Motor Vehicle Loan

This type of loan is for a car that will be used mostly for personal use with the eventual aim of owning it outright. Terms range from one to five years. 

On road costs, registration and insurance can also be included in the finance package. 

Interest rates are typically fixed to provide protection against unexpected rises. Payments can be made monthly or fortnightly, preferably by direct debit. 

Motor Vehicle Novated Lease

This option lets you choose the car you want to drive for work and then allows you to take the car with you to your next job. 

It also allows employers to assist staff in financing cars without being left with the responsibility for a vehicle when an employee leaves the company. 

Quite simply, the employer pays the finance payments as part of your negotiated salary package. 

It can often be tax effective against fringe benefits tax as well as income tax. 

Fixed payments are made monthly.