Forum announcement - 2 March 2018 - it has now been a month since AusRotary relaunched and things are going great. In that time, we have had over 800 registered users access the site (on top of tens of thousands of guests), which just goes to demonstrate that this community still means a lot to so many people even if they don't post here regularly. The positive reception and feedback you have given regarding the improved layout and new functionality has been much appreciated. With your help, we have further fine tuned a few things and improved website speed & performance. But we're not done yet, with plans to continue introducing new features to make this place better and better. An example is our new post like system (link) which we encourage you all to use generally (especially if you are a forum lurker!). There are more ideas in the pipeline too, so stay tuned!

In the meantime, the best way to keep this community going is by posting new content and sharing photos/videos/articles/events you come across. If you were going to put it on social media, post it here too - many of our members don't use popular social media platforms whatsoever. Sharing content directly to and from AusRotary is now easy, so don't be shy.

Thanks again for all your loyal support and the great build logs, tech advice and knowledge you contribute.

How to get vehicle finance?

Moderator: motorculture

Post Reply
User avatar
Rebuild Time
Posts: 1153
Joined: Sun Mar 22, 2009 4:22 pm
Location: Sydney, Australia
Has liked: 0
Been liked: 0

How to get vehicle finance?

#1 Post by motorculture » Wed Jul 29, 2015 12:14 pm

How to get vehicle finance? Vic Willey of" onclick=";return false; shares some thoughts on this subject.


The problem is the very large sum of money between you and the car and you think it's an impossible target.

Think again - but you need to know what's available, what's required and more importantly, what it's going to cost.

Gauging the size of the car loan industry can be reflected by lenders such as St George and Esanda that each write around $220 million of car loans a month. So there's money available. These are the steps to get your hands on some.



The first step is your ability to repay. Your credit history is critical to successfully buying any car on finance.

If you have a bad credit history - a cupboard full of irregular payments, none payments and even a repossession - you have a rocky time ahead getting finance and even then, you'll go to the top of the interest rate scale.

But it's not the end of the world - "If you pay on time for 12 months you can re-establish your credit rating and get lower interest rates," says Vic. "History is that - history. You can turn your credit rating around and that will make life easier and cheaper for the future."



Financing your car - as distinct from paying with cash - is generally the quickest, easiest and most expensive way to get wheels. Recognise that and you're on your way.

One of the biggest attractions of financing through a dealer is that the money business is done virtually on the spot, in the dealership office. That makes it quick and easy, but not necessarily the best option for you and your dollar.



Fixed rate loan agreements are the most common finance arranged for vehicles.

Vic says the recent National Consumer Credit Protection Regulations - which licences financiers and monitors car dealers - had led to banks tightening their criteria on personal loans and that placed more business with the specialist car loan finance companies.

"If the customer has no credit rating, or has a poor rating and has a loan default, we can organise for an existing loan to be paid out," Vic says.

"A loan can be tailored for borrowers on low income, or low disposable incomes. For example, the loan period can be extended so monthly repayments are smaller. That also improves the chances for the loan being approved."

A high credit rating can mean lower interest rates and therefore lower repayments. According to data from loan comparison groups such as Cannex, a low-risk, high credit rated borrower could, for example, have an interest rate of 10 per cent for a secured loan.

But if the loan is unsecured - that is, no collateral is required on the car - then the same person could pay 14 per cent. Commercial rates are lower. A low risk loan could be charged at 7.8 per cent as a base rate and yet as the risk increases, the interest rate may grow to 16 per cent.


Financiers use a point-score system to assist in determining repayment capacity. This can be used in conjunction with the Henderson Poverty Index that is a sliding scale taking into account marital status, income, disposable income, length of employment, number of children and so on. Buyers should be aware that used car loan rates are more expensive than new car rates.

"That's based on the car's age," Vic says. "There are other variables as well, mostly affecting insurance, such as the driver's age and driving record, type of car and so on."

Generally, a used car buyer can expect to pay 2-4 per cent more in interest rates than a new-car buyer.

With over 25 years commercial lending experience, SV Solutions Pty Ltd will find the most appropriate solution for your business and personal finance needs. For more info, visit:" onclick=";return false; or call Vic on 0423 409 483

Automotive social media or call us on 02 9418 9008

For some daily car culture check out

Post Reply