FAQ: What are the features & benefits of a Car Loan?
What are the features and benefits of a Car Loan (Consumer Loan)?
Benefits of a Car Loan can include:
- Flexible contract terms, or length are available (ranging from 2-10 years)
- A residual can be applied to the loan, reducing the monthly instalments
- Borrowers have a choice of fixed or variable interest rates
- A deposit can be used (either cash or trade in) which reduces the size of the loan needed
- A tax deduction may be applicable if the vehicle is to be used for business purposes
- Lower interest rates are available as the loan is secured against the car