How do I buy a car with a Credit One car loan?
Getting behind the wheel with Credit One car finance has never been easier. When you contact the team at Credit One, a broker will escort you through the smooth process of applying for the loan and all information regarding the vehicle loan terms. The step-by-step process on car loans includes:
- You begin your application, providing relevant supporting documents to demonstrate financial ability.
- You will be presented with your options for car loans from our partnered lenders by your broker, and you can select a lender.
- Once your car finance has been approved, if you are buying a new car, we can give your dealership the good news. Otherwise, we can wait until your vehicle is in stock.
- If you are buying a used car from a private vendor, you can let the seller know and start planning the pick-up.
- Repayments will commence once the loan has been settled.
- If you are buying a new car for work, your broker will look after everything with the dealer regarding tax invoice requests and payment from the financier of the unit before collection.
How much can I borrow with a car loan?
The amount you will be entitled to borrow with a car loan secured through Credit One will vary from person to person. Due to the diverse nature of our client's financial history, the rates and amounts available on car loans are always different.
We are determined to get the best secured car loan outcome for our clients and work with you to get the best interest rates through our partnered lenders, based on a broad range of loan amounts. Personal loans typically begin at $5,000 and can exceed over $100,000. The amount available to you will most likely fit within that range.
The best way to find out how much you can borrow on car loans is to set up a consultation with one of our specialists today, and after a brief evaluation, we’ll be able to conclude how much you are eligible to borrow.
With business car loan repayments, what is a balloon payment?
A balloon payment is a lump sum that is due at the end of your loan. Opting for this type of payment structure can lower your monthly loan repayments to free up business cash flow. However, the loan amounts of your monthly repayments alone will not pay off the debt completely. It is important not to forget about the final amount due at the end. You will also pay more interest over the duration of the loan. Discuss with your Credit One consultant for more information about this option.
Can I get a car finance option from a private sale?
When you go directly to one of the big banks or another lender, you will often be refused a personal loan for any purchase made through a private vendor. With Credit One, we have access to a more diverse range of lenders that we negotiate with you for a car finance option.
No matter the selling circumstances, we can get you matched up with a financier, and you will have access to our extensive brokerage service. Once you've got the car of your dreams worked out, built a guide of your payments through our car loan calculator, then you're on track to securing a personal loan through a partnered lender. After this, you can begin your car loan repayments.
What do I need to provide when applying for car finance?
It depends on the nature of the car loan you are looking to secure through one of our partnered lenders. For a personal loan, all that you will need is to sign the privacy forms that we send you, plus supply relevant financial information like pay slips, bank statements, your driver's license, plus applicable rates notices or rental details.
For a business car loan, you'll need to supply different documents. We'll need your Australian Business Number (ABN), and relevant business financial statements, including a balance sheet and a profit and loss statement. Finally, we'll need tax return statements from the last two years/
Can I still secure a personal loan with a bad credit history?
Poor credit history is likely to lower your chances of getting a personal loan, or at the very least favourable interest rates, from one of our partnered financiers. However, you are not entirely out of luck.
Over our 20 years in business, we have developed strong relationships with all our lenders, and we work hard to negotiate a positive outcome for you. Our goal is to match all our clients with a loan, regardless of lending criteria. We are also fortunate enough to have other options that other finance firms do not have available to them, such as accreditation with private financiers to help get you the best car loan interest rate based on your personal objectives.
Should I finance a new car or a used car?
Giving our customers the option between financing a new or used car puts Credit One miles ahead of other brokers and financiers. We are glad to be able to offer access to car loans for more customers at an interest rate that suits their financial situation. Financing a new or used car is part of additional lending criteria, that will impact the interest rates on your available car loans.
It is important to realise that the interest rate available to you will vary between whether you choose to buy a new or used vehicle. Various factors like vehicle age, condition, service requirements, and history will all be considered by our brokers when determining the most suitable car loan options for you.
Brand new cars will attract a lower interest rate than a second-hand vehicle as a general guide. Since most financiers will solely permit a loan period relative to the age of the vehicle, any financier will consider the age of the vehicle at the beginning and end of the lease period to determine your eligibility. Whether it’s a new car loan or a used car loan, Credit One will help you out.
What should I consider before applying for car finance?
The most important thing to consider before applying for car finance is whether a repayment system suits your unique financial circumstances. Credit One is unable to provide financial advice on your suitability for car finance. Instead, we recommend your consult with an independent financial planner or accountant to see how car finance would work for you.
Consider also whether or not you can afford to make a down payment. Paying off part of the cost with a down payment means you will pay lower monthly repayments over time to pay off the rest of the car. The more you can afford to put down, the better terms you are likely to be offered by a lender.
Financing a car is not a decision to be taken lightly, but once you’ve made your mind up, and sought the relevant advice, get in touch with the team at Credit One, who will help get the ball rolling on your car finance sooner.
Can I refinance my car loan?
Yes, with Credit One you can refinance a car loan. The process of refinancing involves obtaining a new loan to pay off a past or current loan. By refinancing, you may be able to lower your interest rate and monthly payments or even change the terms of your loan.
How much can I borrow for a car loan?
Like any other loan, the amount that you can borrow for a consumer car loan will depend on your income, debt history and the value of the vehicle which you intend to buy. At Credit One, we can broker car loans that are up to the full purchase price of the vehicle.
It is your choice what size loan you wish to apply for. Our team can help you make the best financial choice by further understanding your financial history. Your financial history and credit score may limit the amount a lender will approve you for.
Are there any tax benefits for car loan?
In Australia, the tax benefits for a car loan will depend on the use of the vehicle. Here are some ways people may use their vehicle and the tax implications:
- Business Purposes: You may be able to claim a tax deduction for the interest of the car loan.
- Personal Use: In this case you will not be able to claim a tax deduction for the interest and other expenses related to the car loan. You may consider a novated lease if you are looking for tax benefits.
Under business purposes, you can claim the cost of the car loan as a tax deduction. Business purpose can be categorised as visiting clients and travelling for work.
If you intend to make this claim, it is important that you keep accurate records of your business use of the car, including odometer readings and the dates that you used the car for business purposes.
In the case that you are unsure of whether you fall under these tax benefits, it's always a good idea to consult with a tax professional or the Australian Taxation Office for specific information and guidance.
What is the difference between a secured and unsecured car loan?
The key difference between a secured and unsecured car loan, is that a secured car loan is secured by collateral. This will usually be the vehicle that you are purchasing. An unsecured car loan is not secured by any collateral but based on the borrower’s financial history. Ultimately, the decision on whether you choose a secured or unsecured car loan should be based on your personal financial situation.
