What Loan Suits You Best?

Here is some information about the 3 basic car loans that you’ll see when you’re applying for car financing...

Personal Loan? - With no deposit required, the personal loan is the simplest loan of the lot - immediate ownership is granted to you once you’ve paid! Just remember that this type of loan can potentially be risky if you have no collateral to put up as security!  

Hire Purchase? - Hiring the car from your lender is a good option if you want to eventually own your car. With a deposit and with the car itself as a security, interest rates are much lower and monthly instalments possibly more manageable.

Dealer Finance? - Getting a quotation from your dealer has its pros and cons - rates may not be as competitive as the salespeople mark up interest rates to earn a commission for themselves!  The convenience is a plus though so if you don’t mind paying a little bit more for that...

Why not let The Smarter Finance Company help you compare the options? Call us today!

What Loan Suits You Best?

Car financing for Newbies - The Novated Loan

How can you use a novated loan to help finance your car? Find out more below...

How it works - Ever wish you could streamline your car payments? The Novated Loan helps you integrate your financing payments into your salary structure with the help of your employer! Choose a non-maintained novated loan to retain some control of how you pay for your car’s expenses and a maintained novated loan if you would prefer all the variables to be taken care of.

Pros - There is convenience in including your payments in your salary. Both parties are rewarded in this mutually beneficial relationship and more than in just good feelings! There are tax deductions also of course! And the lender is happy to lend you a larger amount at a smaller interest rate too.

Cons - The car remains under your name so if you are out of a job, the responsibility is on you to continue making payments.

The Novated Loan can make your life easier, but let The Smarter Finance Company help you work out the details. Call us today!

Car financing for Newbies - The Novated Lease

Car financing for Newbies - The Hire Purchase Agreement

Let’s find out more about the Hire Purchase Agreement for financing your new car.

How it works - The lender buys the car and lets you “hire” it from them. But with the added benefit of ownership once you have made sufficient payments to the lender. You can adjust the payment terms according to your preferred tenure and work with the lender to find a monthly instalment amount that meets your needs.

Pros - Since the lender owns the car until you’ve paid up, they are much more willing to give you better interest rates and accept the agreement at a lower deposit amount. Sales tax and VAT can be waived and can benefit businesses in terms of managing their cash flow. Ownership is also granted at the end of the term.

Cons - If you default on payments or break contract anywhere in between, you lose the right to own even a portion of the car despite how many payments you’ve made.

Car financing for Newbies - The Hire Purchase Agreement

Find out more about the Hire Purchase Agreement with The Smarter Finance Company!