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$1k to $150k
based on $30,000 loan amount for 5 years at 4.99%
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Your estimated repayment
based on $30,000 loan amount for 5 years at 4.99%
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Quick car loan review
For Car Loan (Vehicle < 5 Years)
These are the benefits of this car loan.
- Interest rates ranked in the best 20%
- Lower than average application fees
- No early exit penalty
- Unlimited extra repayments
- Flexible repayment options
- Can apply online
- Suitable for both new or used car
These are the drawbacks of this car loan.
- Service fee charged
- Cannot apply in branch
Car loan overview
For Car Loan (Vehicle < 5 Years)
- Permitted Loan Purposes
- Application method
Interest rate type
$1k - $150k
1 year to 7 years
Is Fully Drawn Advance
Weekly, Fortnightly, Monthly
Age of car
redraw activation fee of $0
Time to funding
Missed Payment Penalty
Early Exit Penalty Fee
Permitted Loan Purposes
Target Market Determination
Visit Defence Bank to view Target Market Determination.
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How to get a chattel mortgage?
Both businesses and individuals may use a chattel mortgage, provided that the car is being used predominantly for business purposes.
To apply for a chattel mortgage, you need to first consider your options and choose a suitable lender that meets your requirements. Once you have selected a lender, you can apply for the loan online by filling out a form. If the lender doesn’t offer an online application process, you can either call them or visit their nearest branch.
After you’ve applied, the lender will ask you to supply documents that confirm your identification, income, job profile, etc. If everything is in order, most lenders will arrange the loan’s settlement, so all you need to do is pick up your car!
Can you get a chattel mortgage with bad credit?
Getting approval for a chattel mortgage with bad credit may be possible, given ‘chattel’ (usually a piece of equipment or car) is put up as security for the loan. That means if you fail to repay the loan, the creditor can recover the loaned amount by repossessing and selling the car or piece of equipment. This differs from unsecured car loans, where the asset is not tied to the loan and cannot be taken if you don’t meet the repayments.
What is proof of residence?
Before giving you a car loan, lenders will ask for proof of residence – documentary evidence that you live where you claim you live. Lenders will typically want some combination of utility bills, bank statements, mortgage documents or driver’s licence. The reason lenders want proof of residence is to verify your identity and credit history.
What is proof of income?
Before giving you a car loan, lenders will ask for proof of income – documentary evidence that you earn as much as you claim you earn. Lenders will typically want some combination of tax returns, pay slips and bank statements. The reason lenders want proof of income is because they want to be sure you have the means to repay the car loan.
Do banks do guarantor car loans?
Yes, some banks will be willing to provide guarantor loans, including Commonwealth Bank, NAB, Westpac and ANZ, though the terms for signing up to a banker-issued guarantor car loan may not necessarily be as good as another lender.
You should keep in mind though that these larger banks, because of their monopoly of the market, tend to have higher interest rates than the smaller lenders.
In comparison, smaller loan companies and credit unions tend to be more competitive in their battle for your business. There are plenty of lenders willing to lend to people with bad credit or no credit history who have willing guarantors.
How do you get a car loan?
There are four different ways you can get a car loan. You can go straight to a lender. You can get a finance broker to organise a car loan for you. You can get ‘dealer finance’ – which is when the car dealer organises a car loan for you. Or you can organise your own car loan through a comparison website, like RateCity.
Whichever method you choose, you will need to provide proof of identification, proof of income and proof of savings. So you may be asked for any combination of passport, driver’s licence, bank statements, payslips, tax returns and utility bills. You might also be asked to provide proof of insurance.
Can I get a discounted student car loan?
Being a student is tough enough, and while you might find the odd student discount on movies and technology, the same can’t be said about car loans, as you can’t really get a discounted student car loan.
Lenders make money on the interest and fees that they charge with loans, and the lowest interest and fees are given to the most reliable credit holders: people with excellent credit history.
As a student, you are unlikely to have enough on your credit report to warrant an excellent history. There are however, ways of getting a lower interest car loan if you can’t get an interest-free loan from the bank of mum and dad. One way of doing this may be through getting a guarantor car loan, which can get you a secured car loan by setting your parents up as guarantors.
Where can I get a student car loan?
Student car loans are not a necessarily a product in and of themselves, but what you may be looking for is a guarantor car loan.
A guarantor car loan has a third-party act as a form of guarantee for your loan application, telling the bank or lender that if you default on your loan, someone will pay the loan repayments.
Going guarantor on a car loan is no new thing, and before internet-based credit scores, guarantor car loan applicants would apply for loans with a guarantor or property owner who could vouch for the person borrowing the loan.
To get a guarantor car loan, you’ll need someone willing to act as a guarantor for your car loan.
Can you refinance a car loan with the same lender?
You may be looking to refinance your car loan to get lower interest rates or reduce the total monthly amount you have to pay. Often, this leads to the question ‘can I refinance a car loan with the same bank?’
While it’s always worth shopping around for a better deal or at least to compare offers from other lenders, you can sometimes refinance to a different loan with the same lender. It may be simpler, as the lender already has your details and knows your repayment history.
Having said that, knowing the terms offered by other lenders may help you negotiate a better deal with your current lender.
What are the disadvantages of a chattel mortgage for a business vehicle?
If you are planning to purchase a vehicle for business use, you may be considering a chattel mortgage as an alternative to a standard car loan.
With a chattel mortgage, the lender registers a security interest on the asset in the Personal Property Securities Register (PPSR). The vehicle belongs to your business, so you can claim depreciation while repaying the loan. A chattel mortgage offers some advantages to small businesses, but you will also need to consider the disadvantages of a chattel mortgage.
The biggest disadvantage is that such a mortgage is not regulated by the National Consumer Credit Protection Act (NCCP Act). So you need to understand the terms and conditions fully before you enter into an agreement for a chattel mortgage.
As your car is offered as security for a chattel mortgage, there is a risk that it could be repossessed if you are unable to make repayments. The higher interest rate charged on chattel mortgages is another disadvantage. Unlike a lease, you have to pay for the maintenance of the vehicle in a chattel mortgage.
How to apply for pre-approval of a car loan from RACV?
If you’re planning to apply for a car loan with RACV, the best way to start is by having a clear picture of your requirements. By getting pre-approval on your car loan, you’ll be able to go shopping for your new car with a definite budget that will help you narrow your search. Once you’ve decided to buy a car with the help of a loan, you may have even identified the type of car you would like to purchase, you can seek pre-approval on a car loan from RACV.
You can apply for pre-approval by filling out a form online and uploading the relevant documentation regarding your identification, income, debt and credit history. Once you submit your application, RACV will review and verify the documents. If you meet their eligibility criteria, you will get pre-approval for the amount they are willing to lend to you. With this pre-approval, you can go car shopping with the confidence of knowing what you can afford.
Can you terminate your chattel mortgage early?
Some lenders might provide you with an option to terminate your chattel mortgage early by repaying the full amount before the term is over. This way, your overall loan term decreases, therefore reducing the interest you need to pay.
It’s important to note that some lenders might charge a fee for you to pay off your chattel mortgage early. So, if you’re planning to terminate your chattel mortgage early, make sure you check if your lender allows you to do this. You should also determine if there are any additional fees or charges that you would need to pay to do this.
How does a chattel mortgage work?
A chattel mortgage is a loan issued to a person or a corporation for movable property. The movable property could include automobiles, yachts or boats, mobile homes, caravans or trailers. The term chattel in chattel mortgage refers to the movable property used as collateral or security for the loan.
In a chattel mortgage, the loan is backed by 'chattel,' which the lender retains ownership of until the full loan has been repaid. Usually, the interest rate charged on such mortgages is lower. Repayments can also be fixed, which means you know exactly how much you’re repaying each month.
The most significant benefit for the lender is that the properties held as insurance are movable and can be sold easily if the borrower defaults.
Can an individual apply for a chattel mortgage?
Lenders offer chattel mortgages as a way to finance vehicles used for business purposes. Companies, as well as individuals, are eligible to apply for and receive chattel mortgages. The essential eligibility requirement is that the vehicle is used for business at least 51 per cent of the time. If you’re a tradesman and require a new utility vehicle to move equipment, you can apply for a chattel mortgage to finance the purchase.
A chattel mortgage for individuals is an option if you’re self-employed and have an Australian Business Number (ABN). You’ll also need to be registered for the Goods and Services Tax (GST) and have a clear credit history. Like all other loan types, you’ll have to prove your capability to service the loan to qualify for a chattel mortgage.
You’ll retain the ownership while the lender holds the vehicle as security for the loan in a similar way as they would a property with a home loan. You repay the borrowed amount in predetermined monthly instalments. Once you repay the entire loan amount, the lender will remove the mortgage.
What are the chattel mortgage tax benefits?
Buying a vehicle with a chattel mortgage can help to reduce your tax burden. The tax benefits you can get from a chattel mortgage include:
- Goods and Services Tax (GST): GST is paid when you buy a new vehicle. You can claim the GST credit for vehicles and other goods or services used for commercial use. The GST paid when you buy the car is claimed as an Input Tax Credit if your business is registered for the GST in your Bank Activity Statement (BAS).
- Interest payments: You can claim the interest paid on your chattel mortgage as a deduction in your annual tax returns.
- Depreciation: The longer you own the vehicle, its value will depreciate, and you can claim this depreciation as a tax deduction.
You should consult an experienced tax professional for more information about chattel mortgage tax benefits.
Can casual employees get car loans from ANZ?
Casual employment is common, and if you are a casual employee, it doesn’t mean that you’re not eligible for a car loan. But you’ll need to prove your repayment capability while applying for an ANZ car loan for casual employees.
Before applying, it’s important to consider the minimum eligibility criteria, which stipulates that a borrower must be an Australian citizen, permanent resident or have a valid visa, is at least 18 years old, and earns an annual income of at least $15,000.
Also, applying for a loan amount lower than what you can afford and working for some months before applying could increase your chance of approval. If possible, consider submitting a letter from your employer that will prove income stability. Lenders are more likely to approve your application if you’re able to demonstrate your ability to save, reducing their risk.
What do I need to apply for a chattel mortgage?
Chattel mortgages are a form of secured car loan for businesses. The lender will set up a mortgage, while you take the car’s ownership. When the mortgage is paid off, you own the car. The borrowed amount is repaid through regular installments over a fixed period of time.
To qualify, you’ll have to meet the following chattel mortgage requirements:
- The car should be used for business purposes at least 51 per cent of the time.
- You must hold a valid Australian Business Number (ABN).
- You must show you can service the loan on time
- Identity proof
- Financial records, such as profit and loss account and balance sheet
- Details of the vehicle you want to buy
- Bank statement for your business
How to get pre-approved for a credit union car loan?
Getting pre-approval for a credit union car loan can make the process and paperwork required to buy a car more streamlined and less stressful. You can apply for pre-approval for a credit union car loan, online or contact your credit union. You’ll be asked to provide relevant documentation regarding your income. After you submit your application, your credit union will review and evaluate it along with the documents you submitted. If you meet the eligibility criteria, your loan will be pre-approved for a specific amount.
With pre-approval for a credit union car loan in hand, you can negotiate your new car’s price with peace of mind you have the funds.
How to get pre-approval for a car loan from Westpac?
You can easily apply for pre-approval on your Westpac car loan over the phone, in the branch or online. A fast way to apply for pre-approval is by applying online as the application process only takes around 10-15 minutes to complete.
While filling out the application, you’ll need to answer specific questions about your financial situation, like your income, assets, debts, and expenses. You’ll also have to provide supporting documentation, especially if you’re not an existing customer.
Once you’ve submitted the application, and meet the eligibility criteria, Westpac will likely take up to 2 days to provide pre-approval. After you get pre-approval, you’ll know the size of the car loan Westpac is willing to offer you. You’ll then have 30 days to find your new car within the pre-approved amount.
What is a chattel mortgage fee?
A chattel mortgage fee is an amount you’ll pay the lender to procure the funds for a chattel mortgage.
You can use a chattel mortgage to finance vehicles used for your business at least 50 per cent of the time. It’s similar to a secured vehicle loan. The lender will give you the funds required to purchase the vehicle whilst you retain the ownership. The finance company then holds a mortgage on the vehicle, using the car as the security, until you repay the loan amount. At the end of the loan term or once you’ve paid it off, the lender will release the mortgage. Alternatively, you can opt to trade-in or refinance the residual value.