Consumer car loan
Buying privately?
A secured loan over the vehicle, regulated as consumer credit. Straightforward, fixed repayments, with the vehicle as security.
ASSET FINANCE
Finance for vehicles and equipment
Cars, trucks, machinery and business equipment — for private buyers and for businesses, with different structures suiting each.
IN SHORT
Asset finance is secured against the thing you are buying
Because the vehicle or equipment itself is the security, asset finance is usually priced better than an unsecured personal loan, and terms are shorter than a mortgage — commonly three to seven years, matched to the useful life of the asset.
The right structure depends on who is buying and why. A business purchasing a work vehicle has options a private buyer does not, and those options carry tax treatment that a private purchase does not attract.
Rates also move with the age and type of the asset. A near-new passenger vehicle is priced quite differently from ten-year-old specialised machinery.
WHY IT HELPS
The common structures
Chattel mortgage
Buying through a business?
The business owns the asset from the outset and the lender takes a mortgage over it. Commonly used where the asset is for business use.
Lease and novated lease
Want it handled through salary?
A novated lease is arranged between you, your employer and the financier, with payments made from salary. Whether it suits you depends on your circumstances.
HOW IT WORKS
What determines the rate
Asset finance pricing is more variable than most people expect. Two buyers with similar credit profiles can receive quite different offers depending on what they are buying and how.
- The age and type of the asset, and its expected resale value
- Whether the purchase is private or through a business
- Whether you are buying from a dealer or privately
- The loan term and whether a balloon or residual payment is included
- Your credit history and, for businesses, trading history
IS IT RIGHT FOR YOU
Getting asset finance right
This tends to suit you if
- The asset holds value reasonably — which supports both the security and the pricing.
- The term matches the asset's life — so you are not still paying for something you have replaced.
- You are buying through a business — which opens up structures with different treatment.
- You compare beyond the dealer — dealer finance is convenient, not automatically competitive.
Worth weighing up
- Balloon payments defer cost — lower repayments now mean a substantial sum owing at the end.
- Vehicles depreciate quickly — you can owe more than the asset is worth for part of the term.
- Private sales have extra checks — lenders verify title and any existing security interests.
- Tax treatment is not our advice — your accountant should confirm it before you structure around it.
How working with us actually goes
Step 1
We start with a conversation, not an application
Step 2
We work out what you can borrow and what it costs
Step 3
We prepare the application and deal with the lender
Step 4
We stay across the loan long after settlement
COMMON QUESTIONS
Questions we get asked about this
Is dealer finance a good deal?
Sometimes, particularly where a manufacturer is running a subsidised campaign. Often it is simply the most convenient option rather than the most competitive one.
It costs nothing to compare, and knowing an alternative offer strengthens your position at the dealership.
What is a balloon or residual payment?
It is a lump sum left owing at the end of the term. Including one lowers your monthly repayments, because you are repaying less of the principal along the way.
The trade-off is that you must pay, refinance or sell to cover it at the end, and more interest is paid overall.
Can I finance a car bought privately?
Yes, though lenders apply extra checks — verifying the seller's title and confirming there is no existing security interest registered against the vehicle.
It usually takes slightly longer than a dealer purchase for that reason.
What is the difference between a chattel mortgage and a lease?
Under a chattel mortgage the business owns the asset from the start and the lender registers security over it. Under a lease the financier retains ownership and the business pays for use of it.
The distinction affects accounting and tax treatment, which is a question for your accountant.
Can I finance equipment as well as vehicles?
Yes — machinery, plant, trailers, medical and dental equipment, fit-outs and technology are all commonly financed.
Pricing and available terms vary with how specialised the asset is and how readily it could be resold.
RELATED
Where people usually go next
Important information
We are not tax agents. Any reference to tax treatment of business assets, depreciation or GST is general information only — confirm your position with your accountant.
The information on this page is general in nature. It has been prepared without taking your objectives, financial situation or needs into account, so it is not personal advice and you should consider whether it is appropriate for you before acting on it.
Any rates, figures or examples shown are indicative only. Lending is subject to approval, and lender eligibility criteria, terms, conditions, fees and charges apply. Talk to us about what your own circumstances allow.