Pre-delivery finance is a loan that is sourced with pricing and conditional approval in advance of the buyer taking delivery or the availability of the goods. The same as pre-approved loans but typically obtained further ahead of purchase, a pre-delivery loan may provide many benefits in several scenarios. These can include where buyers need to pre-order vehicles which are in high demand or arriving in the market with limited availability. This may also apply to boats, limited edition motorcycle models, heavy vehicles, and a wide range of machinery and equipment.
Buyers that need to pre-order to secure their goods when the shipment arrives or the goods are launched, often want to have an indication of their loan commitment first. They may also want the assurance that they will be approved for the loan required before placing their order and paying any deposit or holding payment.
How is pre-delivery finance priced?
Loans sourced well in advance of taking delivery of the goods should be taken as an estimate and used as a guide to the final outcome. Depending on the timeframe between being quoted and taking delivery, final settlement, interest rates and the loan amount required may change. Rates may change with RBA decisions.
To establish how much is required for the loan, buyers will need to obtain pricing from the dealer or manufacturer. If the goods are being imported, often the exact selling price will not be known until the goods land in the dealerships. Buyers need to request a price guide from the manufacturer to use as their loan estimate.
The loan application is then completed, and a quote and approval sought, based on the buyer’s current credit score and financial documentations. The interest rate quoted will be at the current rates offered by the chosen lender. Offers are valid for a set time period.
Lenders provide conditional approval with a quote for rates and repayments. The quote is conditional on the interest rate market and the buyer’s credit profile at the time that the loan is required. It will also be conditional on the buyer confirming the exact amount required for the loan.
Depending on the timeframe between application and delivery, interest rates may vary. The rate at the time the loan is required may be lower or higher than quoted at the pre-delivery stage. When the date for taking delivery approaches and the buyer does have an exact loan amount, the loan offer may be reviewed and finalised.
When finalising pre-delivery finance, lenders will apply current rates and assess the current credit position. Any variations required will be made in any final loan offer. Offers do not carry an obligation to proceed. If the final price of the goods or the goods themselves are not acceptable to the buyer when available for sale, any loan offer would simply expire.
What loans are available for pre-delivery finance?
Loans can be arranged prior to delivery with many credit products. While pre-delivery loans are widely used for low stock motor vehicles and limited-edition motorbikes, they can be used for caravans, boats, trucks and equipment. The relevant credit product would apply.
For private buyers the appropriate category of secured loan would apply - Secured Car Loan, Secured Boat Loan, Secured Caravan Finance, or Secured Motorcycle Finance. Business buyers select the credit facilities that best suits their structure and objectives from Chattel Mortgage, Lease, Rent-to-Own and Commercial Hire Purchase.
All the features and benefits applicable to the credit facility apply with pre-arranged finance. This includes our fixed rates, fixed terms and fixed repayments, and tax benefits for commercial credit facilities.
What are the advantages of pre-delivery finance?
The benefits of arranging a loan well ahead of taking delivery of the goods may depend on individual objectives. For buyers of low stock and limited-edition models, it may be that they can confidently place their order or expression of interest and avoid the risk of missing out on their prized purchase.
Buyers can benefit from the assurance that will be approved for the loan amount required for the goods. Proceeding to pre-order without that assurance may lead to some nerve-racking moments when the goods are ready for purchase. Business owners may also benefit from being able to budget for asset investments well ahead of actual delivery.
Considering pre-delivery finance on a F-150?
The release of pricing on the new model Ford F-150 provides an ideal current example of how pre-delivery finance can benefit buyers. The latest model in the range, the Platinum, is due for availability in Australia early in 2026.
Ahead of the release, dealers are taking pre-orders now. Pricing guides have been released which can provide buyers with an indication of their loan requirements and the figures needed to apply for pre-approved finance. Secure conditional loan approval now with Jade so you can place your order and not miss out on this great vehicle.
For pre-delivery finance on your chosen model, speak with Jade Finance or request a quote online.
DISCLAIMER: NO LIABILITY IS ACCEPTED IF ERRORS OR MISREPRESENTATIONS ARE FOUND IN THIS ARTICLE. THE ARTICLE IS PREPARED AND PRESENTED FOR GENERAL INFORMATIVE PURPOSES AND IS NOT INTENDED TO BE THE SOLE SOURCE OF INFORMATION FOR MAKING FINANCIAL DECISIONS. THOSE REQUIRING GUIDANCE AND ADVICE SHOULD CONSULT A FINANCIAL ADVISOR.
