Car finance is a popular way to purchase a vehicle without having to pay for it upfront. Whether you’re in the market for a new or used car, there are various car financing options available to help you get on the road. In this blog post, we’ll explore the different types of car finance available in Australia and some tips to help you make the right decision for your needs. Bee Sure Financial are expert at all types of finance across over 40+ lenders. Feel free to ask us about anything! Call us on 1300 884 448
Types of Car Finance:
Secured Car Loan:
A secured car loan is a popular option for those looking to purchase a car. This type of loan uses the vehicle you’re purchasing as collateral, which means the lender can repossess the car if you default on the loan. Secured car loans typically have lower interest rates compared to unsecured personal loans because of the reduced risk to the lender.
Unsecured Personal Loan:
Unsecured personal loans are another option for financing a car. Unlike secured loans, these loans don’t require collateral, which means you can use the funds for other expenses. However, unsecured loans typically have higher interest rates than secured loans because they’re riskier for the lender.
Dealer Finance:
Dealer finance is offered by car dealerships, and it can be a convenient way to finance a car purchase. The dealer acts as the lender and offers the loan directly to you. However, dealer finance typically comes with higher interest rates and fees, so it’s important to compare rates and terms before accepting dealer finance.
Novated Lease:
A novated lease is a type of salary packaging where the employee leases a car and the lease payments are deducted from their pre-tax salary. This can provide tax benefits and make it easier to budget for car expenses. However, novated leases typically require the employer’s approval and can be complex to set up.
We hope this has shed some light on different options of finance that are available for you. Again, we are always happy to help, so feel free to drop us a line on 1300 884 448 or leave us an enquiry on Bee Sure Financial