Under a car loan, you borrow money to purchase your new car and then pay it off in monthly instalments. Interest is charged on the money you borrowed, along with associated loan processing fees. This is typically incorporated into the monthly repayment figure you pay back. This loan is paid back over a given timeframe, which can be flexible to your circumstances. You will need to apply for a loan to determine your eligibility.

Each method has both pros and cons and you might want to engage your financial adviser to help you make that decision. For most people, the main benefit of a car loan, over other forms of payment, is that it allows you to have access to your brand new Subaru today, rather than having to wait to save up for the full purchase price.

Subaru offers a convenient one-stop-shop to organise both your finance and the purchase your vehicle, potentially saving you time over organising money through a bank. You also know that Subaru is a brand you can trust and the option of a Guaranteed Future Value2, which banks do not offer, can also be an attractive benefit.

A balloon payment is a lump sum of money at the end of your loan term, that you need to repay to fully pay off your loan and own your vehicle outright. The size of your balloon will impact the amount of your monthly repayments ie generally speaking, the larger the balloon amount, the lower the monthly repayment amount.

There is a risk associated with every loan application. This is due to the loan having to be paid over a period which puts the repayments at risk. One way financiers reduce this risk is through securing the car against the loan. In order to do this the financier will register a security interest against the car on the Personal Property Securities Register (PPSR). If you fail to meet repayments, the vehicle may be recovered and sold to cover the cost of the loan and associated recovery fees. Almost all car loans will be secured against the car.

Depending on the application, it can take as little as a couple of hours to secure your approval – if you have a good credit history, can provide proof of your income, assets and liabilities and other identification verification upfront.

A Chattel mortgage is a popular car loan for businesses, because the business is the owner of the vehicle instead of the individual. You will need to provide the business’ ABN and confirm that you intend to use the car primarily for business purposes. If you meet these criteria, talk with our friendly team at a participating Subaru Financial Services Retailer to understand how best to structure this loan for your needs.

For a quick, hassle-free car loan application you’ll need to provide documents that prove you’re a reliable borrower. Documents such as –

• Personal information and identification
• Proof of income
• Proof of assets and liabilities
• Information about your car and insurance

The amount you can borrow will entirely depend on your personal circumstances. It’s best to talk with one of our team at a participating Subaru Financial Services dealership to help understand how much you can borrow.

Assuming you are eligible for a car loan, the amount of your repayments will be determined by a number of factors including your credit history. The car loan calculator on our website can give you a quick estimate of what your potential repayments might be, but this may differ to your personal rate so it is best to talk to the Business Manager at your Subaru Retailer.