Generally the contract is for a term of 12 months to 5 year and it can have a residual payment at the end which can be refinanced at the end of the initially contact. The customer takes ownership of the vehicle at the time of purchase and the financier takes a charge over the vehicle to secure the loan.
Once the loan is paid out the customer has clear title of the vehicle.
Benefits of a car loan
- Flexible contract terms ranging from 12 to 60 months (one to five years).
A balloon value can be applied to the contract enabling the monthly or fortnightly repayments to be tailored to a budget.
Deposit (either cash or trade-in) may be used.
A tax deduction is available when the vehicle is used for business purposes.
The loan is secured against the vehicle, allowing lower interest rates.
Who does a Car Loan suit?
A Car Loan is suitable for individuals or businesses who wish to purchase a late model car either privately or from a licensed dealer.