LOW DOC CAR LOAN
Rates from 9.30% (fixed for the term of the loan)
Sample Monthly Payments:
$30,000 Loan over 48 Months, 45% Balloon, Chattel Mortgage: 48 payments of $553 plus final payment of $13,500
$30,000 Loan over 48 Months, NO Balloon, Chattel Mortgage: 48 payments of $784
A "no nonsense" loan solution for Applicants wishing to purchase a Motor Vehicle (which is to used be predominantly
for bona-fide BUSINESS PURPOSES) through a Licenced Motor Dealer.
SIMPLE GUIDELINES
Passenger cars or commercial vehicles up to three (3) tonnes acceptable.
Maximum loan amount $70,000 (including GST and all other financed costs).
DEPOSIT REQUIREMENTS: If Applicant/s own property and can demonstrate that they have a minimum $100,000 equity
in that property, then NO Deposit is required. Applicant/s needs to be a registered Owner (or Owner with Spouse) of
that property (if Applicant is a Company, then all Directors need to have property equity). Note that property owned
solely in the name of the Applicants Spouse is not acceptable. If unable to satisfy this condition, a minimum 30%
deposit is required (by way of "Trade In" is acceptable).
New and used vehicles up to four (4) years old supplied via a licensed dealership ONLY (no private sales).
ABN held for a minimum of 24 months by applicant (usually in the same Industry).
Satisfactory Credit Report on all Applicants and Guarantors (generally, "clear credit" is required).
Total exposure to Lender cannot exceed $150,000.
FINANCING OPTIONS
You should talk to your Accountant regarding the type of Finance that would best suit your circumstances. We have provided general Guidelines below,
but these are not to be seen as a replacement for Professional Advice. Options offered are:
Features available for all Financing Options
Loan term of 12 – 60 months available.
The GST-inclusive amount is financed.
Fees and stamp duty may be included in the loan amount if desired.
Deposits and /or trade-ins can be used to reduce the loan amount.
Loan can be fully amortised (nil residual balloon) or a residual balloon payment can be factored in to reduce the
monthly payments (see "balloons" below).
Payments are fixed for the loan term.
The repayments and residual balloon payments do not include a GST component.
Features specific to Commercial Hire Purchase (CHP)
Most common vehicle and equipment finance product.
Title passes to the client once all payments are made.
Dealer invoices the Lender.
For asset depreciation and interest deductibility purposes, the asset is effectively “owned” by the client even though
title does not pass until loan maturity.
Clients on an accrual accounting basis for GST can usually claim the full GST component back at commencement of
the loan.
Clients on a cash accounting basis for GST must claim the GST component back proportionately across the loan term.
Therefore, clients on a cash accounting basis for GST are likely to be unsuited for a CHP.
Features specific to a Chattel Mortgage
Title vested in name of client from day 1.
Dealer invoices the client for the goods.
For asset depreciation and interest deductibility purposes, the asset is “owned” by the client.
Clients on either an accrual or a cash accounting basis for GST can claim the full GST component when lodging next BAS.
Therefore a Chattel Mortgage may be suitable for clients on a cash accounting basis for GST.
The Chattel Mortgage may be registered with ASIC and/or the Land Title Office under a Bill of Sale.
RESIDUALS/BALLOONS GUIDELINES
12 to 36 month loan term - maximum 50% residual/balloon
37 to 48 month loan term - maximum 45% residual/balloon
49 to 60 month loan term - maximum 35% residual/balloon
CAUTION:The "balloon" needs to be paid to the Lender by the Client at the expiration of the Loan Term (the "final payment").
A higher balloon will result in reduced monthly payments, but MAY result in a large final payment at the end of the Loan Term.
Please discuss with your Accountant if you are unsure of the implications of setting a large Balloon.
DOCUMENTS/INFORMATION NEEDED TO APPLY
Finance Type (see above).
Indication of how much you want to pay each month. This is NOT used to inflate the interest rate. We use this
to calculate the term of the Loan and the "balloon" payment to match your preferred monthly payment. Alternatively,
tell us your preferred loan term and balloon and we will quote accordingly.
Tax Invoice from the Dealer (we will provide you with the exact format).
Proof of any Deposit paid (if applicable).
Insurance Cover Note showing Premium (NOTE: you have the option of financing the first years Insurance premium).
Lender to be noted as Lessor/Owner as appropriate (we will provide details).
Copy of latest Rates Notice/s on property/s Applicant/s own plus latest Home Loan Statement/s. If property is
unencumbered, a copy of the Certificate of Title is required showing no registered mortgages.
HOW DO I APPLY
Simply call us on 1300 736 976 or use our FREE CALL button
(works with Land Lines AND Mobiles) at the top of the page and we will provide you with a Quote over the phone. Alternatively, lodge
an Enquiry using our ENQUIRY FORM (see top of page) and we will call you back at the time nominated by you.
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