What is a low doc car loan?
When someone is self-employed or runs a small business, obtaining a car loan can be made difficult by red tape. The paperwork needed for car or equipment finance is extensive, and it’s generally more difficult to qualify for traditional loans. A low doc car loan negates the need for this paperwork.
Anyone who is missing documents like tax returns or profit and loss statements, or simply don’t feel comfortable sharing said documents with their bank, will find a low doc car loan as the ideal solution. At AAA we work with a panel of over 23 lenders, which means a wide range of different car loan options to suit a diverse group of situations.
Benefits of a low doc car loan
There are many specific benefits of a low doc car loan, including the following:
- GST and other tax breaks
- Easy repayment structures
- Loan terms lasting up to 7 years
- Balloon payment
- Fixed interest rates
Read on to find out exactly how these benefits can apply to your purchase.
Boosts for business
Business owners who obtain car finance with a low doc car loan are able to claim tax deductions and GST benefits if they are an ABN holder. Anyone in this situation may be able to claim the interest on the car loan as tax-deductible. Businesses registered for GST can also claim the GST portion within the purchase price of a vehicle in their next BAS.
Many businesses don’t have their finances up to date, but accessing finance through AAA is one fast way of getting facts and figures up to speed.
Who else can benefit
Businesses that have struggled to secure a car loan in the past will find it much easier by working with AAA’s low doc car loan system. It removes so much of the red tape that prevents self-employed Australians, business owners, or those without traditional income streams from accessing finance with many lenders.
By offering options like chattel mortgages, applicants also have the option of leveraging a vehicle against their financing, offering them extra security. And with a balloon payment scheme, borrowers can secure a repayment plan that allows them to live life as they wish and pay off a larger amount of the principal at the end of the loan period, rather than being constricted by more conventional loan setups. This balloon amount can even be refinanced at the end of the low doc car loan term, allowing you even more financial flexibility.
Know how much you pay
Contacting a AAA Finance specialist is an excellent first step to obtaining a desired vehicle. But for those with even just a passing interest, our car loan calculator is on hand to provide aid in determining exactly what is within reach.
By gauging the amount you wish to borrow, the term of the low doc car loan and an approximate interest rate, this calculator will tell you just how much you are likely to be paying each month. It’s an important tool for planning ahead and making sure you get a car loan that perfectly suits your financial situation.
Keep it insured
Comprehensive car insurance is a requirement of all car loan financiers, and AAA Finance offers a range of car insurance products. These are essential when taking out a low doc car loan, and protect both your vehicle and the money you borrow.
Other insurance products that can protect your car include extended warranties, as well as and tyre and rim insurance. Whether the problem is big or small, there is likely a type of cover available to make sure your low doc car loan and subsequent driving adventures go off without a hitch.
Others include loan protection insurance, which keeps you safe against an unforeseeable loss of income, which could be due to accident or illness. Gap or shortfall insurance is also available, which protects the ‘gap’ between a low or no doc car loan debt and the significant payout that occurs in the case of the write-off or theft of your vehicle.
These types of insurance don’t just protect against those specific situations, but they will also be very useful for protecting your credit rating in the unlikely event that any of the situations occur.
Get in touch today
With so many benefits available, the no or low doc car loan is a must-try for anyone who finds themselves in a situation where traditional lending is out of reach. If this is something that you would like to find out more about, get in touch with AAA Finance today. We can even organise loan pre-approval for you now, it’s that fast and easy.
*The Comparison Rate is calculated on a Secured Loan of $30,000 fixed for a term of 5 years, effective 12/06/2016 and subject to change. WARNING: The Comparison Rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different comparison rate.