Car Loans Canberra

Canberra Mortgage Brokers not only arrange finance for home loans we also source competitive car loans for new cars, used cars, cars from dealers and cars from private sellers. If it’s time to update your car, we can help you every step of the way.

We work with many specialist car lenders ‐ and can recommend a range of flexible loan options for your next car, motorcycle, boat, van or equipment.

Canberra Mortgage Brokers will negotiate on your behalf and help you address these important issues:

• What contract terms will be right for you?
• What form of deposit should you use – cash or trade-in?
• Are you eligible for ‘no deposit’ finance?
• Should you apply a ‘balloon value’ to the car so that repayments fit within your budget?

How do Car Dealers Offer 0% Finance?

Car dealers do whatever they can to lure you into their showroom. A 0% offer is often all it takes. No doubt you have heard the saying ‘If it sounds too good to be true, then it probably is’

Although you may not realise it, you will still be paying interest. But instead of spreading the money over a series of repayments, you’re paying it on other aspects of the sale. To compensate for the ‘lost interest’, car dealers inflate prices in other areas including:

• Higher upfront price: Your dealer is likely to be a lot less flexible on the price of the vehicle or trade‐in offer.
• Higher servicing costs: You may be contractually obliged to service your vehicle with that dealer for many months or years. And these service costs are often overpriced.
• Up‐selling additional services: You may be pressured into add‐ons like extended warranties to help dealers beef up their profits.

The key to getting a good deal on your next car is ‘homework’. Talk to Canberra Mortgage Brokers. We’ll help you make an informed choice and assess whether the 0% offer is right for you.

Business Equipment Finance

Canberra Mortgage Brokers has a range of options for business looking to secure equipment finance. By selecting the right finance package from a wide range of major equipment lenders we can save you interest and structure your Chattel Mortgage, HP or Lease to maximise your tax deductions.

How does a Chattel Mortgage work?

Under a Chattel Mortgage the financier advances funds to the customer to purchase a vehicle, and the customer takes ownership of the vehicle (chattel) at the time of purchase. The financier then takes a "mortgage" over the vehicle as security for the loan. Once the contract is completed, the security interest is removed giving the customer clear title to the vehicle.

Benefits of a Chattel Mortgage

• Flexible contract terms ranging from 12 to 60 months (one to five years)
• A residual value (balloon) can be applied to the contract enabling the monthly repayments to be tailored to a budget
• Fixed interest rates
• Monthly repayments are fixed
• Costs are known in advance
• Deposit (either cash or trade-in) may be used
• A tax deduction is available when the vehicle is used for business purposes
• A customer who is registered for GST can claim the GST contained in the vehicle price as an input credit on their next Business Activity Statement (BAS)
• The finance is secured against the vehicle, allowing lower interest rates

• Under a Chattel Mortgage the customer can claim the interest charges on the contract and depreciation as a tax deduction.

Leasing

The business obtains a tax deduction for the lease rental payments, but the finance company or bank providing the lease finance retains ownership of the item and is able to claim depreciation. At the end of the lease period, the business has the first opportunity to buy the item at its residual value (its written down value after depreciation). If it does not, and the item fetches less than the residual value on the open market, the business is liable for the shortfall.

Commercial HP (Hire Purchase)

Commercial Hire Purchase agreements are typically used by individual business customers who wish to place a deposit into their finance contract, or nominate the value of the balloon (final instalment) on their contract. This type of contract offers maximum flexibility to set the monthly repayment amount to suit your individual circumstances.

Under both a Chattel Mortgage and Commercial Hire Purchase agreement, the Goods and Services Tax (GST) is contained in the purchase price of the vehicle, but does not apply to the monthly repayment or balloon (final instalment) on the contract.

Normally, those individual business customers who are registered for GST purposes and enter into a Commercial Hire Purchase agreement will apply Input Tax Credits (ITCs) to claim back some or all of the GST contained in the price of the motor vehicle. A Chattel Mortgage is well suited to those individual business customers who account on a cash basis. Individual business customers accounting on a cash basis can claim back the GST as soon as they lodge their next Business Activity Statement (BAS).
 

Business Loans

Are you looking to grow and expand your business but not sure which financing option is right for you? 

Maybe you are looking to buy a business or franchise, or you need to fund longer term working capital requirements such as buying, building or upgrading a premises. We can also assist you with purchasing vacant commercial or industrial land or consolidate business debts. 

A Business Line of Credit gives you the flexibility to borrow however much you need, when you need, up to an approved limit.  As long as you keep the loan balance below the credit limit, you decide how often and how much to pay off. A Business Line of Credit is suitable for a wide range of business purposes such as financing investments, short-term working capital, seasonal business requirements and for large operational business expenses such as bulk ordering.

You may prefer a set repayment loan which are available in both fixed and variable rate options. Some lenders even offer the option of reducing your interest repayments with a 100% offset facility (variable only) by linking your business transaction account to the loan.

Canberra Mortgage Brokers are here to help your business reach its full potential.  We can help you understand the wide variety of loan types available and do all the legwork in sourcing the right business loan for your needs.