As Subaru Levorg dealers we are often asked about ways to finance a car purchase. Any car represents a significant, and many of us cannot afford to buy a car outright. For this reason, many people look at different ways to finance their next car purchase. There are a number of methods available and not every solution will be right for every client. It’s important to understand how car financing works to ensure that you get the right product to suit your needs. Let’s take a closer look at car financing so that you can make a more informed decision.
What Finance Options Offer Good Value?
A really savvy buyer could use a novated lease if their employer and the Australian Taxation Office are in agreement. A novated lease can be offset against your taxable income, and thus it will save you interest. Essentially, you would be charged less for your tax because the repayment for the lease will be deducted from your pay before your tax is calculated. If the loan repayment reduced your pay below a certain tax threshold, you might get an even better tax break.
What are Some Other Financing Options?
If you don’t have a wage that incurs much in the way of tax, you’re on a fixed income or retired or even if you’re living at home with your parents a personal loan could be a good fit. This is an unsecured loan with no tax advantages that is easy to get if the borrowed amount is fairly modest. Some people find that a mortgage redraw works for them, but this is an option that would cost more in interest over the long term. A hire purchase is a form of secured loan than in most respects functions much like a conventional car loan would.
What is the Difference Between an Unsecured and Secured Loan?
A secured loan is a loan that requires the borrower to provide some form of collateral. This is usually property that will guarantee that the borrower will not default on the loan. Failure to stick to the loan repayments could result in the property being seized and sold to pay the outstanding balance owed. In car finance, the collateral is usually the car that is being purchased, so if you fail to make payments, the car is repossessed and sold. An unsecured loan is usually a personal loan if you default on payments the lender will use legal means to recover their money.
When looking for a Subaru Levorg for sale in Perth local drivers should get in touch with us at City Subaru. We have a massive choice of both new and used cars available for sale including the Subaru Levorg. We would like you to join us for a no obligation test drive, and you can try out the excellent Levorg for yourself. If you need a finance deal your new purchase, you will discover that our rates are highly competitive with repayments tailored to suit your circumstances. Our sales team is here to advise you of our latest hot deals, and they will be happy to answer any questions you may have.