What you need to know!
IS A CAR LOAN THE BEST OPTION FOR ME?
A ‘Car Loan’ may be the best option for you however it is advisable to call one of our finance specialists to see if it can be set up in a more tax effective finance structure.
WHAT IS AN UNSECURED CAR LOAN?
An ‘unsecured car loan’ is when the finance isn’t used against the asset (in the case the motor vehicle). Usually an ‘unsecured car loan’ reflects a slightly higher interest rate but you can potentially have the ‘unsecured car loan’ for a longer period of time.
HOW DOES A CHATTEL MORTGAGE WORK?
A chattel mortgage is used for financing assets such as vehicles and equipment. The customer retains full use of the vehicle or equipment but the financier retains a mortgage on the asset until the loan is paid.
WHY DO I WANT A CHATTEL MORTGAGE?
- Choice of loan term
- Get the vehicle or equipment that you want
WHO BENEFITS FROM A CHATTEL MORTGAGE?
Chattel mortgages are for commercial purposes, so are perfect for small to medium-sized businesses.
CAN I BUY THE VEHICLE AFTER THE LEASE IS OVER?
Yes. You have the option to purchase the vehicle or equipment by paying off the balloon payment.
HOW DO I TAKE OUT A LEASE?
Just call Jim’s Vehicle Leasing and speak to one of our friendly consultants. Our five-star process takes less than 48 hours from when your application is submitted.
HOW DO I KNOW WHICH LEASING ARRANGEMENT IS RIGHT FOR ME?
We are experts at assessing your budget and situation to help you find the most appropriate vehicle leasing plan for your needs.
WHAT IS RESIDUAL VALUE?
The residual value is the remaining value of the vehicle after depreciation.
HOW DO I EXTEND MY LEASE?
One of our consultants will contact you 3 months before the end of your lease to discuss your options.
WHO IS ELIGIBLE FOR A CAR LOAN?
A car loan is for anyone who wants to buy a car for personal use.
WHAT ARE THE MINIMUM AND MAXIMUM TERMS FOR A NOVATED LEASE?
A novated lease usually takes place over a period of 1-5 years.
CAN I TERMINATE MY LEASE?
Yes. You can pay out your lease or chattel mortgage at any time. Just notify us for an account payout.
WHAT HAPPENS ONCE MY LEASE IS TERMINATED?
There are several different pay-out options once the lease is terminated:
- Pay out the lease and take ownership of the car
- Refinance and continue leasing
- Sell the car, payout the loan and lease a new car
A repayment of the outstanding principal sum made at the end of a loan period.
Car finance is a term used to describe the process of borrowing money to buy cars or other vehicles.
A car loan is money lent by the financier to the customer in order to purchase a vehicle.
A comparison rate is there to tell you the “true” cost of a loan so you can compare one lender with another. A comparison rate incorporates all of the upfront and ongoing fees into the repayments, not just the interest. A comparison rate is a legal requirement for all lenders.
A comparison rate takes into account all of the following:
- Loan term
- Loan amount
- Repayment frequency
- Fees and charges
- Interest rate
Remember. A comparison rate, while a good guide, does not necessarily tell you everything you need to know. This is because comparison rates can change depending on the size and term of the loan. Make sure you ask Jim.
EARLY TERMINATION FEE
A fee payable if the lease contract is ended before the agreed time.
EFFECTIVE INTEREST RATE
An effective interest rate seeks to explain the full cost of the loan, including fees, charges and payments specific to your loan’s size and term.
A fully maintained lease combines all of the vehicle’s running costs into one regular payment. These payments can include fuel, tyres, maintenance and registration.
Maintenance involves the general upkeep of the vehicle such as servicing, tyres, oil, and so on. It does not include accessories added after the commencement of the lease.
LUXURY CAR TAX
The Luxury Car Tax is a tax on vehicle purchases above $61, 884. The tax amounts to 33% of the GST on top of the vehicle cost. $61, 884 is the current, Australian Luxury Car Tax Threshold. The Luxury Car Tax threshold for fuel efficient vehicles is $75, 375.
In accounting, residual value is another name for salvage value, the remaining value of an asset after it has been fully depreciated. The residual value derives its calculation from a base price, calculated after depreciation.
SALE AND LEASEBACK
Sale and Leaseback means that the financer purchases a vehicle on the customer’s behalf and leases it back to the customer at an agreed rate.