Auto loans can also be said to be a kind of personal loans, the purpose of which is to buy a new or used car.
Under normal circumstances, the term of an auto loan is from 12 months to 7 years, and the minimum loan amount is$7,500. Since most cars do not have the particularity of value preservation, the repayment method is only principal and interest repayment, not interest-only repayment. However, customers can choose to pay in full in installments or pay in full the balance.
The interest generated by the car loan is tax-deductible in some cases. The car accepts the dual-use practice of public and private use, that is, part of the purpose of the car itself can be used for work purposes, and this part of the income generated can be deducted from personal income tax.
Auto loan applicant conditions:
Under normal circumstances, only Citizen, PR, and specific work visas and temporary visas (such as 457, 188 visas) can apply for car loans.
Generally speaking, auto loans will not be pre-approved like home loans. The overall procedures for car loans are very fast, and they can be approved as soon as one working day.
Loan conditions
1. The borrower has a stable occupation and repayment ability, has good credit, and can provide credit and pledge of recognized assets.
2. If PAYG people want to borrow to buy a car, they need to provide nearly 3 pay slips, the dealer's TaxInvoice, and a valid driving license. If they have a house, they need to provide a Council Rate.
3. Self-employed persons (ABN and GST registration > 24 months) only need to provide a valid driving license &, Medicare Card, and Tax Invoice from the dealer.
Loan interest rate
Car loans are generally fixed interest rates. The interest rates of private car loans vary greatly according to the conditions of different people and different banking institutions. The interest rate will be 5.5%-10%+
Many dealers sometimes offer ultra-low loan interest rates or even zero interest rates to attract consumption
In fact, the wool is still on the sheep. The premise of getting a low interest rate is that the price of the car is not negotiable (such as the 0 interest rate of the car dealer to buy a car, you have to buy a car at the market standard price). The customer's credit is better. Let's think about it. Do you want a low interest rate, no discount on the car price, or at the normal interest rate, but cut the price a little bit more. In fact, you pay the same in the end when you count it, it's just a numbers game.
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