How to Find Which Car Finance Option is The Best For You?

There are very few people who go for outright purchase of the car after negotiating the discounts. In reality, almost every person who wants to own a car, for personal or for business purposes, takes a car loan or gets the car lease done for the same. There are many options of the car finance available to the car buyer to work on. He can go for any one of the following options, like:
1. Car Lease
2. Commercial Hire Purchase
3. Chattel mortgage
4. Novated lease with salary packaging
5. Fully maintained novated lease
Each of the methods is different in that there is a difference of the ownership of the title and the arrangement with the finance companies with each of these.
With these options, it is often perplexing for the prospective car buyers to figure out what type of loan arrangement they shall work out with the car finance companies. There could be a number of determinants to guide your buying decision in this regard. The online sites can also guide you in this respect. Using the differentiating criteria which can influence the choice of your decision, the sites seek answers to be input from your side in successive steps before telling you which is the best option for you.
Step 1: It might ask you to enter your status in the first go. Whether you are an individual, a sole trader, a partnership firm or a company, you are required to enter the same. The benefits to be availed of are different for each type of the business formation.

Step 2: After choosing your status, the next questions could be on the nature of your remuneration being received. Whether it is the packaged salary that you are getting or what is the system of account that you are maintaining (cash or accrual basis). The reason for asking the same is that the tax benefits for certain forms of organization are dependant on accounts maintenance and salary account types.

Step 3: It will come with the best car loan options that are available to you depending upon what you have entered before in the preceding steps. It will also tell the reasons for arriving at such a decision, like the different types of tax benefits that you can receive.

Though you can make use of these sites which offer this approach for telling which car finance option is best for you, the same shall be cross checked and verified with a chartered accountant or asked from a friend. If you are employed somewhere, then you can always ask the employer whether is a provision for the novated lease to be carried out packaged with the salary. Another reason for cross-checking the same is that the site which has in-built formula for calculating the various entries, might not have been updated. So, the result that you might be getting could be based on wrong and outdated formula calculators.

Madison Finance is the provider of different types of car finance options to the customers. It allows you to compare the car lease choices provided by various car loan providers.


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* How do you choose the best car loan? This easy car loan comparison shows you how to cut through the BS and choose the best and cheapest car loan.

Doing this makes car finance easy, and allows you to identify the truly cheap car loans from the more expensive ones. The best car loan rates are often not the best way to choose a loan – because fees and charges add substantially to the real cost of car finance. Choosing the lowest car loan repayments is a flawed strategy too.

This review is a simple ‘how to’ guide to deciding – simply and logically – which car loan is the best car loan for you.

Don’t decide on the spot at the dealership – take your time and look hard at any finance that is offered to you.

For more information on the different types of car finance, go here:

If you need help getting a bunch of solid car finance options in front of you – all from reputable Australian lenders – contact me here:

You can be sorted in under 48 hours.

And don’t stress if you have a bad credit history – reputable lenders have tailor-made products for you, subject to meeting some sensible credit criteria. Don’t be put off by the names – ‘bad credit loans’ or ‘bad credit car loans’ – these are reputable commercial car finance products.

Car Loan Calculator - Easy Car Loan Comparison Car Loan Calculator – Easy Car Loan Comparison

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Category: Finance

11 Responses to “How to Find Which Car Finance Option is The Best For You?”

  1. I was the "Finance Guy" doing the 6/12 months Interest Free loans at an Electrical Retailer in Sydney a few years ago. And being on commission, I actually knew the algorithm the finance company used to give the nod on a loan or reject it, so I would get creative with the figures I crunched into the computer…
    For example.
    What is your monthly income – $4000
    What is your Rent? – $2000 / month
    BOOM, instant fail, the ratio was 60 disposable / 40 committed, so i'd then say "Does your wife work?" – Yes, part time – so I would then say "Does she pay half the rent? nodding, smiling" – YES, She does…
    Great, so lets fudge that figure to $1000 a month then…
    Credit Cards? – Yes, $1000 a month = Fail – so I ask if it's a joint card, Why Yes it is. So the answer goes to $500 a month.
    That puts them at a 70/30 advantage, repayments on the new TV were $40 a month minimum over 4 years, so it gets auto-approved by the computer.
    After 6 months it'd kick up to 26% interest, so I would tell people.. Mate, the TV is $1200, YOU MUST PAY $200 a MONTH TO NAIL THIS THING DURING THE INTEREST FREE PERIOD. IF YOU DON'T, YOU WILL BE CHARGED 26% INTEREST AND THEY WILL FUCK YOU FOREVER!!!
    Most people got it, and would come back in 6 months and do it all over again, new Fridge, new Stereo, etc… Some people would get completely ass-raped because after 6 months they had only paid off $240 on the Telly, and owed $960 + 2.2% every month, that's $20 a month, or HALF of the minimum repayment.
    The company is now named GE Finance……..
    What I learned from that is to NEVER have a credit card, and if I couldn't pay for something in cash, I could not afford it. So Fucking Simple.

  2. Great value add. John thank goodness for people like you. The guardian Jedi knight for us car suckers out there!

  3. Great advice as usual. I was about to buy a Toyota Corolla based on monthly payment ceiling amount. I had specified some criteria and asked the sales "manager" to email me the figures for total value, rate, term, etc so I could make sure it was all in order. He completely ignored this and phoned me. Over the phone I said I'd like the figures by email so I have a record. He rudely scoffed at me and said "I don't have time for that!" – So he didn't make a sale to me :-)

  4. love this guy

  5. What do yo think about Gap Insurance? Is it really necessary? Thanks

  6. John: What is your opinion on leasing? From the research I have done, it seems like a losing proposition especially since it bases the payment on a possible future value, but we all know how fluid things are. And that you own zilch at the end of the lease.

  7. I agree with just using a calculator. There is no smoke, or mirrors, involved in such a simple interest loan transaction.

  8. Gadiel Santiago (Wombat) December 19, 2016 at 4:07 pm

    best info ever! thanks

  9. Wish you lived in Canada ordered new truck trying to decide to go through my bank at around 6% 72 months or dealership at 2.49% 72 months I guess there are a lot of hidden costs I'm not aware of with dealership is there a way I could find out more information before truck comes in thanks for video

  10. I'm a first time buyer just came from the dealership and don't know a thing about financing and interest it sounds a little intimidating to be honest so I didn't sign for the car just yet; would you recommend I just get a loan straight from the bank and pay the car in cash and pay the bank instead?

  11. stendec Stretcher December 19, 2016 at 5:46 pm

    Not enough people are watching this video. Not sexy working out finances but as you say John can save money in the long term.

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