Thinking of Buying a New Vehicle, here are some things to consider.
The car industry has changed quite substantially since Covid hit. It’s remarkable how our everyday mode of transport could be effected by the pandemic.
The impact has created a huge shortage of vehicles across the country due to supply coming from various parts of the world, in particular China. If you’re thinking of a new car for 2024, here are some great tips you need to consider.
Delivery of a new car can take anywhere from 3 to 9 months depending on the make and model. The used car market has increased in value due to the new car market being limited in stock. People in general are curious about moving to electric and hybrid cars due to the rising costs of petrol. A lot of people are becoming more and more aware of the environment and how our carbon footprint will affect future generations.
The government have recently introduced an Électric Car Discount Bill’ which means import tax and fringe benefits tax (FBT) will be removed on electric cars. For more information click here: https://www.aph.gov.au/Parliamentary_Business/Bills_LEGislation/Bills_Search_Results/Result?bId=r6876
At Jim’s Finance we have over 23 years experience in the vehicle purchasing and financing industry so we’re an invaluable resource if you’re looking at buying a new car. We have fleet contacts across the country so you can do the shopping from your desk or couch. Send us your details here and we will reach out to further discuss options for you.
Purchasing a Car & Interest Rates
How does finance work when it comes to purchasing a vehicle?
Not many people are aware that there are several different finance structures available to finance a new car. Buying a car outright is not a good investment – cars depreciate in value by about 15% every year. The trick is to make your vehicle as tax effective as possible.
If you’re a PAYG Employee, then a novated lease will provide around $3,000 in tax savings each year for most people and most vehicles. Alternatively, a consumer car loan is an option.
For small business owners, looking for commercial financing for a car, a chattel mortgage, maybe the most a cost-effective option.
What’s a good interest rate for a vehicle?
Rates are set by the financier based on the applicant’s credit profile. A good rate for a chattel mortgage is usually between 7.5% and 9.5%. For consumer car loans, rates will also vary significantly depending on the applicant’s credit profile. If you talk to a specialist in this area, they’ll be able to provide sound advice on what the best structure is for you or your business. It is also advisable to chat to your accountant too.
When is it a good idea to changeover your car?
On average, people tend to changeover their vehicle between 3 and 5 years depending on usage. Vehicles travelling over 40,000 km’s per year are considered to be high usage. It depends on the age of the car and if it’s costing you money every year. If it’s used for business purposes, you certainly want a reliable vehicle that’s rarely off the road, hence a newer model makes good business sense.
You can read more about vehicle finance options here, or don’t hesitate to reach out to us at Jim’s Financial Services on 131 546 or via our online form.
