A consumer car loan is a secured personal loan for the specific purpose of buying a new or used car. Usually the majority of the vehicle usage is for private purposes. You borrow an amount of money that you agree to repay within a specified period which can vary, but is usually 1 to 7 years.
Once approved your credit contract will specify the amount you have borrowed and the terms of your repayment.
The interest you will pay on a loan can either be a fixed rate where the interest rate charged is locked in for the terms of the loan or alternatively you can elect to choose a variable rate where the rate repayments can fluctuate with the market. However, this gives you ultimate flexibility as a borrower. A benefit of a fixed rate loan is having set repayments however you may be charged an early termination fee should you make extra repayments and pay out your fixed rate loan early.
Our NEXT Finance advisors can assist you in selecting the right product for your needs and make the process EASY.