You are given two options. The first one would be getting a car using car finance or perhaps leasing it.
Difference between Leasing and Buying Car Finance
In the past, it was very challenging to get your hands on a brand new car without it being a company car or perhaps forking out the equivalent of a house deposit. Now, with a wider range of car finance options than before, it is now a possible option for almost every driver.
If it is your first time to use car finance to own a brand new car, car financing may be pretty complex. Leasing car finance and car finance for buying the car right away are actually the two main types of car financing.
Before you could choose the right car finance product you first have to choose whether or not you desire to lease or buy the car using car finance. Leasing is now increasingly common in Australia nowadays. In the past, it has never been a popular option. Leasing a car by using a car finance demands you to pay during your first time to make use of the car. It's either you find another lease or surrender the car as soon as the lease term already ends. Often, however, you have the choice of getting the car - for which you could use car finance.
Car leasing offers you several benefits instead of when you buy it outright. When you are not financially capable of getting a standard car finance, leasing provides you with another so you will have the capacity to have that dream car without ending up with huge debts.
The best car finance for you would also depend on your personal situation as well as the frequency to which you wish to change your car.
Different Types of Car Financing
There are several options once you decide to choose car finance. The standard consumer loan car finance option is the most popular type of car financing in Australia. At the start your loan period will definitely be determined. Your interest rate will be set accordingly, based on your financial risk and as well as current market situations. This is just how this type of car finance usually works. You can repay within one to five years in this type of car finance. Generally, loans are set at fixed interest rates which facilitates ease in budgeting. If you prefer a car finance loan that is secured against the car itself, you can opt for this type.
Personal lease will also be another type of car finance. You don't have to cover the entire cost of the car by using this type of car finance. Rather, you lease the car on car finance for some time - usually between one and five years. The monthly obligations of personal lease car finance could be compared to that of whenever you rent a house.
Lastly, the widely used car financing type is the hire purchase car finance. If you need a flexible version of the personal lease car financing, you can opt for hire purchase. With this car financing option, you just need to lease the car through a car finance. After that you can go on paying what is known as "balloon payment" after the agreed car finance lease period. Small businesses generally find this advantageous since there's no need to pay for the whole car up front. This car finance helps businesses arrange a payment deal that fits with their income and budget.