Car Finance
Drive Your Dream Car with Our Hassle-Free Car Finance Options!
AAA Loans Australia, Office Locations.
Bundaberg, QLD
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Shepparton, VIC
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Nowra, NSW
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Rev Up Your Finances with Effortless Car Loans – No Matter Your Circumstances!
Secured Car Loans
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?
- Lower Interest Rates: Because the loan is secured by the car, our lenders will offer lower interest rates compared to unsecured loans.
- Longer Loan Terms: Secured car loans typically offer longer repayment terms than unsecured loans, which can make them more affordable for borrowers who need to spread out their payments over a longer period of time.
- Higher Loan Amounts: Because the loan is secured by the vehicle, lenders are often willing to lend higher amounts to borrowers with secured car loans.
- Risk of Repossession: If the borrower fails to make their loan payments, the lender may repossess the car to recover the amount owed on the loan.
- Credit Score Impact: Taking out a secured car loan and making payments on time can help improve a borrower’s credit score, while defaulting on the loan can have a negative impact on credit scores.
- Refinancing: Borrowers may be able to refinance their secured car loan to get a lower interest rate or better repayment terms.
Chattel Mortgage For Business / Self-Employed
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?
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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.
- In addition, the interest on the loan may be tax-deductible if the asset is used for business purposes.
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.
Unsecured Car Loans
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.
Comprehensive Loans.
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Frequently Asked Questions
Car Financing
What happens at the end of a chattel mortgage?
Similarly to a secured loan, once a chattel mortgage loan is repaid, the mortgage is released and the borrower owns the asset outright.
what’s the difference between a chattel mortgage and secured loan?
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.
Bad Credit Car Loans
What is considered to be bad credit?
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.
Can I get car finance with a bad credit?
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.