Frequently Asked Questions

When you take out finance for a vehicle there are many options available to you, and it can sometimes be quite complicated to decide what best suits your needs.

Individual / Personal Use

Novated Lease Option

If your employer allows salary packaging, a Novated Lease could be a great option.

A Novated Lease is a 3-way agreement between you, your employer and the finance company. Payments are generally made out of your pre-tax income and exclude GST, which can provide you with some great savings.

This type of agreement will attract some Fringe Benefits Tax (FBT), which most employers pass on to the employee. However, the employee usually comes out well in front.

Personal Finance Options

As a private vehicle buyer you have two main options - a car loan (secured consumer loan) or a personal loan (unsecured personal loan) will be most appropriate for your needs, depending on the car you are buying and your financial situation.

All Credit Finance Pty Ltd offers loans with or without balloon payments/residuals.

Depending on your circumstances and the type of loan selected, terms are available from 24 months (2 years) to 84 months (7 years), and residuals ranging from 10% - 40% pending on the term of the loan and age of the vehicle.

By utilizing a residual value you can reduce your payments considerably and improve your cash flow.

Residual values are generally only available to borrowers with a finance history or asset backing, for example someone who owns (or paying back a mortgage on) their own home.

Sole Trader,Partnership,Company

Cash Basis Accounting

If you are registered for GST, you can take advantage of your GST status a number of ways.

You can either use a Chattel Mortgage, which allows you to claim back the GST, or a Finance Lease, which will reduce your loan amount by the amount of GST payable on the vehicle.

Accrual Basis Accounting

If you are using "accrual basis accounting", you have the option to use a Hire Purchase (also known as Commercial Hire Purchase or CHP), which will allow you to claim the GST portion of the vehicle price back as input credits.