FAQ

The condition and age of the goods are taken into consideration when a lender assesses any loan application. They also focus on the credit profile of the individual and the person’s capacity to repay the amount of money being requested. All these aspects will contribute to their overall approval of a lending application and to any conditions or exceptions applied by the lender. If the price of used goods and hence the amount requested is not considered as reflective of value and suitable to the full purchase price being included, it may not be approved. If a lender considers an individual at high risk of defaulting on payments for a loan of that quantity it may not be approved. In these instances the overall amount would need to be reduced and as such the full purchase price not included in the finances.

Yes. The conditions, features and benefits of lending in this respect are the same regardless of whether the entire purchase price or a percentage of the purchase price is included. With personal loans, the option exists in all financing to make extra payments. Making additional payments over and above the scheduled repayments can result in less interest in total being paid and paid out earlier than the scheduled term. For lending with a fixed interest rate, this attracts minimal break fees and for variable interest rates, no break fees apply. Business finance contracts will have varying conditions around making extra payments and paying out financials early. Talks with the lender are recommended to seek detail on fees for paying out early.

These two concepts are different. Many manufacturers and dealers will request a down payment from buyers as goods need to be manufactured to order and they will want confirmation that the sale will proceed before they get started. This is different from what the lender requested an upfront payment in regard to financing. The concept from the lender perspective refers to the full amount of the purchase price being included in the contract. Buyers can discuss this with their seller and request that their down payment is refunded when the lender settles and pays the seller. This is quite a standard practice across many areas of consumer and business finance.

In general terms, this option is available across all loan types and that would include many loan applicants. But lenders will assess each application based on the applicant’s credit profile and capacity to repay and the condition of the goods being purchased. Where a lender deems the total amount requested as not acceptable under their guidelines for that individual, they may request the total amount be reduced in order to approve the finance. In that example, the buyer would need to reduce the lending amount by paying a deposit to the seller. To be eligible for consumer finance, a person needs to be over the age of 18, be employed or have a source of income and meet the lender application form criteria. If they meet that criteria, the option should be available to them to borrow the full amount of the purchase price.

The terms and conditions of a contract are not directly affected by the amount of the loan as such. Loan terms can be from 1 to 7 years. These are applicable generally regardless of what is included in the amount. By including the total purchase price in the total is higher than if a deposit was paid. Over the same loan term, the repayment would be higher and more interest in total payable. A shorter term increases the monthly repayments but reduces the total interest payable and the buyer owns the goods outright much sooner. By using a financial calculator you can easily see how the loan term affects repayments.

This is not a separate type of loan but an option for including the full cost of the purchase in the finance deal. This is available across the full range of lending, subject to individual lender approvals. The full purchase price can be included for secured and unsecured personal loans as well as for the selection of business finance products. It is purely a personal decision if the buyer chooses to apply for this option or to opt for a lesser loan amount by paying a deposit to the seller to reduce the amount requested.

The concept refers primarily to the total purchase price of the goods from the seller. However, additional items may be included in the loan, subject to lender approval. The extras may be optional packages offered by some manufacturers with some models such as upgrades to off-road capabilities; accessories such as awnings or extrasolar panels; additional grey water or freshwater tanks; and other options. To be included, the extras need to be purchased concurrently with the main purchase, preferably, but not essentially, from the same supplier. Optional accessories purchased after-purchase and after the lending is finalised would not be able to be included.

No. The interest rate advertised across the different loan types in this category are the same regardless of any pre-payment, deposit or upfront monies paid. The interest rate on different categories is established by individual lenders based on their preparedness to extend credit to that sector. The rates advertised by lenders are typically the best available and for applicants with good credit. Rates are offered based on an assessment of the applicant and the goods being acquired. In some cases, lenders may request the total lending amount requested be reduced or apply conditions, but the interest rate would not be affected by deposits paid.