Every year, Australians purchase hundreds and thousands of new cars, and around 90% of these vehicle sales are arranged through finance. While paying cash for vehicle purchases comes with its unique pros and cons, car finance is becoming increasingly popular in Australia because of its obvious advantages.
In this post, we take a closer look at some of the reasons why vehicle finance has become a lot more popular in recent times.
#1. Vehicle Finance Allows You to Borrow the Full Amount of the Vehicle’s Purchase Price
When you need a vehicle quickly, vehicle finance ensures that you don’t have to wait until you have all the amount required to purchase the car. In fact, it doesn’t even require you to save part of the money. However, you must make monthly finance repayment, which is almost always convenient. Moreover, you can also reduce your monthly repayment amount by extending your loan term. And while making monthly repayments means you are paying interest, it is a convenient and more affordable choice for most people.
#2. Vehicle Finance Provides You Access to a Wider Choice of Vehicles
When a shortage of funds is a concern, most people look up to purchasing a used vehicle. And while it seems like a cost-effective solution, it is not always the best choice as used vehicles often require more repair and maintenance. But when you have access to funds through vehicle finance, you can choose a brand new vehicle of your choice, which might seem like an expensive choice but will surely save you a lot of money in the long run.
#3. Vehicle Finance Payments are Tax-Deductible
Another way vehicle finance saves you money is because the interest payments are tax-deductible. Moreover, apart from the tax saving, if you are investing in the vehicle for commercial purposes, you may be eligible for the government of Australia’s instant asset write-off scheme. The write-off scheme applies to both new and second-hand vehicles and equipment under $150,000, on which you can claim an immediate deduction.
#4. Vehicle Finance Aids in Establishing Your Positive Credit Rating
Your lender will check your credit history when you borrow money for anything, including a vehicle, before approving the finance. A successful loan application and subsequent monthly repayments for your vehicle will improve your likelihood of a better credit rating for future loans.
If you are buying a car for personal or commercial use, you can find several finance options. At Humble Finance Brokers, we can facilitate vehicle financing for personal and business use. Whether you are a first-time vehicle investor or want an upgraded vehicle to fit your family's needs well, we offer our valued customers the most competitive rates and flexible loan terms. To learn more about vehicle finance and car loans, get in touch with us today.