Car and Vehicle Loans
Why Choose Centrum?
Leading Australian businesses trust us as their financing partners.
Strategic Approach
Most brokers focus on mortgages with the lowest rates and the fastest approvals.
Our approach combines a strategic approach with a long-term outlook – how will a loan support your financial goals today, tomorrow, and in five years?
Client Advocacy
You have a right to safe, comfortable private transport – regardless of your credit score or financial history.
Our lending specialists act as your advocates, working to source financing for your ideal vehicle.
Lender Diversity
A small lending panel can restrict your choice of mortgages.
We proudly partner with over 40 bank and non-bank lenders, giving you access to a genuinely diverse range of products.
DRIVE YOUR WAY TO A BETTER FUTURE
FAQs - when buying a car
Yes, you can generally finance the purchase of a used car. The main difference between
new and used car loans is the willingness of lenders to use the vehicle as collateral. Old or
heavily used cars are worth less than newer vehicles, which means the lender may not view
them as a good form of security.
Even if your prospective vehicle is old, though, most lenders will still finance it (either via an
unsecured loan or by using another asset, such as your property, as security).
When you finance a vehicle, the vehicle’s purchase cost is amortised over the life of the loan (that is, split into even repayments every week, fortnight or month, plus interest and fees).
Some lenders, though, have balloon payments as an optional feature. A balloon payment means that the vehicle’s purchase cost is only partially amortised; the remaining sum is due at the end of the loan term as a one-off, lump-sum payment.
For example, if you purchased a vehicle for $30,000 with a five-year loan term at 5.6% p.a. interest, you might normally pay $132.35 per week. If your lender agreed to a balloon payment of 20% ($6,000), though, you would only pay $112.34 per week, with the remaining $6,000 due on the loan’s maturity date (the final day of the loan’s term).
Balloon payments can help improve your cash flow during your loan’s term, but keep in mind that you’ll need to find a way to save for the final payment.
You can’t transfer a loan to a family member. Lenders are legally obligated to practise responsible lending, which means they can’t enter into a credit contract with a consumer if the contract is unsuitable for the consumer. Because your lender has made a credit contract based on its compatibility with your financial situation, not your family member’s, a direct transfer of your loan isn’t possible.
You could, however, sell your car to your family member (with your lender’s permission). Your family member could take out either a personal loan or car loan and pay you the value of the car; those funds could be then used to settle your loan with your lender, allowing you to complete the sale and transfer ownership of the vehicle to your family member.
If you’re employed in a full-time job, a car loan isn’t the only way to acquire a new vehicle. Novated leases are a form of financing that involves payments being made from your pre-tax salary (salary sacrificing). Your employer makes payments to the lessor on your behalf, which are automatically deducted from your pre-tax pay. Novated leases can substantially reduce your income tax – and, because your employer acts as your guarantor, they’re also often easier to secure.
Example: If you leased a $30,000 vehicle at 5% interest on a $70,000 salary with a five-year term, you would be left with $51,613 each year – versus $49,655 if you took out a traditional car loan instead.
Find Your Lending Scenario
Car, Ute and Motorbike Loans
Vehicle Loan Refinancing
Boat and Jet Ski Loans
Electric Vehicle Financing
Loans for Caravans, Campervans, and Tractors
Loan Application Process
Schedule a 30-minute consultation with one of our lending specialists.
We’ll discuss your current financial circumstances, long-term objectives, and vehicle ownership expectations.
You submit your financial information to your Centrum lending specialist.
Once we’ve analysed your submission and assessed your borrowing capacity, we’ll consult our lending partners.
We present all viable financing options to you, modelling the financial outcomes of each one over different timeframes.
Once you’ve decided on a financing pathway, we’ll prepare your loan application.
You review and sign your finalised loan application.
We’ll then submit your application for approval to the lender you’ve chosen.
If your application is successful, your lender will issue pre-approval.
Once you’ve found a vehicle you want to buy, your lender will assess its value and suitability. If they’re satisfied that it matches their criteria and is suitable as collateral, they’ll issue unconditional approval.
Following unconditional approval, you receive a loan offer document.
This includes a contract that you need to sign.
You can ask your Centrum specialist to explain the contract’s terms.
Once your contract is signed, your lender advances the loan.
You can purchase your vehicle and take possession of its registration papers, service history, and logbook.
Finance vehicles for business use
Commercial vehicles, such as company cars, yellow goods, and trucks, have different financing requirements to personal vehicles.
Find out how our lending specialists can support you with financing options like chattel mortgages, finance leases, and hire purchases.
Borrow With Bad Credit
A personal vehicle is probably essential to your lifestyle, and bad credit shouldn’t be a barrier to ownership.
Our lending specialists approach each lending scenario with two questions:
- How can we help you acquire your ideal vehicle?
- Which loan will be best for your long-term financial goals?
We act as your advocates, negotiating with lenders to help you secure the vehicle you want, regardless of your financial history.
But we also protect your future by helping you make an informed decision – one with full knowledge of each loan’s costs, impacts, and possible alternatives.
Schedule a 30-minute consultation to learn more about our advocacy-based approach to broking.
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