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Car finance allows you to lower your initial cash outlay, freeing up funds for other expenses.
For businesses, it can enhance cash flow and may provide tax benefits (consult your accountant). Car finance also enables access to better vehicles without the need for full upfront payment and typically offers fixed interest rates and predictable repayments. Some options even include balloon payments or early payoff options, providing you added financial flexibility.

New car finance usually comes with more attractive terms, like lower interest rates and longer repayment periods, due to the reduced risk for lenders. This can make financing new cars more affordable on a monthly basis, even if the total purchase price is higher.

On the other hand, used car finance often comes with increased interest rates due to perceived risk, though the loan amount is generally smaller since the vehicle cost is lower. Both new and used car finance options allow flexibility in choosing a plan that aligns with your budget and needs.

A pre-approval is a preliminary assessment by a lender that determines if you qualify for a loan and how much you can borrow. This typically involves submitting an application, verifying income and credit history, and undergoing a credit check.

A pre-approval provides you with a clear budget estimate for car shopping, showing the maximum amount a lender might offer under certain conditions. However, it’s important to note that a pre-approval is not a final loan commitment—just a first step in the loan process.

Business car finance enables companies to purchase or lease vehicles, spreading payments over time to support cash flow and potentially gain tax benefits. Generally, the lender retains ownership until the loan is repaid. With a Chattel Mortgage, however, the business gains immediate ownership, using the vehicle as loan security. The key difference between business car finance and a Chattel Mortgage is that a Chattel Mortgage arrangement places the asset on the company’s balance sheet, allowing possible tax deductions on depreciation and interest, depending on eligibility.

Car finance for electric vehicles (EVs) can often come with better terms than hybrid or petrol vehicles, as some lenders offer lower interest rates or incentives due to EVs’ environmental benefits. Additionally, certain government subsidies or tax incentives may assist in further reduce the overall cost of financing an EV. Hybrid and petrol cars can still have competitive finance options, usually with more lenders to choose from. Ultimately, choosing between options depends on specific incentives, total vehicle costs, and individual priorities around sustainability and long-term savings.

The amount of car finance you can borrow depends on several factors, including your income, credit history, existing debts, and the vehicle’s value. Lenders assess your repayment ability by reviewing your finances and setting limits based on a percentage of the car’s value. Use our serviceability calculator to estimate borrowing potential or visit our quote tool for a range of rates and repayments. To speak with an Australian-based broker, request a callback or call 1300 787 288.

With so many lenders to choose from, finding the right car finance option all by yourself can be challenging. That’s why we aim to match you with an expert finance broker who will take the time to understand what you’d like to buy, your purchasing goals, personal details, income, and expenses, allowing them to create a tailored preliminary assessment and present options for car finance that fit your budget and financial goals.

Residual values and balloon payments refer to a lump sum due at the end of a car finance term. While often used interchangeably, they do slightly differ. Residual value is based on the car's estimated market value at the end of the agreement, and commonly found with a lease agreement. Whereas a balloon payment is set at an agreed amount to pay out at the end of the agreement, and typically found in car loans. Both options reduce your regular payments but require a larger payment at the end, which you can either pay off, refinance, or use to trade in the vehicle.

A novated lease is a salary packaging arrangement where your employer leases a car for you, deducting payments from your pre-tax salary to potentially reduce your taxable income. With a novated lease, the car typically goes back to the leasing company at the end of the term unless you choose to purchase it. In contrast, traditional car finance involves taking out a loan in your name, where you own the car after repayment.