Why CarLoans.com.au?

PERSONAL CONSULTANT

At CarLoans.com.au you're not a number. You're a client. That's why, unlike others, we treat you like a real person. It's also why you'll deal with a real person. Every CarLoans customer like you deals with a personal consultant. You're not calling a call centre, where you'll talk impersonally to the next available operator. You'll talk to your own specialised car finance consultant who will manage your application and delivery - every step of the way. After all, you're a real person - so we'll give you a real person to deal with.

SPEED & EFFICIENCY

When you make the decision to purchase a vehicle, the last thing you want, the last thing you need, is to get bogged down in red tape. At CarLoans.com.au we know how to arrange car loans fast. We're professional, we're efficient - we're quick. We know exactly what reputable lenders need to process and approve your application in the shortest possible time. We work hard to make car finance easy for you.

YOU'RE IN CONTROL

We have access to a wide range of reputable Australian lenders, so we can present you with a competitive range of finance options - all in plain English. You can see the alternatives, and make relevant, clear-cut comparisons, quickly. We help you decide which car loan product, from which reputable Australian lender, suits you best. We prepare the options; you decide.

PROFESSIONAL ADVICE

At CarLoans.com.au, all we do is car finance. We are not general financiers; we specialise in automotive finance. It's all we do. So if you're confused about the relative merits of personal loans versus chattel mortgages versus novated leases, let your CarLoans automotive finance consultant explain the key differences and help you decide which one best suits your personal situation. We can ensure you get the right finance product at the right rate to maximise both your buying power and the tax-effectiveness of your next automotive acquisition.

Type of Car Finance

Personal Loan

A personal loan is a simple financial product for individuals in which the finance company lend the money directly to you, the consumer. Personal loans are available over a range of terms. The interest rate payable might depend on a range of factors, including credit history and whether or not the loan is secured by a physical asset.

Car Loan

A car loan is similar to a personal loan but might achieve a lower interest rate because the loan is secured by a financial interest in the vehicle being purchased.

Chattel Mortgage

A chattel mortgage is a business use loan product, available over a range of terms, and with a range of different 'balloon' payment options at the end of the term. The business owns the vehicle (the 'chattel') from day one, and the financier uses it as security (the 'mortgage') over the loan. The interest is generally deductible, depending on the proportion of business use, and if the business is registered for GST, the full GST component of the purchase is claimable as an input tax credit in the first BAS following the acquisition.

Commercial Hire Purchase

Commercial hire purchase agreements have fallen dramatically in popularity because of changes made to the GST treatment relating to them. They are therefore less attractive to companies and employees with a vehicle allowance. Most people and businesses in this position prefer the greater financial benefits of a chattel mortgage (see above).

Novated Lease

A novated lease is one of the most cost-effective and tax-effective ways for ordinary Australian employees to achieve car ownership. Basically, a novated lease is a three-way agreement between you, your employer and a finance company. The employee allows the employer to make deductions from their pre-tax salary to make the payments. The employer makes the deductions, and the finance company sets up the novated lease and manages it. Because the payments are made from the employee's pre-tax salary, some of the money that would normally be paid in tax is used to pay for the vehicle. So a novated lease increases the employee's buying power. It's also a great way to purchase a new car GST-free, even if you're not registered for GST.

10 Tips for Choosing the Right New Car

RESEARCH

Start here. Decide rationally exactly what kind of car you want. The size, the body type, the style of vehicle, and the 'must have' equipment items - do you require a proximity smart key, integrated GPS navigation system, dual-zone climate control air conditioning, electric seat adjustment, etc? Do you want a German luxury car, an affordable SUV, a people mover, a conventional sedan, a compact hatch, a ute or an all-terrain wagon? Write it all down, then go online and compare similar vehicles from competing manufacturers. There are almost 300 different vehicles on sale in Australia today - your challenge is to knock that down to a short list of no more than six highly similar vehicles. The huge advantage? The Internet makes comparative shopping a breeze - from your desk, in your lounge-room, or even on the bus. Make sure you read independent reviews - but beware any reviews that lack critical comments because they might be thinly disguised marketing material.

DRIVELINE OPTIONS

Powertrains are important. In general, the bigger the engine, the thirstier it will be, and the more performance it will deliver. In general, the more speeds offered by an automatic transmission, the smoother it will be. Four-speed automatics are old hat. Five or six will be smoother. Many automatics offer a semi-manual mode (sometimes called 'tiptronic'). This is useful when two people own one car, and one prefers auto, while the other want a manual - tiptronic means best of both worlds and is a good compromise. Diesel engines are generally more expensive than petrol ones, and also offer about 30 percent better fuel efficiency. That means greater cruising range on each tank of fuel in the diesel (a real plus for long-distance drivers) - and the extra price you pay for a diesel engine is often reflected in the resale price of the vehicle at trade-in time.

DON'T BE FOOLED BY ZERO PERCENT

Many deals sound too good to be true - generally because they are. Most zero percent finance offers certainly fall into that category. They are definitely a good marketing strategy - because they increase inquiry rates at dealerships - but they are seldom a good deal for customers.

Zero percent finance is actually a form of 'sub-vented finance' - where the interest is actually paid indirectly to the financier. In practise, how this works is the dealer pays the interest to the financier from the profit out of the sale of the new car. This is why, when a purchase is completed using a zero percent offer, there is little room, if any, to negotiate on the price of the vehicle.

When choosing finance it is essential to look at the overall deal rather than do what the marketers want - which is to see you focus exclusively on the zero.

It is almost always cheaper to negotiate a significant discount on the price of a new car, and arrange the most affordable independent finance available.

Eric H
9 April 2014

Just a quick note to thank you both for all the work, communication and effort in sourcing and getting me into my new car. Nothing was too difficult