Finance Focus #4 2007
Retained Interest &
Welcome to the fourth edition of Finance FOCUS for 2007.
This month we're focusing on "retained interest" - an early payout penalty buried deep in the Terms & Conditions of business-use car finance products from almost every Australian bank and finance company.
Retained interest can literally cost you thousands of dollars, so it's an important concept to understand if you are financing a car through a business, or financing a car in your own name for business purposes.
You can read our new article on retained interest & payout penalties and experiment with our Payout Penalty Calculator (more information on both of these below) to get a better understanding of retained interest & payout penalties for yourself - including how to avoid them.
We'd like to welcome some new additions to the Stratton team: Dionne Stevens, who is the new head our insurance division, as well as Karen Anderson, Nick Angelkovski, Gerry Giannakis and Brad Roach, all of whom join our ever-growing team of finance consultants.
New Article: Retained Interest & Payout Penalties Explained
The hidden charge that could cost you thousands.
When you finance a car (or other vehicle) with a commercial or business-use car finance facility - such as a Commercial Hire Purchase (CHP), Chattel Mortgage, Car Lease or Novated Lease - you are exposing yourself to a hidden penalty if you choose to payout the loan early.
This hidden charge is known as "retained interest" or a "payout penalty", and is applied by almost every vehicle financier in Australia. The worst part is, payout penalties can amount to thousands of dollars - the equivalent of having an interest rates many points higher - and you probably won't even be aware you are paying them.
Stratton Finance is one of only a handful of finance companies that can offer car finance with absolutely no retained interest payout penalties.
Our new article "Retained Interest & Payout Penalties Explained" takes an in-depth look at retained interest & payout penalties, covering what they are, how much they can cost you and how to avoid them.
Read the full article on our website: Click here
New Online Tool: Payout Penalty (Retained Interest) Calculator
To help you better understand how retained interest and payout penalties could affect you, we have added a new Payout Penalty Calculator to our website.
This easy-to-use calculator lets you try out different loan scenarios and payout timeframes, showing the size of potential payout penalties and how these penalties change the effective interest rate of the loan.
Try the calculator for yourself: Click here
Stratton rewards you for your referrals
Stratton Rewards is our referral and loyalty program, where you can earn points to redeem from over 1,000 rewards.
For more information, or to join now and earn 500 bonus points, visit the Stratton Rewards website.
Do you have a comment or suggestion about our newsletter? If so we'd love to hear from you - please send us your feedback and let us know what you think.
If you'd like a finance quote or more information about any of our products & services, please visit our website, call us on 1300 STRATTON (1300 787 288) or contact you finance consultant directly.
GENERAL ADVICE WARNING - We must inform you that the information in this e-mail is general advice only and is not specifically based on your own objectives, financial situation or needs. Before you act on this information, you should read any relevant Product Disclosure Statements and consult with a registered tax agent to ensure that this advice is suitable for you.
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© 2007 Stratton Finance Pty Ltd