Car Finance Guide for Melbourne: Loans, Novated Leases and Business

Car Finance Explained

Finance can make a better car affordable, but the options can be confusing. Here are the main types in plain English. This is general information only, not financial advice.

Consumer car loan

A secured loan for personal use, with the car as security. You own the car from day one.

Novated lease

An agreement between you, your employer and a finance company. Payments come out of your salary, often partly before tax, and can bundle running costs. Electric cars under the government price threshold may also be exempt from fringe benefits tax.

Chattel mortgage

The usual choice for businesses and ABN holders. The business owns the vehicle and may be able to claim GST, interest and depreciation. Speak to your accountant.

Balloon payments

A balloon lowers your regular repayments, but leaves a lump sum to pay at the end. Plan how you will pay it.

Tips

• Compare the comparison rate, not just the headline rate.
• Ask about fees and early payout costs.
• Get pre-approved so you know your budget.

Talk to our finance team

Our finance team works with a panel of lenders. Send an enquiry through our finance page or the form below.

Visit or enquire

Browse new, demo and used stock online, see the latest offers, or use the form on this page and the right dealership will get back to you. You can also see all our dealerships.