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Many options are available if you are looking for car finance. You can shop around to get a good idea of the market. Read this article to learn how car finance actually works.


Are you looking for a car loan in Brisbane? Finding a car loan doesn't come in handy. You need to check out various options before going for a car loan.

Car finance allows you to buy a car by borrowing money. You are needed to pay interest to the financial institution from which you borrowed the money.

A car loan can be an apt option if you don't have ample savings to purchase a car upfront, but you can manage to make weekly or monthly instalments to repay. You will need to pay back the loan within a certain amount of time, which is considered the term of the loan. The term can be between 3-5 years.

The interest rate tied to your car finance around the sunshine coast region generally depends on various attributes such as job, income, credit score, history of repaying loans and the kind of car you own.

Components of car finance

Loan period

It is referred to as the length of a car loan. The longer the loan term, the lower the weekly and monthly instalments. However, the longer the loan period, the higher interest you will be required to pay.

Interest rates

Car financing firms enable fixed car loans, which means the interest rate remains intact for the term of the loan. You should shop around to ensure you get the best deal for your needs.


Most car loan lenders allow borrowers to pick to repay their car loan finance weekly or monthly. In most cases, the lenders will also permit additional payments to be made that can help you repay your car loan sooner.

Early paying off a loan will lead you to pay an early termination fee.

Late payment fees

If you skip a repayment, you will be charged a delayed payment fee as a form of penalty. Manage your repayments via direct debit to avoid late payment fees.

Residual payments

It is considered a balloon payment that is being made at the end of the car loan period.

Types of car finance

Car loan

A car loan is a certain amount of money borrowed by customers through a finance company to buy a car.

Unsecured car loans

It is considered a personal loan; an unsecured car loan is when a financing firm lends you money to buy a car for personal use. All in all, the borrower becomes the car's owner from the beginning.

Chattel mortgage

The car finance company lends you money to purchase a vehicle that will initially be utilized for business reasons. The borrower will still repay the loan via set repayment methods over the life of the car loan.

When you own the vehicle outright, the car finance company places a mortgage over the vehicle as security for the loan.

Car lease

A car lease efficiently works as a long-term rental. It specifically aims at people mainly utilizing their vehicles for business purposes. When the lease terminates, you will be offered the option to buy the cars after paying a lump sum to reinitiate another lease.

Hire purchase

When a lender buys a car on your behalf, and then you buy it back, it is called a commercial hire agreement. However, you don't own the car.

The ownership transfers to you when you repay the total price and interest in full. Hire purchase agreements are normally one to five years in length.


If you are suffering from bad credit for car finance, purchasing car loans is an excellent alternative. Various car financing institutions finance cars in Brisbane at an affordable interest rate.

Moreover, you can explore other shores such as car lease, hire purchase or chattel mortgage if you are economically unsound.

The companies who offer car finance need to do some checks like viewing your past loan history, credit score and assets. If you pass the list of car finance criteria, then you are eligible to buy a car on loan.

Source URL : https://crossyscars.com.au/finance/





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