So you’re ready to buy a new car…great!

Before applying for a vehicle loan there are some items you need to have ready to help speed the application process.

1. Certified and current drivers licence.

2. Two most recent payslips if PAYG or two recent tax returns if self-employed.

3. Front page of the most recent bank statement of the account the repayments will be debited from.

4. Three years employment and residential history.

5. Two references (including their full name, address, contact number and relationship with you).

6. Three months bank statements for the account your salary goes into.

7. A monthly total for your living expenses.


When applying for a vehicle loan you have a choice between either 1 to 7 year as a loan term. However, this will depend on the age of the vehicle you’re wanting to purchase, older the age of the vehicle the lower the term can be.
Example: A new vehicle could choose anywhere between 1 to 7 years. A used vehicle that is 2 years old could choose between 1 to 7 years. A used vehicle that is 5 years old could choose between 1 to 5 years.
The max age of a vehicle when applying for vehicle loans is no more than 7 years.
A balloon payment is a lump sum owed to the lender at the end of a loan term after all regular monthly/fortnightly repayments have been made. This allows you to repay only part of the principal of your loan over its term, reducing your monthly repayments in a trade-off for owing the lender a one lump sum at the end of the loan term.
An example of  a Balloon repayment is: let’s say you buy a new car and borrow $55,000 over four years and choose to have a $10,000 balloon payment on your loan. Your monthly/fortnightly repayments will be lower than if you had no balloon, however you will still owe the lender $10,000 at the end of the four-year term which would be your final repayment.
A trade-in car is when you have a vehicle that you offer to a car dealership in a trade-off for credit/dollars toward the price of another vehicle that you would like to purchase. Generally, a trade-in can be any vehicle that has value, but the amount that you get for the trade-in can vary.
The trade-in  is typically based on the market value of your vehicle (the amount it would sell for on the open market).
The trade-in value can vary depending on a number of factors, such as the popularity of the make and model, how many of the same car the dealer already has on the lot, and the age and condition of your vehicle when you bring it in to trade.

Loans: Secured Vs. Unsecured Vs. Peer to Peer

Secured Loan

With secured loans you offer an asset (the vehicle), as security for the loan.

If you don’t make repayments, the credit provider can repossess and sell your asset to get the outstanding amount paid.

The age of your vehicle will affect the resale value and if sold for less than what is remaining on the loan, you will still have to pay the credit provider the difference.

Unsecured Loan

With unsecured loans you don’t need to offer an asset as security however you may not be able to borrow as much.

Interest rates are also usually higher for unsecured loans because the credit provider is taking a risk.

If you don’t repay the loan, the credit provider can take you to court to recover its money.

Peer-to-Peer Loan

You might be able to get a car loan without going through a traditional lender such as a bank, building society or credit union. Peer to Peer lenders have investors who can be individuals or companies and that is where the money comes from.

People who invest through this type of lending are buying a financial product, typically a managed investment product while borrowers are taking out a loan that is repaid over time, with interest.

Don't let financial hurdles stand between you and the exhilarating experience of driving off in the perfect vehicle. At Ascend we're here to make your dreams a reality!


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