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Car Loans For Non-Residents In Australia

Car Loans For Non-Residents In Australia

Car Loans For Non-Residents In Australia

When you are living in Australia for an extended period, you will often need a car and the cost of hiring one for a long period of time will often be very expensive, and at the end of hiring this car you have nothing to show for the money you have spent. You can try public transport, taxis or uber however they can be inconvenient and costly as well.

The other solution for most non-residents that intend to stay here for many years/have the intention to become a permanent resident in Australia is getting a car loan. To a visa holder, a car loan can seem rather difficult to obtain as many finance companies require their customers to be either citizens of Australia or a permanent resident of Australia in order to lend money to. The problem you are going to have is convincing a lender to lend you the money when you cannot prove that you are either going to stay in the country long enough to pay off the loan or pay it off before you leave.

However, that is not the be all end all, in fact there are some finance companies that will lend to customers on certain visas. Please see below to view a full list of visas’ that the lenders on our lending panel will accept for a customer to be eligible for a car loan.

To qualify for a car loan when in Australian on a visa, you must meet the below criteria and hold one of the visa’s below, if the visa you are currently holding is not listed below then unfortunately we will not be able to assist you.

Lending Criteria

  1. Must hold a current valid visa that is listed below
  2. Visa must have a period of over 3 years left before it runs out
  3. Loan terms are a minimum of 3 years
  4. Must be currently employed for a period of 6 months or more
  5. Previous bad credit is acceptable but limited
  6. The size of the loan will be limited to your overall profile and ability to pay.

Acceptable Visa’s

Skilled Work Visas                                         

  • 457 – Skilled Workers Visa (Subclass 457) 4yrs
  • (Occupation must be listed on MLTSSL) Max Age 45 Min Salary $53,900GPA
  • 475 – Skilled Regional Sponsored Visa (Subclass 475)
  • 186 – Employee Nominated Scheme (Subclass 186)
  • 187 – Regional Sponsored Migration Scheme (subclass 187)
  • 189 – Skilled Independent Visa (subclass 189) (EOI TESTED)                                                     
  • 885 – Skilled Independent Visa (Subclass 885)
  • 190 – Skilled Nominated Visa (subclass 190) (EOI TESTED)                                                     
  • 489 – Skilled Regional Visa (Subclass 489) (Government Nominated)
  • 175 – Skilled Independent Visa (Subclass 175)
  • 176 – Skilled Sponsored Visa (Subclass 176)
  • 887 – Skilled Regional Visa (Subclass 887)

Partnered and Family Visas                         

  • 801 – Permanent Partner Visa (Resident) (Subclass 801)
  • 100 – Permanent Partner Visa (Migrant)(Subclass 100)
  • 143 – Contributory Parent Visa (Subclass 143)
  • 184 – Contributory Aged Parent Visa (Subclass 864)

Protection Visa’s                                                                                              

  • 866 – Protection Visa (Subclass 866)
  • 790 – Safe Haven Enterprise Visa (Subclass 790)
  • 200 – Refugee Visa (Subclass 200)
  • 202 – Global Special Humanitarian (Subclass 202)
  • 785 – Temporary Protection Visa (Subclass 785)

Permanent Resident Visas                                                                                    

  • 155 – Resident Return Visa (Subclass 155)
  • 157 – Return Resident Visa (Subclass 157)

Business Innovation Visas                                                                             

  • 188 – Business Innovation and Investment Visa (Subclass 188)
  • 888 – Business Innovation and Investment Visa (Subclass 888)

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Uber Car Loans

Uber Car Loans

Uber Car Loans

From bursting onto the transportation scene as an illegal ridesharing business to evolving and progressing into the highly successful and lucrative ridesharing business it is today, there is no denying that Uber has become exceedingly popular, and Uber has left its mark on the transportation industry as we know it. Uber has swept our nation giving people a cheaper economical alternative to the taxi industry, of which has caused outrage amongst the taxi drivers in the industry.

Uber is also extremely accessible, almost any person can be an Uber driver providing they meet the requirements set out by Uber which are simplistic and easy to meet. Another benefit of Uber opposed to taxi driving is the cost of a taxi driving license which are quite expensive. Uber drivers on the other hand do not require a taxi license, which further adds to Uber’s accessibility. With all that in mind, you are left with the question of what car should you choose to begin your Uber career. Perhaps you are an established Uber driver, then it may be time for an upgrade. Regardless of whether you are just starting or upgrading, choosing a vehicle can be quite difficult, after all as an Uber driver, your car is your office and you are going to be spending a lot of time in it, therefore making the correct choice is imperative.

Below is the list of requirements for an Uber X Vehicle.

Uber X Vehicle Requirements

  • Vehicle must be in excellent working condition
  • No older than 10 years old
  • Must be able to seat 4 passengers and the driver
  • Must be able to pass a Redbook Inspection
  • Vehicle must be registered relative to your state E.g. a Victorian Uber driver must have their registered in Victoria
  • Vehicle must be free from cosmetic damage and commercial branding
  • Vehicle cannot be a taxi, government, branded or rebuilt vehicle

As an Uber driver looking at purchasing a new vehicle there also some other factors you need to take into consideration that were not listed above.

Safety – Safety is by far and away the most important feature to a car to both you and your customers. Whilst you are a safe driver, other drivers may not be, so having a car that can be prepared for the unexpected will be a wise choice.

Comfortability – As previously stated, your car is going to be your new office, so you want something that you are comfortable sitting behind the wheel of the whole day. You are also going to want your customers to have enough space at the back and possibly some space for any potential luggage they take.

Operating costs – Fuel efficiency, insurance costs and servicing are some important costs to keep in mind, a fuel-efficient vehicle is ideal, so fuel costs don’t take a chunk out of your wallet. Servicing and insurance costs tend to be higher for the “luxury” brands such as your BMW’s and Mercedes so it may be best to avoid these if you are tighter on budget

Vehicle Price – A common misconception is that you must spend a fortune on getting a brand spanker to keep up to date however that is not the case. See below for some affordable 2018 options that we recommend you look at.

Toyota Camry Ascent Hybrid 2018 – $29,990

Toyota is a Japanese powerhouse in the Australian Car Market, bringing us reliable cars like the Corolla which is well known for being practical and easy to drive, the Camry Ascent Hybrid is no different. It is currently a popular choice across taxi companies and the Australian public alike, this is not without good reason. The Camry feels just as nice and easy to drive as the Corolla, if not better, however unlike the corolla, the Camry is more spacious allowing for more leg room for both the driver and the customers. The Camry is also nice and quiet at lower speeds thanks to its hybrid drivetrain allowing your customers to have a conversation without competing with the noise of an engine. When you are buying a hybrid, fuel efficiency will be at the forefront of your mind, and the Camry is the most efficient out of the cars on this list. The Camry also features a five-star ANCAP Safety Rating which will give you and your passengers peace of mind.

Mitsubishi Outlander 2018 ES 7-Seater – Starting from $30,990

If you have a larger family and planning to only do Uber on the side, the Mitsubishi Outlander might be the car for you. The Outlander is a relatively flexible car as although it is five-seater SUV, it can transform into a 7-seater, perfect for when the unexpected happens. The back 2 seats are not the spacious under the sun however it is more than serviceable for children, adults will still fit in the back but not as comfortably. The Outlander has Apple CarPlay and Android Auto which are standard across the range, which is a nice touch, so you can use your favorite music streaming app such as Spotify or use your own maps app over the cars sat nav. The Outlander and the Camry share one major benefit, the safety rating. The entire series of Outlanders were awarded a five-star ANCAP Safety Rating when they were tested in 2014. 

Ford Mondeo Titanium Wagon 2018 – starting from $33,190

The Ford Mondeo is a car that not a lot of people have heard of, when was the last time you remember this car show up on a Ford Ad on TV? The Mondeo is a little bit more expensive then the previous models listed in this article, but this is affordable luxury that you and your clients will love. The rear seats are both comfortable and have plenty of legroom. The rear seats are also quite spacious so having 3 adults in the back is not a problem. Safety is also not a problem as the Mondeo shares the same five-star ANCAP safety rating that the aforementioned Outlander and Camry have. The Australian public might still be feeling a sting of sadness and disappointment after the end of the Ford Falcon dynasty, the Ford Mondeo may just be the replacement that not only we are looking for but also may be your next uber car.

You will notice some things in common with the above cars, they are all roomy and spacious. They are all fuel efficient and most importantly they are all safe. All of which are extremely important when it comes to selecting not only a car in general, but even more so when it comes to getting an car for Uber.

So, you now know what the requirements are for an Uber X vehicle, you know what to look out for in a car and you have some examples above of what to purchase there is only one thing left to do, buy the car. That is where Auto Link Finance comes in, we can help you achieve a commercial car loan that is best suited towards your own personal circumstances.  Don’t put off getting your car any longer, call us on 03 9368 3298 or apply now to get your application started today.

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Finance Lease

Finance Lease

Finance Lease

Finance Lease & What You Need To Know!

A Finance Lease is a commercial finance product, which enables the customer to have the use of a car or commercial vehicle and the benefits of ownership, while the financier retains actual ownership of the vehicle.

How does a Finance Lease work?

The financier purchases the vehicle on behalf of the customer, the financier then leases the vehicle back to the customer, the customer pays a fixed monthly lease rental for the term of the lease. At the end of the lease the customer can either pay a residual value (being the final instalment) on the lease and take ownership of the car, should you choose to own it, otherwise you can trade it and upgrade, or re-finance the residual if you don’t have the funds to buy it and continue the lease.

Benefits of a Finance Lease

  •  Flexible contract terms ranging from 1 to 5 years months
  •  Fixed interest rate for the term of the lease
  • Fixed monthly lease rentals
  • Costs are known in advance
  • A residual is applied to a lease, lowering monthly payments
  • Tax deductions are available when the vehicle is used for business purposes
  • As the GST contained in the car’s purchase price is claimed back by the financier, only the vehicle’s price exclusive of GST is financed, lowering monthly payments
  • Ability to make limited advance lease payments for tax deduction or cash-flow purposes
  • The lease is secured against the vehicle, providing lower interest rates

 Who does a Finance Lease suit?

 Finance Leasing is suitable for companies, partnerships, sole traders and individuals where the leased vehicle is used for income producing purposes. It is also ideal for employees who want to salary package a vehicle through a Novated Lease as part of their remuneration..

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Hire Purchase

Hire Purchase

Hire Purchase

Hire Purchase & What You Need To Know!

A Commercial Hire Purchase (CHP) is a commercial finance product where the customer hires the vehicle from the financier for a fixed monthly repayment over a set period. Commercial Hire Purchase can also be known as a Corporate Hire Purchase, Hire Purchase or Offer To Hire, and is often abbreviated as CHP or HP.

How does a Hire Purchase work?

Under a Commercial Hire Purchase arrangement, the financier agrees to purchase the car on behalf of the customer, and then hire it back to them over a set period, generally between 1 & 5 years. The customer has the use of the vehicle for the term of the contract but is not the owner of the vehicle, the lender is. At the end of the contract term when the total price of the vehicle (minus any balloon) and the interest charges have been paid in full, the customer takes ownership of the car.

Benefits of a Commercial Hire Purchase

  • Flexible contract terms ranging from 1 to 5 years
  • Balloon value (balloon or final instalment) may be placed on contract
  • Fixed interest rate for the term of the loan
  • Monthly repayments are fixed
  • Costs are known in advance
  • Deposit (either cash or trade-in) may be used
  • A tax deduction is available when the vehicle is used for business purposes
  • GST is not charged on the monthly rental or balloon payment (but is charged on fees and interest)
  • Customers registered for GST can claim the GST in the vehicle price, plus fees and interest
  • The finance is secured against the vehicle, allowing lower interest rates

 Who does a Commercial Hire Purchase suit?

A Commercial Hire Purchase may be suitable for business (including companies, partnerships and sole traders, and some individuals) who account for GST on either an Accruals or Cash basis, the goods must be used predominantly for business use, which means greater than 50% Prior to 1 July 2012, Commercial Hire Purchase was commonly used by individuals receiving a car allowance and using their vehicle predominantly for business purposes, which means greater than 50%. However, due to changes to the GST treatment of CHP that came into effect on 1 July 2012 a CHP is now significantly less attractive in this circumstance, and employees with a car allowance may wish to consider other finance options.

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Chattel Mortgages

Chattel Mortgages

Chattel Mortgages

Chattel Mortgages & What You Need To Know!

A Chattel Mortgage is a commercial finance product where the customer takes ownership of the vehicle (chattel) at the time of purchase.

How does a Chattel Mortgage Work?

Under a Chattel Mortgage, the financier advances funds to the customer to purchase a vehicle, and the customer takes ownership of the vehicle (chattel) at the time of purchase. The financier then takes a “mortgage” over the vehicle as security for the loan, by registering their interest over it with the PPSR (personal properties security register). Once the contract is completed, the security interest is removed giving the customer clear title to the vehicle

Benefits of a Chattel Mortgage

  • Flexible contract terms ranging from 1 to 5 years
  • A balloon value can be applied to the contract enabling the monthly repayments to be tailored to your budget
  • Fixed interest rates for the loan term
  • Monthly repayments are also fixed
  • Costs are known in advance
  • Deposit (either cash or trade-in) may be used
  • A tax deduction is available when the vehicle is used for business purposes
  • A customer who is registered for GST can claim the GST contained in the vehicle price upfront as an input credit on their next Business Activity Statement (BAS)
  • No GST is charged on the monthly repayment or the contract balloon amount
  • The finance is secured against the vehicle, providing lower interest rates

 Who does a Chattel Mortgage suit?

A Chattel Mortgage is suitable for those companies, partnerships and sole traders who use the cash method of accounting (they record business income and expenses as and when they occur) as it allows them to claim the GST in the vehicle’s price up-front.

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Getting a Car Loan With Defaults

Getting a Car Loan With Defaults

Getting a Car Loan With Defaults

Getting a car loan with defaults/judgements
Getting finance once you have had defaults/judgements is very achievable and yes you can, but isn’t easy as most people think, why you might ask, because there are a lot of various scenarios that must be considered that can either get you approved or declined, its not as straight forward as having bad credit, applying for a loan and getting approved.
Everyone’s circumstances are different, there are various types of defaults and court judgments, some are accepted, and some are not accepted, in this article we are going to try and give you a better understanding of this and provide you with some important information on what will help/increase your chances of being more successful when applying for a car loan with a bad credit history.
When applying for a second chance car loan, there are a few things that a lender must consider when assessing an application which will make all the difference on a successful outcome or not, these are listed below.

Your check list for a successful outcome

1. Employment
You must be employed in your current job for at least 3 months, of course the longer you have been in your current job the better it is.

2. Current financial position
Your current financial position and the last 6 months, a lender is going to look at this to see that you are now and for the last 6 months in a good financial position and you are not currently and for the last 6 months going through any financial hardship, if you are then they won’t give you a loan, its common sense don’t you think.

3. Current debts
Current debts/loans you currently have must have a perfect payment history for the last 6 months only, if you are missing payments on any current commitments, then this will display that you are finding it hard to manage your current commitments and adding another loan to that list is not financially viable, and you will get declined.

4. Banking conduct/bank statements
Bank statements are a compulsory request from all second chance lenders, and they will need them for the last 3 months and in some cases the last 6 or 12 months, but in almost all cases they only require the last 3 months, the purpose of this is for a few reason listed below.
They will look to see that your pay goes into your bank account and calculate your average income over the last 3 months.
They will look to see that all liabilities have been disclosed on your application to ensure that they have all been allowed as part of their serviceability calculations and you can afford the loan you are applying for.
They will look to see that you are not over drawing your bank account on a regular basis, if you are then this will display that you are currently struggling with the financial commitments you currently have and providing you with a loan will not be viable and you will be declined.
They will also look to see that you are not dishonoring any payments with current debts you are paying off, if they see multiple dishonors here then you will also be declined, the odd exception to this maybe if you have had one or 2 dishonors with a very good reason and the payments were made up immediately then this maybe ok but will be looked at on a case by case basis only.
So, as you can see bank statements are not only compulsory, but they play a very, very important part of a lenders overall assessment when considering someone for a second chance car loan.

5. Pay slips/income
Pay slips are also required and are compulsory, a lender will always request your last 2 pay slips no more than 30 days old.
they must be proper pay slips and not hand-written pay slips, if you don’t get pay slips then they will require a letter from you employer on there letter head (proper business letter head) which will state your term of employment, gross income, net income, year to date earnings, your title and your position such as full time, casual or part time etc.
pay slips are also matched against the deposits going into your bank account for authenticity as well.
Your pay must go into your bank account, if it doesn’t and you get paid cash, then it is almost impossible for a second chance lender to consider your application for a loan, in some case they may want a recent tax return and ATO notice of assessment.
One of the most common questions a lot of people wonder about when considering to apply for a second chance car loan, is do defaults need to be paid, unpaid, on a payment arrangement, how many can I have before it’s to many, and how old do they need to be before I can apply, below we are to try to go over this, however these will be some examples and do not represent a guarantee nor does it suggest that you may me declined as they will all be looked at a case by case basis

Types Of defaults/Judgements

1. Finance defaults/Judgements

  • Pay day lender loans: these types of defaults would need to be at least 6 months old and, in some cases, they would need to either be paid or under a payment arrangement for a period longer than 6 months depending on the size of the default & how many you have.
  • Personal loans: these types of defaults would need to be at least 6 months old and, in some cases, they would need to either be paid or under a payment arrangement for a period longer than 6 months depending on the size of the default & how many you have.
    Credit cards: these types of defaults would need to be at least 6 months old and, in some cases, they would need to either be paid or under a payment arrangement for a period longer than 6 months depending on the size of the default & how many you have.
  • Mortgage: mortgage defaults are very difficult to assist with, these would have to be paid in full, however if it is a small amount for example under $10,000 and has been under a payment arrangement for a period of 6 months or more, then we may still be able to help.
  • Car loans: car loan defaults are one of the worst type of defaults you can have, in most cases these type of defaults need to be paid or at least on a payment arrangement for a period of 12 months or more, and they would need to be more than 12 months old.
  • Rental contracts of any kind: these types of defaults would need to be at least 6 months old and, in some cases, they would need to either be paid or under a payment arrangement for a period longer than 6 months depending on the size of the default & how many you have.

As you can see financial type of defaults need to be at least 6 months or more old, the older they are the better it is and the smaller the amount is the better it is as well, it is always best to check with us or apply for our free credit assessment, this will help determine what we can do for you, and if we cant help, then we can help you sort out a plan that will give you a chance down the track in getting a car loan based on your individual circumstances.

2. Utility defaults/Judgements

  • Gas bill
  • Electricity bill
  • Council rates
  • Water rates

The above utility defaults/Judgements are fine regardless if they are paid or unpaid as long as they are more than 3 months old, however this is also not a guarantee as it would depend on your overall profile and best that you apply for our free credit assessment to see what we can do for you.

3. Telecommunication defaults/Judgements

  • Mobile phone bill/plan
  • Home phone account
  • Internet bill
  • Foxtel

The above telecommunication defaults/judgements are also fine regardless if they are paid or unpaid as long as they are more than 3 months old, however this is also not a guarantee as it would depend on your overall profile and best that you apply for our free credit assessment to see what we can do for you.
How many defaults/judgements can you have?
The amount of defaults/judgements you can have is really depended on the size, type and age of the default, generally more than 5 starts to become a problem, more than 10 is definitely going to be very hard to get a loan at all, however once again it is best to apply for our free credit assessment to find out as everyone’s personal circumstance/profile is different.

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