Our secured car loans are a popular option for those looking to finance their car purchase. With a secured car loan, the vehicle is used as collateral against the loan, which often results in a lower interest rate compared to an unsecured loan. This type of loan can be suitable for both individuals and businesses.
What are the pro’s and Con’s of Secured car loans?
If you’re looking to purchase a car for business purposes, a chattel mortgage might be the right choice for you. This type of loan allows you to take ownership of the vehicle from the outset, while the lender holds a mortgage over the asset as security. Chattel mortgages can be tax effective, and interest on the loan may be tax-deductible if the vehicle is used for business purposes.
What are the main business benefits of a Chattel Mortgage?
One of the benefits of a chattel mortgage is that it allows businesses to claim the GST paid on the purchase of the asset as an input tax credit on their next Business Activity Statement (BAS) if they are registered for GST.
Looking to buy a new car for at least 50% business use? A Chattel Mortgage could be the right choice for you. Get in touch with our expert car finance team to discuss your options today.
For those who do not wish to provide collateral, unsecured car loans offer a viable alternative. An unsecured car loan is not backed by collateral, which means that the interest rate is generally higher than a secured loan. This option can be suitable for those who are unable to provide collateral or do not wish to secure the loan against their vehicle.
Lending options for buying a new car
At AAA Loans Australia, we pride ourselves on offering a variety of car loan options to suit your individual needs. Our loan application process is simple and straightforward, with competitive interest rates and flexible loan terms available.
Contact us today to discuss your car finance options and get started on your journey to owning your dream car.
Similarly to a secured loan, once a chattel mortgage loan is repaid, the mortgage is released and the borrower owns the asset outright.
A chattel mortgage is a type of loan that is comparable to a secured car loan, but is exclusively available for vehicles that are used for business purposes for at least 50% of the time. In a chattel mortgage, the lender provides the funds required to buy the vehicle, which is considered as the “chattel”, or movable property.
The range of what constitutes a bad credit score in Australia may vary depending on the specific credit scoring model. However, typically a credit score falling within the range of 300-550 is regarded as poor.
It is possible to obtain a loan even if you have a poor credit score, as there are lenders who specialize in providing financing to individuals with similar credit histories. Having a low credit score does not necessarily preclude you from securing a loan, but your choices will be restricted compared to those with a good credit rating.
