About Car Loan

Drive away with the best deal!

Looking for car financing to get your hands on a new or used car? You’re in luck! A car loan is a personal loan designed specifically for this purpose, allowing you to hit the road in style.

Calculating Car Financing – Secure car financing on your terms

Car loans typically span a fixed term, offering you flexibility with repayment periods ranging from one to seven years. To make the most of your car loan, it pays to use a calculating car finance tool along with the help of our car finance brokers to find you the best deal. By doing so, you can save a bundle on interest and fees, ensuring a smooth ride ahead.

Secured Car Financing – Drive with confidence

Most car loans are secured, using the car you purchase as collateral for the loan. While this provides added security for lenders, it also means you must keep up with timely repayments to maintain your auto car loan. Failure to do so could lead to repossession and sale of your beloved car.

Fixed or Variable Interest – Choose your path

With a fixed rate, both the interest rate and your monthly repayments remain constant throughout the loan term. On the other hand, variable interest rates can fluctuate with changes in interest rates, affecting your automobile financing. While this means your repayments may increase or decrease, variable rate car loans often allow extra repayments without early exit fees – perfect if you plan to pay off your car loan ahead of schedule.

 Calculating interest on a car loan: Balloon payments – Weighing the Pros and Cons

Some car loans tempt you with a ‘balloon payment’ or residual payment option, affecting your car financing repayment structure. This means you pay a portion of the loan through regular repayments and a lump sum (the balloon payment) at the loan’s end. While this lowers your monthly payments, be wary of the total cost, as calculating interest on a car loan with a balloon payment can be more expensive in the long run. Plan carefully to ensure you can meet the balloon payment when it’s due and avoid the need for another car loan.

Ready to hit the road with auto financing?

Now that you’re equipped with car financing knowledge, it’s time to buckle up and embark on your car-buying journey with Finconnex.

Check out our car finance deals, including used car finance and refinance car loans. Remember to use our auto financing calculator to compare offers, understand the terms, and find the perfect automobile financing that puts you in the driver’s seat of your dreams.

Get ready to drive away with the best deal in town!

Apply for car loan

Frequently Asked Questions

Required Documents Checklist

Personal identification

  • You’ll need to gather 100 points of ID.
  • A current passport or birth certificate is worth 70 points.
  • A driver’s license equals 40 points. (If your documents are in your maiden name, include your marriage certificate.)
  • To reach 100 points, consider other documents such as a Medicare card, credit card, ATM/debit card, council rates notice, pensioner concession card, health care card, or tertiary student ID card.

Income details

  • Provide your two most recent payslips from your current employer. These should ideally display the company name, payslip number, and year-to-date income.
  • Include the latest Group Certificate from your employer.

If you’re self-employed

  • Include the last two years’ personal and business tax returns along with ATO assessments.
  • Add any other income details.

You may also need

  • Rental income statements or bank records showing rental income for investment properties.
  • Proof of share dividends or earned interest.
  • A Centrelink letter confirming family tax benefits.
  • A Centrelink letter confirming a permanent government pension.
  • A private pension group certificate or statement.
  • Proof of any other regular, ongoing income.

 

Additional documents for mortgage refinancing

Documentation for Existing Home Loan

  • Include details of your existing home loan: the loan commencement date, loan period, and any early exit financial penalties.
  • Provide statements covering the last six months for all existing home loans and personal loans.

For properties offered as security

  • Include the most recent council rates notice and building insurance policy for the property or properties being used as security.

Credit card information

  • If you have credit card debt, include statements from the past six months.
  • If your credit card balance is zero, include the most recent statement.

 

Additional documents if you already own a home

  • Provide statements for the last six months showcasing your existing home loans or personal loans.
  • Include your most recent credit card statement.
  • Attach a copy of the contract of sale for the property you are purchasing.
  • Showcase your savings and investment history with statements covering the last six months. This can encompass share certificates, savings account statements, term deposit statements, and more.
  • If external funds are involved in the purchase, provide evidence confirming the location of these funds.
  • In the case of funds being gifted to you from an external source, not yet deposited in your bank account, a Statutory Declaration from the giver is necessary.

 

Additional documents for first home buyers

  • If you possess a First Home Saver Account, provide its statement.
  • Provide statements for the past six months to demonstrate your savings and investment history, which may include share certificates, term deposit statements, and more.
  • If external funds are contributing to the purchase, provide evidence detailing the location of these funds.
  • In the case of funds being gifted to you from an external source not yet reflected in your bank account, a Statutory Declaration from the donor is required.
  • Include your most recent credit card statement.
  • Attach a copy of the contract of sale for the property in question.

 

Additional documents for investors

If you have an existing investment property(ies), ensure you provide these essential documents:

  • Evidence of income, including rental statements.
  • Include a copy of the tenancy lease for each property.
  • Provide a council rates’ notice for each property.
  • Copy of the contract of sale for the property you are purchasing.
  • Provide a letter from a property manager estimating the potential rent for the new property.
  • Copy of the contract of sale for the property being purchased.

Additional documents for borrowers seeking a construction loan

  • A copy of a valid builder’s fixed price tender, including all specifications.
  • A copy of council approved plans.

Applying for a car loan can be a quick and easy process, however to ensure it is hassle free, you must provide the following to comply with responsible lending criteria:

  • Personal information and identification forms
  • Proof of income
  • Proof of assets and liabilities
  • Information about the car
  • Proof of a car insurance policy
  • Statements for the last six months for any existing home loans or personal loans.
  • Your most recent credit card statement.
  • Copy of the contract of sale for the property you’re buying.
  • Statements for the last six months to show your savings and investment history. (This could include share certificates, savings account statements, term deposit statements, etc.)
  • If other funds are being used for the purchase, evidence showing where the funds are held.
  • If other funds are being given to you, which are not already in your bank account, you will need a Statutory Declaration from the person giving you the money.
  • Statement for your First Home Saver Account, if you have one.
  • Statements for the last six months to show your savings and investment history. This could include share certificates, term deposit statements, etc.
  • If other funds are being used for the purchase, evidence showing where the funds are held.
  • If other funds are being given to you, which are not already in your bank account, you will need a Statutory Declaration from the person giving you the money.
  • Your most recent credit card statement.
  • Copy of the contract of sale for the property being purchased.

If you already have investment property(ies):

  • Evidence of income such as rental statements.
  • A copy of the tenancy lease.
  • A council rates notice.
  • Copy of the contract of sale for the property being purchased.
  • A letter from a property manager indicating likely rent for the new property.
  • Copy of the contract of sale for the property being purchased.
  • A copy of a valid builder’s fixed price tender, including all specifications.
  • A copy of council approved plans.

Absolutely. If you possess the necessary funds and wish to pay off the loan ahead of schedule, an early loan repayment is possible, however it is always advisable to check the terms and conditions of your loan to understand if there are penalty fees.

Certainly. The option for refinancing is available if you intend to replace your existing loan with another, aiming for a more favourable interest rate or utilising the equity in your current property for a specific financial need. There are many benefits including paying less interest over the life of the loan and reducing your loan term.  There may be added benefits of accessing new features such as an offset account.

Whenever you require financial support, feel free to get in touch with your mortgage broker to discuss the available options.

Finconnex’s head office is situated at Suite 57, Level 8, 301 Castlereagh Street Sydney. We have team members located Australia wide allowing us to provide assistance to clients seeking financial support anywhere in Australia. Appointments can be in person or online.

Get a Quote

To get a quote, please provide your details below and one of our team members will contact you


    4.9js_loader