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Vehicle Loan

Vehicle loans are short-term finance and a common type of personal loan. Personal loans as a category cover a broad range of loans based on the objective of the funds and a vehicle loan is a similar kind but for the purchase of a vehicle. The vehicle can be a car, UTE, 4WD, Motorbike or other road vehicles. The vehicle loans are generally up to 5yr term and there are very few lenders who promote loans above 5yrs term.

How Are Rates Determined

Till the recent past, the interest rates on a vehicle loan were based on a declared loan percent by the respective lender.The rate in the early days was determined based on New/used vehicle, type of vehicle etc.Recently there has been a change in the industry where the Interest rates are determined based on the credit score. Higher the Credit score; lesser the interest rate and vice versa.

Vehicle Loan Process

The following process guidelines are irrespective of the vehicle type and subject to lender process changes.

1

Have your loan pre-approval in place

Contact our team to get a pre-approval on a desired budget of purchase.

2

Provide documentation to your broker

We will advise on the documents required to submit for a quote or approval.At this stage, we can only indicate a rate but not the actual approved rate.

3

Application signoff

On receiving the documents, all required aspects with regards to servicing or missing document will be discussed and the team will forward an application for sign off.

4

Submission of Documents

The signed application form along with documents will be submitted to the lender to procure approval and a pre-approval letter will be issued.

5

Identifying the vehicle

Visit dealers/ used car showroom to identify your Dream vehicle.

6

Finalising the vehicle

On finalising the vehicle, forward the invoice.

7

Final approval and payment

We will organise the final approval and payment to the seller.

How quickly can you get a vehicle loan?

One of the factors that impact the speed of a loan process is ensuring that all relevant documents are submitted. The pre-approval can be obtained in 3-4 days if the documents are provided as required.

Talk to us today to know more about your options.

As always, if you have any questions, please get in touch with us.

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