We’ve come to rely on it for so many tasks in our life and work, especially in our motor vehicles. Tech has become king in so many sectors and motor vehicle manufacturer is making amazing advances with every new model launch. Manufacturers seem to be competing on how much new tech they incorporate into their ranges to improve safety, performance, comfort and customer appeal. But all that reliance on tech has created its crisis.
There is a global shortage of computer chips or semiconductors. A shortage that is reverberating through many areas of manufacturing including motor vehicles. Apart from tech giants, manufacturers such as Honda, BMW, Ford, Jaguar, Land Rover and Mitsubishi are just some of the big-name car makers that reportedly have been forced to slow, halt or scale back production.
What’s causing it? One cause is reportedly a drought in Taiwan. Taiwan is a major producer of semiconductor components, aka chips, that are needed to make a wide range of tech work. A drought? Yes, a lack of water because apparently water, or more specifically pure water, cleanses the componentry to make it fit for use. This drought is having far-reaching effects on many electronic industries.
So what impact could it have on your car buying plans? If you’re planning to buy one of the upcoming latest models, you may be in for a long wait. According to industry bodies, there are already delays in the Australian car market. What could happen? Could the shortage cause prices to rise in response to supply not meeting demand? Manufacturers competing for a limited supply of components? The outcomes are yet to play out and hopefully, the much-needed rain will come.
In the meantime, what can you do to secure cheap car finance and how can we assist you? Possible options include pre-ordering now so you’re first in line with the car of your choice that hits the local market that is of course if future orders are open. Or you could get in now for current models.
Vehicle Financing Options
To avoid FOMO, fear of missing out, getting in now and buying a new car at the current prices, and possibly even EOFY pricing, might be the answer. Fortunately, there is no such drought in terms of our cheap interest rate car finance. Interest rates across the board have been kept on hold by the RBA since November 2020 and it is expected that will remain the case for some time to come. However, some economic analysts do present a feasible case that lending rates in some sectors may rise earlier than currently indicated.
Buyers wanting to secure a new vehicle now and avoid any possible delivery delays can select from a comprehensive low rate car loan selection. Securing your finances ahead of time with a pre-approved loan allows buyers to confidently place an order and potentially quickly snap up vehicles that are in short supply.
Private Buyer Car Loans
Secured finance for cars is the most widely-used loan for those buying a new car for private use. This loan can be used for the purchase of all types of cars including SUVs, sedans, wagons, hatches, cab chassis, coupes convertibles and more.
Loans are available across the full price range from budget models to high-end luxury collections. Petrol, diesel, hybrid and electric vehicles are suited to a secured loan, with no difference in loan features based on the power source.
The format of a secured loan is essentially uncomplicated – the car is used as the security against the monies being loaned. The borrower then repays the loan to the lender in equal monthly instalments over a fixed loan term.
When arranging these loans for our customers, we ensure a fixed low-interest rate and a fixed loan term. That means our customers have fixed repayments which they do not have to address over the loan term, ‘fix’ their interest rate when the official cash rate changes or switch lenders to get a better deal. We source the cheapest deal upfront. Refer to our business car finance interest rates to see our cheap rates against what other lenders and banks are offering.
Business Car Loans
Businesses have several choices regarding finance and the benefits of each should be weighed up against the objectives of the business and the suitability of the business accounting method and strategy.
- Chattel Mortgage which is also known as Motor Vehicle Loan
- Car Finance Lease
- Car Hire Purchase or CHP for Vehicles
All have tax-deductible elements but for businesses looking to capitalise on the accelerated depreciation offered by temporary full expensing, Chattel Mortgage would be the most appropriate finance facility.
To see how your repayments may vary on the different finance products and for different vehicles, use our interest rate comparison chart.
Pre-approved Vehicle Finance
Pre-approved finance is available on all our loan products. This process simply involves applying for your loan before committing to a car purchase. Many buyers prefer this way of sourcing finance as it allows them the opportunity to know exactly how much they are approved for. It also allows buyers to immediately sign up for a purchase rather than having to inspect a vehicle and then go away to arrange their finances. A move that, in the light of possible vehicle shortages, could mean missing out.
So when the chips are down, turn to us for finance options to secure the car of your choice.
Contact 1300 000 003 to discuss your motor lending requirements.
DISCLAIMER: IN REGARD TO MISREPRESENTATIONS AND ERRORS CONTAINED IN THE MATERIAL AS PRESENTED, LIABILITY IS NOT ACCEPTED. THE DETAILS AND CONTENT IS PROVIDED FOR CAR BUYERS AND INDIVIDUALS AND BUSINESS SEEKING FINANCE PURELY AS GENERAL INFORMATION. THIS IS NOT PROVIDED AS THE ONLY SOURCE OF FINANCIAL INFORMATION. ANYONE THAT CONSIDERS THAT NEED FINANCIAL ADVICE ABOUT THEIR SPECIFIC REQUIREMENTS SHOULD SEEK THEIR OWN FINANCIAL ADVISOR.