Vehicle Loans
When you’re in the process of buying a vehicle it is very common to get caught up in the moment and just go with the easy finance option that is put in front of you. My Finance Consultants has access to over 20 different vehicle lenders, this ensures that you can obtain the right lending solution for your individual circumstances.
Whether you’re looking for a vehicle for business or personal use, we will make the process of financing a vehicle a straight forward and fast process. We have particular expertise and capability in arranging finance for established businesses that are either purchasing new vehicles or upgrading to a newer model. In many cases we can arrange vehicle finance for businesses without the need to produce financial reports or tax returns.
My Finance Consultants can help you obtain competitive vehicle finance interest rates and flexible repayment structures to suit your individual needs. Speak to us about the most competitive vehicle finance deals before you go to the car yard. We can definitely put you in a position to drive a hard bargain!
Business use vehicle finance
When it comes to business use, there are four different types of vehicle finance available to borrowers. Which one you decide to go with will be dictated by the tax implications of each.
Chattel Mortgage
A chattel is an item with wheels such as a car, motorcycle, truck, trailer or caravan. A mortgage is an interest registered on the chattel by the lender. In the event of default, the lender has a right to repossess the chattel and recover the unpaid funds from the sale proceeds. This is the lender’s security for providing the funds to purchase the chattel. Therefore, a chattel mortgage is a loan to purchase a moving asset with a registered security interest until the loan is paid off.
Commercial Hire Purchase
A commercial hire purchase is when the lender purchases the vehicle on your behalf and you hire it from them. At the end of the hire term, with a final lump sum payment known as the residual value, ownership of the vehicle transfers to you with a clear title. It’s similar to a chattel mortgage, except you own the vehicle at the end of the contract instead of at the beginning.
Finance Lease
A finance lease is similar to a commercial hire purchase with the exception that there is only an option to take ownership at the end of the term, rather than it being automatically transferred after the last repayment. Therefore, the repayments are viewed as a rental rather than a principal and interest amount.
Operating Lease
An operating lease is where the asset is rented for a set term and returned with no option for ownership. The payments that are made reflect a rental relationship, however unlike a finance lease it also covers agreed maintenance and administration costs. For example, if the operating lease was for a vehicle it could include scheduled servicing within specific mileage each year. If you do not want to assume residual value risk and prefer to have all expenses wrapped into a single forecastable amount, this can be a great product for you.
Personal use vehicle finance
When it comes to personal use, there are two different types of vehicle finance available to borrowers. These can be distinguished by whether you prefer to own or lease the vehicle.
Secured Vehicle Loan
With a secured vehicle loan the lender funds the purchase and you own the vehicle from the start. Depending on the lender and sale type, the funds are either paid directly to the dealer, current owner or to you directly. The lender secures the loan by registering an interest over the vehicle which is recorded on the Personal Property Security Register.
Novated Lease
A novated lease is an agreement between you, your employer and the lessor. The lease component refers to the fact that your employer is leasing a vehicle from the lessor. Novated refers to you being responsible for the employer’s lease obligations by making repayments as direct deductions from your pre-tax income.
When you’re setting up the novated lease there is a residual amount determined, this is a lump sum repayment due at the end of the term and allows you to own the vehicle. Alternatively, you can give the vehicle back, not make the balloon payment and opt for a new vehicle.
The benefit of a novated lease is that you can reduce your taxable income and consequently the tax payable. It is a great product if you’re looking for a hassle free solution to upgrade your vehicle every couple of years. You can even have the lease payments include the upfront and ongoing costs of registration, insurance, servicing, maintenance and repairs.
Why choose My Finance Consultants?
We do all of the legwork
We compare hundreds of home loan options from a wide choice of lenders, including the big banks and specialist lenders. We handle every step, having a thorough process in place to qualify you with our lender panel to find the most suitable lending options for you. We organise all of the required paperwork, order lender valuations, liaise with your real estate agent and conveyancer for a smooth transition to settlement.
We provide a convenient service
Mortgage Brokers save you the time and hassle involved in applying for a home loan - from application through to settlement. We'll meet at a time and place that best suits you, to establish your needs and preferences. We then do all the research and running around to manage every step of the application process. This saves you shopping around - as we do it all on your behalf.
We provide professional advice
We are fully trained, and accredited with every lender we represent. We are full members of the Mortgage & Finance Association of Australia and we have many years of industry experience. We also have a number of consumer protection initiatives in place to protect you - our valued clients. As mortgage professionals, we seek to guide you through the lending process to help you make better financial decisions.
We help you select the right home loan
Our first priority is helping you select the home loan that’s right for you, now and into the future. Your Mortgage Broker will save you the time and hassle associated with shopping around for a home loan, they will also guide you through the home lending process to help you make better choices with your personal finances.
We will always try to save you money
We use comprehensive software which helps us pinpoint the most suitable and competitive home loan for you. Typically, our service can help cut the current interest rate you are paying as well as reduce your fees and monthly repayments. Using a Mortgage Broker is also a great way to figure out a strategy to maximise your borrowing power.
We don’t charge you a fee for our service
There is no charge to you for our services because the lender pays us a commission once your loan has settled. We do charge a commitment fee for home loan pre-approval applications, however we will refund this to you upon settlement of your home loan. We will always aim to provide a trusted, friendly and professional mortgage broking service.
Our clients have been saying some great things about us!
Whatever your goals, a competitive vehicle loan will get you there faster!
If you’re looking for a vehicle for business or personal use, we will make the process of financing your new vehicle a straight forward and fast process. Whether you're buying your first vehicle or upgrading to your next vehicle, we can help you make the right decisions and stay on top - whatever your vehicle loan needs.
We'll compare more than 20 leading banks and lenders, as well as hundreds of vehicle loan options to find one that's right for you. No matter what kind of vehicle loan you're interested in, you'll enjoy expert lending advice from a Mortgage Broker you can trust.
Our industry knowledge and sophisticated software allows us to assess and compare the hundreds of vehicle loans that are available in the marketplace, we will calculate your borrowing capacity and identify which lenders you will qualify with.
If you're ready to start your vehicle loan journey, give our friendly team a call on 1300 381 955 or visit the Book Appointment section on our website.
FAQs
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Some lenders will allow you to borrow up to 80% of the value of the vehicle. Others may extend this as high as 150%, allowing you to pay for on road costs such as stamp duty and insurances. To be approved for a higher loan to value ratio loan, you will usually need to have a stable source of income and a good credit rating.
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Generally speaking, you will not have to pay a deposit if one or more of the following apply:
Your business has been in operation for more than 2 years
You are a homeowner
You have good credit history
A no deposit vehicle loan is a secured loan for the full purchase price of the vehicle. You'll still need to cover the costs associated with registration and comprehensive vehicle insurance. When you buy a new vehicle, you'll be more likely to qualify for a loan without a deposit than if you buy an older vehicle. Each lender has strict guidelines about the loan to value ratio that they will allow.
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Common vehicles that you can obtain finance on include passenger cars, luxury cars, super cars, classic cars, import cars, caravans, motorcycles, trucks and prime movers. Depending on the kind of vehicle that you want to purchase, there could be limits on the age of the vehicle and the size of the balloon payment. A certified inspection could also be required if it is a private sale. Each lender has their own lending appetite. If it has wheels, chances are we can get you the finance for it!
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In the event of default, the lender will lodge the details of the default on your credit file. The lender’s registered interest gives them the right to repossess the asset and have the first claim on the proceeds of the sale. Once the loan has been paid off, the registered interest is removed and this is what is known as a clear title.
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Yes. During the term of the loan if you want to sell the vehicle, prospective buyers can search the Personal Property Security Register and identify if there is a registered lender interest. This needs to be removed prior to the signing of registration papers by paying out the interested lender.
If it is a dealership trade-in they will be accustomed to paying out the lender directly. Although it is common practice, you may find private sale buyers are not comfortable with that. In that case, you might need to pay out the lender first. This could involve using your savings, equity from your home or an unsecured loan.
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Depending on the vehicle that you’re after and your businesses profile, there can be requirements in relation to the length of time your business has to be registered. The more specialised the vehicle, the longer you will need to be registered.
As a general rule of thumb, your business will need to have an active ABN registration for at least 12 months. Your business will also need to be registered for GST. All lenders have different credit policies, there are specialist lenders who will even consider 1 day ABN registrations if you have been in the industry for 5 years.
To access the widest range of vehicle loans, a 24 month ABN and GST registration is preferred. Ask your trusted Mortgage Broker if they have access to a lender that can help you!
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This depends on the purpose of the asset. The purpose is defined by the dominant percentage of use, for example if it is 51% business use, then it is deemed business purpose and should be purchased with a chattel mortgage, commercial hire purchase, finance lease or operating lease. There will be varying tax implications and impacts on your borrowing capacity for future credit facilities. To avoid any confusion, get in touch with your trusted Mortgage Broker so that they can guide you through the process.
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There are four tax implications when you purchase a vehicle in your business name, these include:
GST
Depreciation tax expense
Interest tax expense
Whole repayment expense
The distinguishing feature for what tax implications apply is who holds ownership and whether there is an intention to transfer ownership later on. We always recommend that you speak with your trusted accountant to obtain professional tax advice.
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Yes. However, it depends on the size of the repayments. Vehicle finance repayment terms generally range from 12 to 84 months.
The longer the term, the more time you have to pay off the vehicle loan, and the smaller the repayments will be. This has less impact on your future personal borrowing capacity and vice versa.
Your trusted Mortgage Broker is experienced with serviceability assessments, they can simulate different scenarios to help you get it right the first time.
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All lenders will require the following documentation:
100 points of identification
Statement of assets & liabilities
If applicable, details of your ABN and GST registrations
If applicable, PAYG applicants will need to provide a copy of their most recent payslip
If applicable, a rates notice to show proof of property ownership
Business owners that own property and have been in business for more than 24 months may be able to get their finance application approved without needing to provide any tax returns or financial statements.
If you don’t meet the above criteria, depending on the lenders self-employed credit policy, full documentation loans will likely require the following:
Last 2 years business tax returns & financial reports
Last 2 years individual tax returns & notice of assessments
Last 12 months ATO integrated client account and integrated tax account
If you don’t meet the above criteria, depending on the lenders self-employed credit policy, low documentation loans will likely require the following:
Latest BAS statement
Last 12 months ATO integrated client account and integrated tax account
Accountant certified declaration of income
Please note, this list is client dependent and will be tailored to your unique scenario.
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Yes. A car dealer is not a finance or credit expert, nor do they have access to the selection of lenders like we have - often car dealers will try to push their own finance products. We have access to over 20 different lenders, it is likely that we can get you a better deal. Borrowers need to keep in mind that the interest rate is not the biggest driver of cost. The ability to make extra repayments or payout the loan early can make a significant difference to what you actually pay overall.