Rumo Finance takes you through the steps on how to buy a car (or a truck or boat), on finance.
When considering buying a car, whether it's for personal use, business, or as an ABN holder, financing options can significantly impact your decision. Rumo Finance, based in Australia, specialises in providing tailored car, truck, and boat finance solutions.
In our guide below, we'll take you through the various car financing options available. fFom paying upfront to bank loans, novated leases, and loans that have a balloon payment, we want to help you make an informed decision.
Paying Cash and Buying Outright
Paying cash for a car means purchasing it outright without any loans or financing. This option is often used for second-hand vehicles or when using equity from a previous car. While it can save you from paying interest, it might not be the best financial move if it depletes your savings.
Pros:
No interest payments or monthly installments.
Immediate ownership with no financial obligations.
Cons:
Drains savings, reducing liquidity for emergencies.
No potential to benefit from interest-free or low-interest finance deals.
Limited expansion available for business and start-ups that need vehicle or equipment growth to operate.
Getting a Loan for a Car
A loan is another choice for financing a car, especially if you plan to keep it for less than ten years. Rumo Finance can help you navigate through various personal loan options, ensuring you get competitive interest rates and flexible terms right now, just click the apply now button.
Pros:
No deposit necessarily required.
Flexibility in vehicle usage without restrictions.
Quickly scale and expand operations for business.
Fast online process.
Cons:
Interest rates can vary, so it's crucial to compare APR (Annual Percentage Rate) which the team at Rumo Finance will provide to you.
Check for possible additional fees like monthly account keeping charges.
Car Manufacturer Finance Loans
Many car manufacturers offer attractive finance deals through dealerships, often with low-interest rates. These loans might require a significant deposit but can include benefits like servicing costs over a set period.
Pros:
Low-interest rates can make them cost-effective but be careful for T&C's which add costs.
Bundled servicing costs can simplify maintenance.
Cons:
Requires a hefty initial deposit.
Terms and conditions can be complex, so always read the fine print.
Additional charges for account keeping and others can add to monthly payment.
Novated Lease
A novated lease involves an agreement between you, your employer, and a finance company. It's a form of salary sacrifice where the lease payments are deducted from your pre-tax income, potentially lowering your taxable income.
Pros:
Reduces taxable income.
Includes additional benefits like fuel, maintenance, and insurance.
Cons:
Dependent on employer's participation.
Potential tax implications, so consult with a tax professional.
Car Loans with Balloon Payments
Balloon payments involve a larger lump sum due at the end of the loan term, often used for more expensive vehicles. This option can lower monthly payments but requires planning for the final payment.
Pros:
Lower monthly repayments.
Flexibility at the end of the term: pay the balloon amount or trade-in the car.
Cons:
Large final payment.
Potential tax implications, including fringe benefits tax.
Get Started with Rumo Finance
Choosing the right car finance option depends on your financial situation, employment status, and long-term plans. Rumo Finance offers a range of solutions tailored to business clients, ABN holders, and private buyers in Australia. Whether you're considering a bank loan, novated lease, or manufacturer finance, our experts can help you find the best deal.
For personalised advice and competitive car finance rates, contact Rumo Finance today. Our team is ready to assist you in securing the ideal financing solution for your next vehicle purchase.
_edited_.png)
Коментарі