Car Loans for Consumers

A consumer loan is what most people think of when they think about car finance. It is, quite simply, a loan between the lender and the purchasor, with regular repayment structures. Ownership of the vehicle is in the purchasors name, and the loan is secured against the vehicle. At the end of the finance term, the vehicle is yours to enjoy or deal with as you please. A consumer loan can be paid out at any time, and as ownership rests in you, the vehicle can also be sold by you at any time during the loan.

Info about a consumer loan

With a consumer loan, you own the vehicle from the start of the agreement. Funds are credited directly to the sellers bank account, and this product is available for private sale vehicles in addition to purchases made from a dealership. Repayments occur at fixed intervals, and usually are direct debited from your bank account on a pre-determined date. You have the choice of repaying weekly, fortnightly or monthly. Additionally, a consumer loan is a common option in refinancing an existing loan from a different lender. In this case, the new loan will pay out any outstanding amount on your existing loan.

Who this option is best for

Consumer loans allow individuals to access finance to purchase both new and used vehicles, and can defer payment of the whole amount to the future. Tax benefits and cash management are reasons why many individuals who have sufficient surplus cash to fund a purchase still opt for a consumer loan.

Advantages of a Consumer loan

• Up to and beyond 100% of the purchase price (and even more) can be financed.
• Regular structured repayments on a pre-determined date
• Ownership in the vehicle passes to you from the start of the agreement
• Ability to tailor the length of the finance term to suit you.

Related Options.

A chattel mortgage operates in a virtually identical way. A chattel mortgage is available to customers who will use the vehicle in a business capacity for at least 50% of the vehicles use. Click here to find out more.