Lending » Vehicle & Equipment Finance Options » Consumer Car Loan

Consumer Car Loan

A Consumer Car Loan is typically used by individuals to purchase a car where it is predominately for personal or private use and it does not form part of any salary packaging arrangement.

With car loans, the car is used as the security against the funds borrowed to acquire the car. As the financier holds the car as security, their risk of loss is reduced and as such, a much more competitive interest rate can be offered compared to standard personal loans. The benefits of a Consumer Loan are:

  • Repayments are fixed for the period of the loan.
  • In general, the interest rate on a personal car loan is significantly less than standard personal loans.
  • You can finance the total purchase price of the car.
  • Compared to adding the vehicle to an existing mortgage, a consumer car loan ensures you make regular payments over a period of 12-60 months, instead of spreading your vehicle repayments over the life of a home loan (up to 30 years)