FAQs

Most private buyers will suit a secured vehicle funding product where the lender accepts the vehicle as suitable credit. With much older vehicles which are not considered suitable security, borrowers may consider an unsecured product.

Commercial operators can select from Lease, CHP and Chattel Mortgage to fund new vehicles.

All applications are assessed individually by lenders when preparing rate offers. ABN holders with strong financials and good credit can be offered very attractive rates.

Interest payments on commercial funding is tax deductible. Lease payments are deductible. CHP and Chattel Mortgage deliver tax deductions with depreciation of the vehicle.

Highly attractive rates can be achieved on used vehicle funding. Lenders assess the age and condition of the vehicle as well as the creditworthiness of the applicant when making rate offers.

Applicants with strong financials and a good credit profile are typically offered the best rates. Improving the credit position may improve the prospects of achieving a lower rate.

A balloon is that portion of the total CHP or Chattel Mortgage that is due at the end of the term, in full.

Most vehicle funding products are secured at a fixed interest rate. That rate will then remain constant over the complete time of the funding. Some unsecured credit may be arranged at a variable rate which is subject to change over time.

The term offered on vehicle funding can vary with individual applications, the amount borrowed and other aspects of the application. Terms of 4-7 years are typical.

To be eligible for consumer credit, applicants must be over the age of 18 years. New drivers over 18 years can apply for credit.

Commercial operators without financials can apply for low doc and no doc options through specialist brokers and lenders. Good rates can be achieved and applications approved based on strong turnover for some applicants.

Rates are mainly determined by the creditworthiness and the financials of the applicant rather than the type of vehicle. The amount requested in the loan may also impact the rate relevant to the applicant’s credit profile.

Chattel Mortgage and Commercial Hire Purchase offer slightly lower rates than Leasing.

The amount requested can impact the rate offered when considered in relation to the credit profile of the applicant. Where no deposit funding is requested this may influence the rate. Applicants may discuss with their broker or lender if reducing the amount requested will result in a lower rate offer.

Rates can vary for individual applicants. But buyers can refer to current advertised lender rates and use an online credit calculator to work out estimated repayments with those rates or change the rate entered to make comparisons.