Tony and Jade are Melbourne born and bred. Married now, with a couple of growing kids, they are in the market for a car to replace Tony’s small ageing hatchback. It doesn’t take long for them to realise how many makes and models there are to choose from in a city as large and vibrant as Melbourne. Not only that, but since they can’t afford to buy a newer car outright, they will need to consider finance options which will suit them and their financial situation. So what are the car loan options available in Melbourne?
Personal Car Loans
A personal car loan might be just the thing for Tony and Jade. Personal car loans come in two types – the secured and unsecured loan.
Secured car loans are loans that are just for cars and the car purchased is “security” if the lender defaults. In this case, even though Tony and Jade would have ownership of the car, the financier is able to repossess the car if they default on their payments and cannot pay the loan. Because there is less risk to the lender, secured loans mean more competitive interest rates, low monthly repayments, low or no fees. Tony and Jade can use some of their saving toward part of the purchase if they wish to.
Unsecured car loans, quite simply, are a general personal loan. Taking out an unsecured loan means that Tony and Jade can use the money provided by the lender for more than just the car. So if Tony and Jade wanted to also fund new bikes as an example, they can take out the one loan for the total amount of the car and bikes. The loan provider cannot repossess the car if Tony and Jade default because the loan provider doesn’t have an interest in the vehicle. They offer a very flexible way of making a purchase, however this type of loan is more likely to have higher interest rates and incur fees because of this.
Business Car Loans
Tony needs to use the new car for his small business during the week. So, he and Jade might want to consider a no or low doc Business Car Loan. Whilst Tony and Jade will need to meet the loan’s lending criteria, this type of car loan is easiest for small business owners who may not have pay slips and other documentation that an employee would have.
If you want to find out more contact 123 Carz today.