Choosing The Right Car Loan

Hire Purchase, Chattel Mortgage, Lease, Novated Lease, Fully Maintained Lease, Consumer loan… there are so many financial products available in the market place, it can be confusing and often take more time to consider how best to pay for your car than it did to decide on the car you wanted to buy!

We believe a car loan should be tailored to suit your business or personal needs, even if you are a new business start- up, a first-time borrower or have a less than perfect credit history.

Our focus at Red Plum Automotive is to give you the information you need on finance based on you and your circumstances in the shortest time possible. How you ask? By dealing with real people who have years of experience in car finance. They have built long-standing and trusted relationships within the finance world which can provide access to competitive, accurate and up to date information, delivered quickly to you.

Let’s take a look at the 4 Key Car Finance Options available for personal and business loans;

Chattel Mortgage: Is for a business registered for GST, whereby generally GST can be claimed on the purchase price of the vehicle. Under this option you take ownership at the time of purchase. This is a popular and convenient way to finance your vehicle due to the flexible nature of the product that can be 100% financed or equity can be added by way of deposit or trade, in addition to the tax deductions available.

Lease: Great option if you don’t want to put any equity into the finance. It suits companies, partnerships, sole traders and individuals who use the car for business and claim the business proportion of the repayment as a tax deduction. This structure enables you to keep your cash flow handy whilst choosing a repayment structure that suits your needs. The difference here is the financing company owns the car for the term of the lease. Ownership can then be transferred after the residual amount owing is paid, trade it in, or re-finance.

Hire purchase: During an agreed upon term regular repayments are made to the financier who retains ownership of the car until the final payment or end of the term when the title is transferred to you. This flexible product allows you to contribute equity via trade/cash in conjunction with a balloon payment at the end, enabling you to structure repayments that best suit cash flow.

Consumer Loan: If your car is for private use you can structure a loan over a period of 1 – 7 years, and have the flexibility of having a deposit to reduce the repayment or finance the full purchase price and use your funds for another worthwhile purpose. You take ownership of the car at the time of purchase.

Take advantage of fast approval times (often within 2hours*) by either completing the online application form or chat to us online and let Red Plum Automotive continue to save you not only money but time.