Low doc car loans and no doc loans are meant to help self employed individuals and small business owners get loans with ease. These loans are ideal for people who can afford loans but cannot give income verification documents such as tax returns. There are many lenders who offer low doc loans in Australia and listed below are a few things buyers should know about before opting for one such loan.
Low doc loans for cars are offered for various commercial vehicle products such as Chattel mortgage and commercial hire purchase. There are various factors that lenders take into consideration when they decide how much interest rate to charge for such loans. However, the fixed interest rates charged for these loans can be as less as 7.65%. Both property owners and non property owners can apply for these loans.
To qualify for such loans, the buyer has to be a permanent Australian resident. In addition, he should be a minimum of 18 or 21 years old. In regards to the vehicle, the car has to be purchased from a licensed dealer and most lenders have their own list of authorized dealers. Purchase cars from private dealers and they have to follow the guidelines to get a loan. This means that buyers cannot Lenders may also fix maximum loan amounts up to $70,000 and minimum loan amounts in some cases. Buyers can get both new and used vehicles through these loans; however used vehicles can be a maximum of 4 years old. Other eligibility requirements include, the vehicle should have an ABN and should be registered for a minimum of 24 months by the buyer. In most cases, lenders only offer low doc and no doc loans to buyers who have a good credit history and applications of buyers with credit problems are not approved.
Buyers can either opt for a floating or a fixed interest rate depending on their requirements. Buyers who are interested in reducing monthly payments can consider opting for paying balloons or residual value of the car. In addition, a dealer tax invoice, an application form and certain other documents may be required to get a low docs loan for cars. Applying for these loans is simple and to apply, once can contact a lender by visiting his online website. The main benefits of opting for online loans are the comparatively lower interest rates and access to various online calculation tools.
It is important to note that although low doc car loans are offered to people who cannot submit tax return documents and other income verification proofs, in most cases BAS and trading statements may have to be submitted. Some lenders also accept accountants’ letters for such loans.