All her life, Florence dreamt of taking photographs. And while it became her hobby, living in a major city like Sydney, means dreams and reality don’t often mix. Now, things have changed. After leaving her old job to study, Florence is going to pursue her dream and become a professional photographer. There is one hitch in her plan. To get around, visit clients and various locations, Florence is going to need a good, reliable car. And for that, she’s going to need to take out a loan. So what are the car loan options available to Florence in Sydney?
Personal Car Loans in Sydney
There are two types of personal loans available to Sydney-based Florence may wish to consider: the secured and unsecured car loan.
Secured car loans mean that the car purchased is security for the lender. They have a direct interest in the car and repossession can occur if Florence defaults on payments. The loan funds can only be used to buy a car. This is a good option for Florence if she wants the cheapest possible loan as interest rates can be cheaper because there is less risk for the lender. This equates to low monthly repayments for Florence and usually no fees. She can use some of her own money as well as the loan funds in the purchase.
Unsecured car loans are more like a general personal loan. The benefit of this type of loan is its flexibility. If Florence was to obtain an unsecured loan, she could take some extra cash on the loan for purposes other than buying the car; great if she wanted to fund her studies with the same loan. The finance provider won’t own or have an interest in Florence’s car so repossession is not possible, even if she can’t meet the ongoing repayments. The flip side is that unsecured loans usually mean a higher interest rate and the possibility of fees to cover the increased risk to the finance provider.
Business Car Loans
Or, because she is working for herself, has set up her own small business, and has an ABN, Florence may want to consider buying her car using a no or low doc Business Car Loan. A business car loan is subject to lending criteria, but offers an easy way to get finance for a vehicle purchase, especially for the small business owner.
Contact 123 Carz today.