary (to cover FBT). Because the finance company claims the GST on the vehicle and running costs, they pass this on to you by way of a reduced monthly repayment, saving potentially thousands over the period of the agreement.
The vehicle is registered in your name so there is no stamp duty if the vehicle is purchased at the end of the lease and you only pay GST on the residual value at the end of the lease. You can choose to pay out any residual finance or hand the vehicle back (which needs to be within the mileage and in the condition agreed) and take out another agreement.
If you earn more than $25,000 per annum, and mostly use your car for personal use, then if your employer offers this, then this may be suitable for you.
This may be suitable to employees who wish to salary package their vehicle. It's only available for vehicles that have a carrying capacity of less than 1 tonne and seat less than nine people. A three way agreement between you, your employer and the finance company is entered into which allows for your car to be treated as a company car for tax purposes, which can provide you with significant income tax and GST savings. You pay one amount each month which is calculated to include your fuel, insurance, all running costs and the finance for the car. This comes out of both your pre-tax salary and post-tax salary (to cover FBT). Because the finance company claims the GST on the vehicle and running costs, they pass this on to you by way of a reduced monthly repayment, saving potentially thousands over the period of the agreement.
The vehicle is registered in your name so there is no stamp duty if the vehicle is purchased at the end of the lease and you only pay GST on the residual value at the end of the lease. You can choose to pay out any residual finance or hand the vehicle back (which needs to be within the mileage and in the condition agreed) and take out another agreement.
If you earn more than $25,000 per annum, and mostly use your car for personal use, then if your employer offers this, then this may be suitable for you.
