Car Finance and Car Loans

Is this a car that you would be happy to drive for the next 5 years?

Don’t underestimate the significance of the car test drive. We recommend that you ask to test-drive the car under various road conditions. Taking a car on a test drive down hill with no traffic lights in sight, may well be the dealers idea of a dream test drive but this sort of test drive will not provide you the opportunity to take the car through its paces in a realistic manner.

Be sure to listen when you first start the engine, to make sure that its starts immediately and there are no unusual noises.

Apply the brakes regularly through out the test drive and feel and listen for sign of wearing that may indicate that further inspection may be required.

The body condition of a car can often provide a good indicator as to how well the car has been maintained. Look for signs like orange peel or rough and uneven painting that may indicate paint or panel repair. Don’t be afraid to ask if the car has had any repairs if you see any items that don’t appear genuine.

Underneath the car you can search for oil or fluid leaks as well as any wear and tear to the under body that could be related to off-road or irregular use of the car.

Make sure the car has a spare tyre in roadworthy condition and as obvious as it may be check to see that the jack and toolkit are with the car. Lift the internal car mats to check the condition of the original carpets and if the car is fitted with seat covers ask if they can be removed to ensure no damage to the original upholstery like cigarette burns or stains.

Have a listen to the car engine with the bonnet and listen for any obvious or unusual noises. Check the condition of the belts, hoses and fluid levels inside the battery. Check the colour of the engine and transmission oils, as these can both good indicators to suggest if the car has been well maintained.

Make sure all the cars doors open and close easily, and that handles and locks work well as making sure any electric powered windows and mirrors are in working order.

With all of the se checks out of the way, it’s important to complete your purchase by choosing the best car loan to meet your needs. If you would like to speak with a car loan consultant about arranging the best car loan or car lease for your needs, please call 1300 887 967 and we will be only too pleased to assist.

The South Australian Government has reduced rental duty rates applying to Hire Purchase
and Lease Agreements from 0.5%to 0.25% as from 01 July 2008.

In addition, a lower rate of mortgage duty applicable to Chattel Mortgage and Consumer
Loans will apply at a rate of 0.15%.

For the first $6,000 advance, the stamp duty is $10.00 and then $0.15 for each $100 over
the amount of $6,000.

All Madison Finance car finance and car loan agreements will be adjusted accordingly as of 1st July 2008 to reflect these new changes.

The chattel mortgage facility has grown in popularity in recent years. Much of this can be attributed to the introduction of the GST and they way the ATO consider the taxation treatment of various car finance options.

The chattel mortgage facility offers flexibility as you can either finance the full purchase price, or alternatively, you can include an upfront deposit or trade-in to reduce the repayments. You may also wish to include a residual or balloon payment at the end of the finance term to further reduce your monthly repayments.

The chattel mortgage is essentially an instrument that facilitates a Mortgage over goods (chattels) to be financed. For taxation purposes you can still benefit from claiming depreciation, running costs and interest paid, against your income as with a commercial hire purchase agreement. The main point of difference is that a chattel mortgage allows businesses to claim the full input tax credit from GST incurred expenses immediately (next BAS statement).

If you would like to discuss a chattel mortgage with a car finance consultant, please feel free to contact Madison Finance on 1300 887 967 to discuss your individual car loan needs.

Car finance can be arranged through a variety of suppliers including banks, credit unions, finance company’s, finance brokers and car dealerships.

Generally speaking there are no two application processes the same and each has its own methodology in processing and assessing your car loan application.

Madison Finance can provide on the spot conditional approval and loan documents can be prepared and emailed to you usually within four hours.

The first stage of the application process is to receive your Conditional Approval. When you submit your application, we can approve or decline your application based upon the information submitted by you and by undertaking some other enquiries about your credit history, employment etc.

Once you have been provided by Conditional Approval you are now ready to secure your new car.

After advising Madison Finance of the details of your new car, we can now prepare your loan agreement and email you the forms to read and sign all from the comfort of your own home or office.

Once the forms have been signed and verified by our settlements department, we will then proceed to pay the vendor and you can then arrange a suitable time to take delivery of your new car with the seller.

If you have any questions about the applying for car finance pre-approval, please contact us by telephone on 1300 887 967 or make an online enquiry.

Be sure not to overspend on your budget when purchasing your next car. Here are a few ideas on making sure you stay within your budget.

Research, Research, Research
Set your budget at the outset, but know how realistic that “deal” really is? Try a used car valuation from a car dealer or auction house or check online at sites like carsales.com.au, drive.com.au or redbook.com.au to gain a better understanding of the market value of the vehicle.

Don’t be in too much of a rush, don’t look at cars at night time or in the dark, in the rain, or if you are too cold, too wet or too busy to invest the time required to inspect the vehicle. We recommend to always take the car for a test drive, regardless of its age or condition. Always have a your mechanic or registered mechanical inspector check the car over and always inspect the underneath.

You can speak to a car finance consultant about your car loan needs by calling us or requesting a car finance quote.