Personal Car Finance Options in Australia

A Guide to the Options for Your Personal Car Finance

Unless you are in a very fortunate financial situation, it is likely that you need some form of finance for purchasing your next vehicle. Research shows that the average car buyer spends only five percent of their shopping time comparing options for car finance. Perth consumers will often simply obtain their finance from their car dealership, which can be a costly mistake. There are a wide range of options available for personal car finance and you need to have confidence that you have chosen the correct option for you.

Personal Contract Hire:

Personal Contract Hire or PCH is a leasing option for new vehicles. This can be a great solution for those wanting a new vehicle without wanting to commit to car loans. Perth consumers can drive a new vehicle for a fixed term of between three and five years, without having ownership of the vehicle. This means that you will typically pay less each month but you will need to surrender the vehicle at the end of the lease. This is often the preferred method of personal car finance for people who wish to drive a better vehicle than they would be able to afford to purchase outright.

Personal Contract Purchase:

Personal Contract Purchase or PCP allows a consumer to use a vehicle for a set period with the option to purchase the vehicle at the end of the agreement or surrender the vehicle to the provider. There may be additional charges for excess mileage or damage beyond average wear and tear. This type of option tends to be used for those driving a company car to minimize tax liability.

Fixed Term Loan:

This is the most conventional form of personal car finance. Fixed term loans are available through banks and other financial institutions. You can borrow the funds needed for the purchase and agree a loan term. The Car loan is repaid with monthly payments to cover the capital and interest accrued. However, the rates of interest and terms can vary greatly between financial deals and providers. It is important to check the loan terms and compare interest rates to determine which deal is best suited to your particular financial situation.

Although shopping for a new vehicle can be exciting, it is important to take some time to research your finance options before you commit to a purchase. It is well worth comparing personal car finance deals & options to determine which would be most beneficial for you. Even some simple online enquiries can help you to assess whether the package offered by your dealership is the most advantageous. This will allow you to proceed with confidence, knowing that your new vehicle is not going to cost you over the odds.

If you would like to know more about personal car finance options, contact us. We specialize in finding the best financial solution for our clients. Our expert advisers would be happy to answer any of your questions and assist you in securing the best possible deal for your new car purchase.

I am a business Coach and Writer in Perth WA, Mom of 2 charming Sons. Cam is my name and for me Writing is Just like playing a Game.