Car Loans Australia
June 24, 2009 by admin
Car loans are usually taken when a person intends to purchase a new or a pre-owned vehicle. Car Loans fall under the secured loan category and can be of two types – New Car Loan and Used Car Loan. Online car loan is a recent addition to the existing category of loan product options offered by banks across the world. Australian citizens have the option to choose between HSBC and ANZ Bank amongst others to secure the best offer on online car loans, as both these banks offer very attractive deals in the online car loan product category.
While going for an online car loan (be it new or used car loan), a person has to first undertake a careful inspection of the terms and conditions associated with it. The principal advantage in an online car loan application is to avail benefits of no credit or background verification, immediate approval (or denial) and a quick disbursal window of 48-72 hours, thereby facilitating quick possession of the vehicle.
To start with, the Australian citizen has to first decide on which Bank he wants to apply the online car loan from. In the normal course of operations, the application forms are transmitted through to the bank’s server by way of an encrypted web page for security reasons. The loan applicant needs to carefully go through the application form and complete all requested personal and/or financial information.
Before an Australian citizen actually fills up the online car loan application form he should compare the rates of interest being charged by different Banks. Online car loans, like other online loans, usually come at 1 to 2 per cent higher interest rates than conventional or offline loans.
Most Banks who offer online car loan options have some or the other between-the-line clause in Loan agreement. Hidden terms and conditions should be very carefully scrutinized before an Australian citizen finalizes to proceed with any particular Bank, for an online car loan application.
Once these checks and inspections are performed, the Australian citizen can apply for his loan. Unless there is no major discrepancy in the applicant’s details for example his income does not qualify or make him eligible for such category of loans, approval takes a maximum of 24-48 hours and thereafter, within the next couple of working days, the loan applicant can actually secure possession of his vehicle.
A recently released World Bank Credits and Lending report shows that, online car loan as a percentage of total value of car loans disbursed in Australian economy works out to almost 23 per cent. This proves that approximately one out of every four car loan products sold in Australia is an online loan.
