June 05, 2015
Is it time to upgrade your wheels to something new? Need finance, but don’t know where to start? Mortgage Choice can get you in the driver’s seat sooner.
With a consumer motor loan, the borrower owns the asset from the start of the loan agreement and the lender registers their interest over the asset. These kinds of loans are repaid over a three year period, on average, but the repayment term could range from 12 months to five years. The interest rate on a motor is typically lower than a personal loan – often 2-3% lower.
If you want to reduce the size of your regular repayments, you can choose an end of loan term option called a 'balloon' payment. A 'balloon' repayment allows you to make lower monthly repayments over the life of the loan, and to make a large, lump sum payment at the end of the loan term. Balloons range from 35-50% depending on the loan term.
To help you get the green light for motor finance, you will be required to supply your Mortgage Choice loan consultant with information about the vehicle you are buying. This includes whether the vehicle is new or used, if it is being purchased through a dealership or through private sale. The loan consultant will also need evidence of income, such as recent payslips or tax returns (if self-employed).