Finance Products
Consumer Loan
A Consumer Loan (also known as a car loan or a secured car loan) is a personal finance product where the financier lends the customer funds for the purchase of a vehicle. The loan is secured against the vehicle.
How does a Consumer Loan work?
A Consumer Loan involves two main parties:
- A financier provides the funding necessary for a customer to acquire a vehicle
- The customer using the funding provided by the financier takes immediate ownership of the vehicle when it is acquired
- The financier takes an interest in the vehicle as security for the loan
On completion of the contract, the financier's interest is removed giving the customer clear title of the vehicle.
Benefits of a Consumer Loan
- Contract terms that are flexible in length, range from 12 to 60 months
- Fixed interest rate and monthly repayments
- Ability to use a deposit such as cash or vehicle trade in at time of purchase
- The finance (loan) is secured against the vehicle itself
- The use of a residual (balloon) value that can assist in tailoring repayments to a budget
There may also be taxation benefits to applicable customers:
- When the vehicle is used for business purposes a tax deduction may be available
Who does a Consumer Loan suit?
Consumers loans are suitable for customers that wish to purchase a vehicle for individual use that do not use the vehicle for significant business use or have the option of a novated lease (salary packaging).
Tax implications of a Consumer Loan
- Since a consumer loan is a personal finance product normal individual taxation implications apply
- Tax deduction for depreciation and running costs may be claimed according to the percentage of business use on a pro rata basis
Want more information? Simply click here to book a call, phone us on 1300 885 074 or email info@aspirebenefits.com.au.