Types of Car Loans

Exploring your car loan options

Are you thinking of getting a car loan? You'd benefit from understanding the different types of car loans available to you. Car loans are a long-term commitment, so it’s worth taking the time to do your research and review the different types of loans on offer.

Asking for help from Positive Lending Solutions can help to save you time, money and stress. We have decades of industry experience and can quickly and efficiently explain car loan variations to you.

Different types of car loans

There are various types car loans available depending on your financial circumstance and employment status. Each loan is tailored for cost efficiency and convenience to the borrower. Take a look at our list of loans to help determine what'll best suit you.

Chattel mortgage

In a chattel mortgage, the car is used as security for the loan which often mean lower interest rates than on other types of car loans.

Fixed repayments enable the lender to supply money in advance of buying the vehicle – however, if the loan is not paid as agreed, the lender can repossess the car.

With a chattel mortgage, you can decide whether to finance the total price of the vehicle or make an upfront deposit. Repayments for a chattel mortgage are exempt from GST and interest charged is tax-deductible.

Novated lease

This type of business car loan involves three parties – you (the borrower), your employer, and the lender.

With a novated lease, your repayments are taken out of your pre-tax salary by your employer who is responsible for paying the lender. You are responsible for other costs such as registration and insurance.

At the end of the lease, you have the option to buy the car, which can be your preferred choice of vehicle.

Low doc car loans

Often business car loans, in particular, require you to submit a large amount of information and different documents to a potential lender. Depending on your circumstances or credit history you may struggle to do this.

A low doc car loan can be a great solution for business owners, people who are self-employed or those who aren’t able to submit a tax return. Don’t panic – we can help get the right type of car loan for you even without certain documents.

Refinance car loans

If you already have a car loan, ask yourself whether you’re happy with the terms of the loan and the interest rates that you’re currently paying.

Refinance car loans can be an excellent solution for those looking for a better deal – saving you hundreds or even thousands of dollars over the term of your car loan.

Bad credit car loans

There are many reasons why you may have bad credit but don’t worry – having bad credit doesn’t mean that you can’t get a car loan. There are types of car loans specifically designed for people with bad credit and finding the right one for you could help you get back on track financially.

With a bad credit car loan, you could get the vehicle that you need to get you from A to B, transport your family around or make sure you’re always at your job on time. Whatever you need to do to improve your credit rating, it’s often easier with the freedom a car can offer.

The right car loan for you

When you’re deciding which is the right type of car loan for you, you’ll have to think about both your personal and financial circumstances.

Consider the following factors which may influence the best type of car loan for you:

• How you’ll use the car – whether it’ll be primarily for business or leisure
• What type of vehicle you want to buy and the rough price range
• Whether your employer offers the type of business car loan that you’re interested in
• Your monthly expenses and how much you can afford to spend on repayments
• Whether you want a fixed or variable rate of interest on your car loan
• Your current tax situation and how you do your accounting each quarter

Ask for help

Positive Lending Solutions always aim to make the car loan solution as positive and efficient as possible. With our decades of experience and access to a wide range of lenders, we can help you to understand the different types of car loans available to you – saving you time, money and stress.