As the name suggest, it’s a simple loan for a car. Ideal for consumers looking to buy a car. Normally interest rates are competitive and can be approved for new or old vehicles up to 8 years old.
The car is used as a security against the loan.
Personal loans are available for cars also. The interest rates are normally higher in this situation but are an ideal option if the car you are purchasing is quite old or a modified vehicle where the bank is not happy to use the car as a security. These loans are normally unsecured so the car can be sold if need be before you pay off the loan.
This is kind of business asset loan. Interest rates are normally competitive. The business will normally own the vehicle in this loan but the bank will use the vehicle as a security. All expenses can be tax detectable and gst can also be claimed on assets purchased with this loan.
This is becoming a popular option for employers. In this loan type you can purchase a vehicle for your employee and three parties are involved in this loan. There is an employee, employer and the financier. The employer will cut certain pre tax salary from the employee and use that to pay of this loan. GST can also be claimed for employee even though they are not registered for GST. You should definitely talk to your accountant on this option.