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Frequently asked questions

General

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If I get an auto loan from DriveNow Finance, can I use it to buy a car from anyone?

Yes you can. We’re a independent finance brokerage company. So our focus is to help get you a better deal, without the hassle and fuss.

Do you offer car loans in all states of Australia?

Yes we do. We can help you get a better finance deal wherever you might be. We have a professional and experienced team of industry experts on-hand ready to help, whether that be over the web, on the phone or in person on site.

Does DriveNow Finance have an interest in any particular lender?

No. DriveNow Finance is fully independent. That means we can go out and talk to a panel of lenders and keep them honest to offer you the best finance deals. And because we don’t have any ‘under the table’ relationships with any particular lender, and we charge a fixed fee regardless of whatever lender you choose, you can rest easy knowing we’re on your side, not theirs.

What are the benefits of dealing with DriveNow Finance instead of going through my bank?

Think of DriveNow Finance as being like your finance wingman. We go out and do all the legwork for you so you don’t have to. We’ll compare all options from lenders right across the country, and lock down the best deal for you, which means you’ll save the pain and hassle of researching and comparing options, and in turn, save money.

We aim to provide instant finance quotes, and fast approval either online or when you visit us at any Manheim location.

Applying For Finance

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How do I apply for an auto loan?

Applying is easy. First, complete and submit your details through our online enquiry form. You will then receive a call within several business hours from one of our finance experts to discuss your quote and available loan options. Just remember, all applications are obligation free.

Alternatively you can call us direct on 1300-DRIVENOW and our team of experts will facilitate the application process over the phone with you.

In order to submit a loan on your behalf we will need to take an application. This means one of our experts will talk to you about your loan requirements. This is so we can determine which is the best loan option for you. In addition, the financiers will also need information about you – for example, your employment status.

How soon will I know if my auto loan application has been approved?

In most situations everything can be completed over the phone and email, and the loan approval can take place the very same day an enquiry is made. Now that’s fuss-free.

Fees & Rates

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Is the interest rate fixed or variable?

All our lenders offer Fixed Rate loans no matter which loan product you choose. That means you know exactly what to budget for each payment period.

Are there any ongoing fees?

This will depend on the lender you choose. Most (but not all) lenders will charge a minimal monthly account keeping fee. Our finance experts can discuss this with you directly in greater detail.

Does DriveNow Finance charge a fee to apply for an auto loan?

We charge a flat fee of $660 irrespective of which lender you choose. This fee can be built into your total loan amount, which we find is a popular choice amongst our customers.

Car Buying Help

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Can you help me find a car?

Yes. We certainly can. Through our friends at Manheim, we can introduce you to a buyer advocate in any of the Manheim locations where we are present. We can also let you in on a great deal through our massive network of affiliate BuyNow offices right across Australia. Whatever you’re after, we can help.

Available Loan Types

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What types of car loans do you offer?

We offer four types of loans – Fixed Rate Consumer, Chattel Mortgage, Finance Lease and Novated Lease. You can read more about them below, or call one of our finance experts and they will explain them to you. Whatever’s easier!

About Consumer Loans

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What is a Fixed Rate Consumer Loan and how do they work?

A Fixed Rate Consumer Loan is a finance product where the financier provides the borrower with the funds to purchase a vehicle for mostly personal use. The vehicle is used as security for the loan and at the end of the contract period the customer retains the full title of the car.

What are the features and benefits of a Consumer loan?

The benefits of a Fixed Rate Consumer loan include:

  • Flexible contract terms, or length are available (ranging from 3 -7 years)
  • A residual can be applied to the loan, reducing the monthly instalments
  • A deposit can be used (either cash or trade in) which reduces the amount of the loan
  • A tax deduction may be applicable if the vehicle is to be used for business purposes
  • Lower interest rates are available as the loan is secured against the car
  • No additional security is required.
Who is eligible for a Consumer Loan and who does it suit?

Fixed Rate Consumer Loan is best suited to a person who uses their vehicle predominantly for personal use, however it can be used for business purposes. If you’re self-employed or considering purchasing a car for your business, it’s best to have a chat with your accountant to determine whether a Consumer Loan best meets your business needs.

About Chattel Mortgages

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What is a Chattel Mortgage?

A Chattel Mortgage is a commercial finance loan used by businesses and individuals for the purpose of purchasing a vehicle predominately for business use. Applicants (if not a company) must have an ABN and be registered for GST.

Chattel Mortgage is essentially a mortgage over the vehicle to be financed. i.e. the finance company advances funds to the customer to purchase a vehicle and the customer takes ownership of the vehicle at the time of purchase. The financier takes a mortgage over the vehicle as security for the loan. At the end of the contract period the security interest is removed and the customer retains full title of the car.

What are a Chattel Mortgage's features and benefits?

The benefits of a Chattel Mortgage include:

  • Flexible contract terms ranging from 36 to 60 months (three to five years)
  • A residual value (balloon) can be applied to the contract enabling the monthly repayments to be tailored to suit your budget.
  • Fixed interest rates
  • Monthly repayments are fixed and may be payable in advance or in arrears
  • Deposit (unlike with Leases) may be used
  • Customer may be able to claim depreciation, running costs and interest paid, against your business income at the percentage that the business use applies.
  • GST is claimable in one lump sum (up to the luxury car tax limit) for Businesses with an ABN & registered for GST who are either cash accounting or accrual accounting.
  • No GST is charged on the monthly repayment or the contract balloon amount
  • The finance is secured against the vehicle, allowing lower interest rates
Who is eligible for a Chattel Mortgage?

Chattel Mortgage is suitable for those sole traders, partnerships and companies who use the cash method of accounting as it allows them to claim the GST in the vehicle’s price up-front immediately (next BAS period).

About Finance Leases

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What is a Finance Lease?

It is a commercial finance product that allows the customer to have the use of a passenger or commercial vehicle, while the financier retains actual ownership of the vehicle.

The financier buys the vehicle on behalf of the customer, who then leases the vehicle from the financier and pays a fixed monthly lease rental for the term of the lease.

At the end of the lease the customer can either pay a residual value on the lease and assume ownership of the vehicle, re-finance the residual or trade in and purchase another vehicle.

What are the benefits of a Finance Lease?

Benefits include:

  • Lease payments are normally tax deductible
  • Flexible contract terms ranging from 36 to 60 months (three to five years)
  • Fixed interest rate
  • Fixed monthly lease rentals make for easy budgeting
  • As the GST on the car’s purchase price is claimed by the financier, only the vehicle’s GST exclusive price is financed, thereby lowering monthly payments
  • Ability to make advance lease payments for tax deduction or cash-flow purpose.
  • GST is payable and then claimable on the lease rentals.
  • All leases must have a residual (balloon payment), lowering monthly payments
Who does a Finance Lease suit?

A Finance Lease is used by businesses or individuals for the purpose of purchasing a new or used vehicle that is used for business or investment purposes. Borrowers must be registered for GST purposes.

But just wait a minute, there are also tax implications for a Finance Lease. GST is charged on the monthly lease rental and on the residual value at the end of the lease. Where the customer is registered for GST, they can claim some or all of the GST contained in the lease rental and the residual value as an input credit on their next BAS. Where the amount financed is below the Depreciation Limit the customer can claim the lease rental as a tax deduction. Where the amount financed is above the Depreciation Limit, the customer can claim interest charges on the lease and depreciation up to the value of the Depreciation Limit.

About Novated Leases

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What is a Novated Lease?

Novated Lease is essentially an agreement between the employee, employer and a Finance Company to enter into a Finance Lease.

How does a Novated Lease work?

The employee (borrower) enters into a Finance Lease to purchase a vehicle and novates the lease payment to the employer. i.e. transfers the responsibility for the lease payment to the employer for the term of the lease. The employer pays the lease payments out of the employee’s pre-tax salary.

Should the employee leave the employer during the period of the lease then the borrower becomes responsible for the lease payment.

The borrower can novate the lease to a future employer if so agreed.

It’s worth nothing, Fringe Benefits Tax (FBT) is payable on the vehicle, and this expense is normally passed on to the employee. The amount of FBT depends on the kilometres travelled each year. The higher the kilometres, the lower the FBT.

What are the benefits of a Novated Lease to Employee?

The benefits include:

  • Reduce your income tax – more in your pocket
  • Saves you GST on the purchase of your car – as it is a Finance lease
  • Employer may be eligible for fleet discount on purchase price of vehicle
  • Choice of car that best suits your personal needs
  • You can take the vehicle and lease with you if you change jobs
  • Vehicle is registered in your name
  • No business use requirement

Contact us today

Get in touch with DriveNow Finance and get into your dream wheels quicker.

Call direct on 1300 035 987 or complete the form and one of our experts will get back to you.

Leaseline & General Finance Pty Ltd (ABN: 51 010 131 361) t/a DriveNow Finance respects your privacy and will never sell or share your email address.

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