subject: Cheap Bank Car Loan Rates Australia Wide [print this page] There are two types of bank car loans given out in Australia. They are secured loans and unsecured loans. The period of paying back the bank car loans is five years. This is true for both the cases. The car loans are paid back on the basis of fortnight payments or in monthly installments.
YOU CAN PAY BACK THE CAR LOANS IN THE FOLLOWING WAY:
By direct debt payments
Payments can be made by cheques
By means of BPAY
With the help of internet banking
By means of direct payroll
Of course, cash payments are accepted.
You can consider insurance, warranty and loan protection to the car loan that you are applying for.
THE ROLE OF DEPOSITES:
Most of the times, deposits are not necessary. However, if your application is considered as a borderline application and your chances of getting the loan is thin, you can secure a loan by showing your deposits.
In the case of a car loan, just like a home loan, interest is counted on the amount that is unpaid on a daily basis. If you can make extra payments or additional payments, do them without a second thought. This will shorten the term of your loan. It will also cause a reduction in the amount that you are paying as interest. Some of the Australian car loans give you a fixed interest rate on your loan for a period of time. The interest rates go up if payment is not completed by the end of the specified period. If you pay back the loan, you wont have to pay additional interests.
Another form of payment has come up in the market. They are called balloon payments or residual option. In a balloon payment, you can pay off a lump sum amount at the end of the payment term. This big payment may vary. But it will surely reduce your outstanding amount. At the closure of a term, you can pay either the entire amount at a go or take a few more installments to pay it in big shares.
THE TYPES OF CHEAP CAR LOANS:
Secured: most of the cheap car loans in Australia that are given for bikes, cars, boats etc are secured car loans. The vehicle that is being purchased is regarded as security for the loan. If you sell you must complete the payment of the existing loan. You may take another loan if you want money to purchase some other thing. Secured loans are preferred as they have lower interest rates.
Unsecured: unsecured loan is a sort of a versatile loan. You can get an unsecured loan for the purpose of meeting out a debt, to finance a holiday or to finance a wedding. You can get a secured loan to finance a car or a boat if you cannot obtain a secured loan. The rates of interest that are associated with unsecured loan is higher than it is in a secured loan.
