What types of car loans are available?
If you’re in the market for a new or second-hand car, there are a number of different loan products available, all with a host of different features.
What’s right for you will depend on your personal circumstances and what you’re looking for.
Here are some of the main factors to consider:
New car and used car loans – Depending on the age of the car you’re looking to purchase, there are loans that will be more suited to either new or used cars.
Secured and unsecured – A secured car loan means the loan is backed by the car itself. If the loan is not secured, you should expect to pay a higher rate of interest.
Fixed interest and variable interest – Loans with a fixed interest will give you more clarity about what your repayments will look like.
Chattel mortgage – Chattel mortgages are for business owners wanting to purchase a vehicle for business use. They may have other features such as a balloon payment which helps reduce ongoing costs but means a higher final repayment.