Car Loans – About, features & benefits

Car Loan Basics

Sometimes called a car loan, secured loan, regulated loan or a consumer loan this product is appropriate for customers using the car predominantly for personal use. A car loan is regulated under National Consumer Credit Protection Legislation which means anyone who assists in providing this product must be licensed By ASIC.

What is a car loan?

The loan is secured against the car and the financier pays the dealership or the supplier directly so the car may be purchased. The customer takes immediate ownership of the car at purchase subject to the financier registering a security interest against the vehicle. When the car loan is paid out the financier releases the security interest and the customer has clear title to the vehicle.

Who is suitable for a car loan

A car loan is appropriate for customers who wish to purchase a car and use the car predominantly for personal use.

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Features of a car loan

  • Agreed fixed interest rate with monthly and fortnightly repayment options
  • Terms range between 12- 84 months.
  • Deposit or trade in allowed
  • Balloon payment at the end of the term is optional.
  • PPSR encumbrance lodged so prospective buyer is able to check to confirm if the asset is currently under finance
  • Product is regulated by National Consumer Credit Protection Act
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Benefits of a car loan to you

  • Fixed interest means repayments are fixed which allows easy budgeting
  • Flexible terms allow you to tailor the repayment to suit your budget
  • Deposits and balloons also allow you to tailor the repayment to suit your budget
  • The financier has secured the loan against the vehicle which means the interest rate is lower than an unsecured loan
  • The National Consumer Credit protect Act affords the customer a high level of protection and allows easy comparison between lenders.