Greg has just been transferred to Darwin by his company. It will be a five year transfer, so he hasn’t sold up everything at home in Adelaide. He does, however, need to sell his old Mazda. While he’s in the Top End, Greg will need a robust, reliable car. He also plans to do some exploring while he’s in Darwin; Kakadu, and East Arnhem Land; so he’s going to need a 4WD. Greg decides a car loan would be the best option for purchasing his next set of wheels. So what are his options in Darwin?
Personal Car Loans
There are two types of personal loans for Greg to weigh up: the secured and unsecured car loan.
Greg firstly looks at secured car loans where funds are made available by the lender solely for the purpose of buying a car. Greg likes the concept of the lower interest rates and fees offered on secured car loans. It will save him money over the life of the loan. He realises that he can use some of his own funds as well as the loan funds to buy the car meaning he can use the money gets from selling his Mazda. Greg isn’t so keen on the idea of repossession where the lender can demand the car back if he has trouble paying. Basically, the lender has an interest in the car.
Greg also considers an unsecured car loan, another term for a personal loan. If he needs more money than just that needed for the car, an unsecured car loan is the answer. Greg understands that this makes it a flexible option. However because the lender does not have an interest in the car, the risk to them is higher and so they pass this on as higher interest rates.
Business Car Loans
Greg’s partner, Peta, is also moving with him to Darwin. She is a CPA and wants to set up her own consultancy. Peta knows the benefits associated with buying a car using a business loan, and she’s considering a no or low doc Business Car Loan. These loans are subject to lending criteria, however, they offer a fuss-free way to arrange car finance, especially for the small business owner.
To find out more. Contact 123 Carz today.