Car Loans & Personal Loans
GUIDE TO APPLYING
STEP 1 – PREPARE TO MAKE YOUR PURCHASE
- Work out the total amount you want to borrow without compromising your lifestyle
- If you’re buying a car, apply for a pre-approval to give you peace of mind when you’re ready to make your purchase
STEP 2 – DECIDE ON A SECURED OR AN UNSECURED LOAN – TALK TO NGC FINANCE
If you’re borrowing to buy a car you can choose between the two main types of debt – secured or unsecured. So what’s the difference?
Secured loans are backed by the car you are purchasing in a similar way that a person’s home loan is backed by their house. That means that if for some reason you can’t make your repayments, you might have to give up your car to help cover the outstanding balance on the loan. However because you are willing to provide this security, the interest rate is generally lower.
Unsecured loans are not backed by your car, which means you aren’t legally required to give it up if you can’t make your repayments. However, as there is a legal obligation to make your required payments on the loan, a default could adversely impact your credit rating.
Salary packaging (also known as salary sacrificing) is an agreement between an employer and an employee, where the employee agrees to forgo part of their salary in return for the employer providing them with benefits of a similar value.
This enables employees to take advantage of the potential benefits of flexible salary packaging, by maximizing the tax effectiveness of their income. This can be done on an array of products including laptops, extra super payments and vehicles.
Salary packaging or salary sacrificing a vehicle is known as a Novated Lease, and can allow a driver to save money on their next personal motor vehicle and operate it in a tax and cost effective manner.
STEP 3 – APPLY – WE WILL SHOW YOU THE DIFFERENCE IN LOAN TYPES
- An unsecured fixed rate personal loan means your repayments are fixed so you’re protected from interest rate rises
- An unsecured variable rate personal loan allows you to make extra repayments at any time without a fee
- A secured car loan gives you a lower rate and more affordable repayments in exchange for securing the loan with your car