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Because of the current state of the market and lower interest rates, it’s a great time to buy a car. Of course, you’ll still need to find a way to get auto financing to get your deposit together. Whether you’re planning to buy the model of your dreams or a simple vehicle to get you where you need to go, it’s best to consider the different options you have for financing.

Chattel Mortgage

A chattel mortgage has virtually the same process as a home mortgage, except you swap out the house for a car. This option is most often used by individuals planning to purchase the vehicle for business purposes. You set the length of the agreement, make your payments, and then earn full ownership by the end of the mortgage. 

Unlike home mortgages, however, these agreements tend to be shorter. And unlike other loans using liens, this method means the lender is considered the owner until all payments are made. This is a good option if you want a model that has a deposit you may not otherwise be able to afford out of pocket, although it does have fewer protections for your end in the event of a default.

Secured Loan

This is arguably one of the most popular types of loans you’ll find out there. A lender sets the value for your vehicle in the start so they can later sell it off should you be unable to pay your loan. It makes the vehicle you’re buying the collateral for the loan. 

This option has lower interest rates because lenders have less risk to manage, considering that they have your vehicle as collateral.

Dealer Networks

Certain car companies have dealer networks that have their own auto financing for prospective buyers. They usually use this to cut out the middleman and be able to maximise their supply line. If there are any promotions they are running or last-minute sales, you will do best connecting with one of their dealers.

You can get an unmatched offer with this route, although it can depend on what deals specific networks and companies are offering. Plus, you will still need to consider the total repayment price so that you can compare it to lenders and alternative finance providers. 

Novated Car Lease

This works for certain companies where the employer purchases a vehicle for your use as part of your salary package. Payments are deducted from your payroll earnings pre-tax. This is a good option if you want to already have the payments out of the way by the time you get your salary. Plus, you will likely lower your costs by ten per cent here because you no longer have to pay GST.

That said, it is still a “lease,” so it’s considered the property of your employer.

Car Brokerage

You could also simply reach out to a vehicle broker and have them assess which lenders and options will work best for your situation. This makes things a lot easier and more secure on your end. It can get you the best and most sustainable deal that you may not have otherwise found out about. That said, this method does entail paying a commission to your broker for their services, with a trial commission possibly part of the deal. 


These options don’t go in any particular order, so you can choose whichever one you feel is the best fit for your situation. Of course, it’s up to your assessment of your resources to figure out what alternative finance providers will fit the bill. Just make sure to canvas your options beforehand to learn more about what can cater to your needs the best.

Wealthy You is your best option for auto financing in Sydney. We offer a variety of solutions to meet specific financial needs and pride ourselves in finding the simplest and most affordable financing for individuals. Reach out to us today!