Motor Vehicle Solutions

Vehicle Finance for Individuals

Vehicle Finance for Businesses

Business Finance

Business Finance Information

Salary Packaging

Salary Packaging

Vehicle Loans - How Does A Vehicle Loan Work?

Under a Vehicle Loan the financier advances funds to the customer to purchase a Vehicle.
The customer takes ownership of the vehicle at the time of purchase, and the financier takes an interest in the vehicle as security for the loan.
Once the contract is completed, the financier lifts their interest in the vehicle, giving the customer clear title.

Benefits of a Vehicle Loan!

Flexible contract terms ranging from 24 to 72 months (two to seven years)
A balloon value can be applied to the contract enabling the monthly 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 Vehicle Loan Suit?

A Vehicle Loan is suitable for individuals who wish to purchase a late model Vehicle and do not have significant business use of their vehicle or the option of novated leasing (salary packaging)

Tax Implications of a Vehicle Loan

As a Vehicle Loan is a personal finance product, only normal tax deductions for depreciation and running costs can be claimed (on a pro-rata basis according to the percentage of business use).