Summer is here! Is it time for a Jet Ski loan?

With the weather starting to heat up in Australia, is to time to buy that Jet Ski you’ve been wanting to purchase for a while now? Fun weekends with friends and family, freedom on the water, adrenaline rushing through the veins. What are you waiting for?

Now is the perfect time to buy a Jet Ski and On Road Finance can help you along the way.

The Benefits Of Owning A Jet Ski

In case you needed more convincing, there are more benefits to owning a Jet Ski than just having fun.

  • It’s perfect for solo or couple adventures making it ideal for a quick getaway on the waters.
  • Jet Skis are quite cheap to buy. You could purchase a brand new jet ski from as low as $6000.
  • It’s easier to maneuver than a boat. Jet Skis also require smaller trailers, meaning you don’t need an SUV to tow it, a sedan will do the job!
  • You save money on fuel. Since Jet Skis are light and small, they require less fuel to propel them forward and are far cheaper to tow.
  • Jet Skis fit easily in your garage. Unlike a boat, storage of a Jet Ski is nothing to worry about.
  • It’s great for exercise! You burn a lot of calories riding a Jet Ski. The energy required in maneuvering and balancing the vessel helps strengthen the muscles in your core, arms and legs.

Your Jet Ski Finance Options

There are two options for financing a Jet Ski purchase. A secured Jet Ski loan or a personal loan.

A Secured Jet Ski Loan is a finance product where the lender funds your purchase of a jet ski and secures the loan against the vessel. Also known as a consumer loan, a secured Jet Ski loan is the most popular option for most of our customers. This is due to the competitive rates and repayments compared to personal loans. The customer takes ownership of the Jet Ski at the time of purchase and the lender takes an interest in the vessel as security for the loan. Once the contract has been completed, the lender lifts their interest in the Jet Ski, giving the customer clear title.

A personal loan is your typical type of unsecured loan, where the lender will provide you with the funds to make a purchase of your liking. On Road Finance customers prefer a personal loan when they want to borrow a specific amount of money to use on Jet Ski purchases, repay the loan faster with minimal penalty fees or even help consolidate other debt on top of their Jet Ski purchase.

To apply for a Jet Ski loan today, please submit an online finance application or contact our team of brokers on 1300 518 580.

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Insurance Options When Financing A Car

car accidentHere’s a question for you – if you were involved in a horrible accident, or if your vehicle broke down and required expensive repairs, or if you were to suffer unexpected financial hardship, would you be able to meet your financial responsibilities and continue making finance repayments?

For most people, the answer is no.

Fortunately, On Road Finance doesn’t only provide finance options for our clients; we also assist with insurance and warranties! This blog explains each of the insurance products and how it may benefit you.

Comprehensive Insurance

Comprehensive insurance is compulsory by law if you take out finance on a secured vehicle.

Also known as “full insurance”, comprehensive insurance is the highest level of protection you can get for your vehicle. The insurance covers you in the unfortunate and unexpected events like accidents, fire, theft, hail damage, flood damage, vandalism and more.

Extended Warranty

New vehicles come with manufacturer’s warranty as required by Australian law. These manufacturer warranties typically expire after 3 years, but sometimes up to 7 years, depending on the asset type and manufacturer.

Extended warranties are designed for near new and used assets and cover you in the event of an unexpected mechanical or electronic failure.

On Road Finance provide different levels of cover for different asset types, asset age and kilometres driven, ranging from 1 to 5 years.

These extended warranties allow you to have your vehicle repaired at a repairer of your choice, Australia-wide!

Guaranteed Asset Protection

Also known as GAP Insurance or Shortfall Insurance, Guaranteed Asset Protection is designed to pay the credit provider any outstanding loan balance, where the total loss payment made by the comprehensive motor vehicle insurer is insufficient to pay the loan contract.

For example, imagine your two year old car gets rear-ended and your insurance company declares your vehicle a “write off”, and then pays your credit provider (because they have interest on the vehicle title) the current market value of the vehicle, which is $15000. Your loan balance was $20000. This means you still have the balance of $5000 owing to the finance provider for a vehicle you no longer have.

With a Guaranteed Asset Protection Insurance, this shortfall of $5000 will be paid to the credit provider, relieving you of the loan and allowing you to purchase your replacement vehicle, stress free.

Loan Termination Insurance

LTI can help reduce the stress of struggling to make your loan repayments. You could choose to hand your vehicle back to the dealer and cancel the loan.

If you prefer to hold onto the vehicle, Loan Termination Insurance can make lump sum payments to your credit provider, up to an agreed amount depending on the cover you select, on your behalf.

HardshipConsumer Credit Insurance

Also known as Loan Protection Insurance, a CCI covers your finance repayments when you are unable to work due to accident, injury, disability, involuntary unemployment and even death.

If the unexpected strikes, have peace of mind knowing that a Consumer Credit Insurance will continue to pay your loan until you are fit and ready for work again.

Roadside Assistance

When your vehicle breaks down, what do you do? With Roadside Assistance, help is just a phone call away, 24 hours a day, 7 days a week.

On Road Finance has access to Australia’s best Roadside Assistance companies, offering great roadside services Australia-wide. Services include roadside mechanical repairs, locksmiths, jump-starting batteries, towing and more.

Conclusion

To check if you qualify for any of the above insurance products, or if you have any further questions, contact us here or call On Road Finance on 1300 518 580.

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Motorcycle Loans Explained

Motorcycle RiderWhether it’s cruising the highway on your road bike, destroying the tracks on your dirt bike, or zipping around the narrow streets on your scooter, On Road Finance is here to assist you secure a bike loan for your next two, three or four-wheeled purchase, new or used.

There are two options when it comes to Motorcycle Loans, Secured Loans and Personal Loans, and in todays blog I will explain the pros and cons for both.

Secured Motorcycle Loans

A Secured Bike Loan is a finance product where the lender funds the customers purchase of a bike and secures the loan against the motorcycle.

Also known as a consumer bike loan, a secured bike loan is the most popular option for most of our customers. This is due to the competitive rates and repayments compared to other loan types.

The customer takes ownership of the motorbike at the time of purchase and the lender takes an interest in the motorbike as security for the loan. Once the contract has been completed, the lender lifts their interest in the motorbike, giving the customer clear title.

Pros Cons
Lower interest rates If you default, the lender will repossess the bike
1 to 7 year loan terms Penalty fees for paying the loan off faster, unlike personal loans.
May borrow higher amounts Cheaper bikes may not be accepted
Lower risk to lenders Classic bikes may be difficult to finance, unlike personal loans.
Bad credit accepted

Personal Loan

A personal loan is your typical type of unsecured loan, where the lender will provide you with the funds to make a purchase of your liking. On Road Finance customers prefer a personal loan when they want to borrow a specific amount of money to use for motorcycle purchases.

With a personal loan, you could apply for a larger amount than the bike price for extras such as bike clothing, helmet, gloves, accessories and more.

Pros Cons
No restrictions on bike age Slightly higher interest rates
Can borrow as little as $2000 Usually capped at $35k
No security required for approval Lengthy paperwork
Can be used towards ANY purchase Bad credit not accepted
Helps consolidate existing debt
Can pay off faster without penalties

Conclusion

On Road Finance specialists work around the clock to provide you with a level of service like no other. With a panel of over 25 lenders Australia-wide, you’re guaranteed to receive the lowest interest rate and best finance options, tailor made to suit your budget and lifestyle.

Road bikes, dirt bikes, quad bikes, sports bikes, touring bikes, classic bikes and scooters. On Road Finance has you covered!

Apply now for a fast and easy bike loan approval!

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The Small Business Tax Break And How To Make The Most Of It

Tax BreaksAn important step in building a successful business is ensuring you have the right tools and equipment to support your day to day operations. Whether you’re setting up a new business venture or growing an existing business, getting the foundations right is of extreme importance.

From the 2nd of April 2019, the instant asset write-off threshold was increased to $30,000 by the Australian government. It was increased from $20,000 and the change will apply until the 30th of June 2020.

Your business may experience challenges in managing cash flow when upgrading or replacing a depreciable business asset, which is why it’s important to understand the impact of this $30,000 small business stimulus package for business vehicles, plant and equipment purchases.

Small and medium businesses may be eligible to claim an immediate tax deduction on certain assets costing less than $30,000 each. If it’s time to upgrade your existing business vehicle, plant or equipment, you may be eligible for an upfront 100% tax deduction.

Are you eligible?

As of today, to be eligible for the small business stimulus package, your business must meet the following requirements:

  • Must have an active ABN
  • Your business must be earning an aggregated annual turnover of less than $50 million.

What type of asset can you purchase?

Vehicles and equipment, both new and used, which are purchased for commercial purposes costing less than $30,000 are eligible for the instant asset write-off.

What if the asset is OVER $30,000?

According to the Australian Taxation Office, if you are planning to purchase a vehicle for your business over the $30,000 threshold,  expenses may still be deducted via:

  • Cents per Kilometre
    The mileage rate changes every year, though you may be able to claim 66c for every kilometre your car is driven for commercial and businesses purposes, capped at a maximum of 5,000 business kilometres per car.
  • Depreciation
    Over time the vehicle you purchase will depreciate in value, like any other vehicle. So, the benefit of having a business car means that you can claim some of the loss in value. Assets that cost $30,000 or more (which cannot be immediately deducted under other provisions) may be deductible over time using the general small business pool.
  • Business operating costs
    If your vehicle is used for business and commercial purposes, then you may be able to claim the cost of petrol, servicing or repairs, insurance and even interest on your car loan.
  • Leasing costs
    If your business is leasing your vehicle, the lease payments may be deductible to your business for income tax purposes.

Does the Small Business Stimulus apply to vehicles or equipment under finance?

Yes! If the business vehicle and/or equipment is purchased through a commercial loan, the instant asset write-off still applies. It’s a great time to apply for a commercial loan to take advantage of the Small Business Tax Break. According to the ATO, the $30,000 threshold will only remain until the 30th of June 2020 and will revert back to $1,000 from the 1st of July 2020.

How to get started

On Road Finance offers a range of finance solutions that can be tailor made to suit your business. You can purchase the asset you need, when you need it, and let our brokers handle the finance for you.

On Road Finance can offer Chattel Mortgages, Hire Purchases, Novated Leases and Low Doc Loans for your business.

Cars, buses, trucks, trailers, excavators, mowers, printing equipment, medical and dental equipment, dynamometers, sheds, cool rooms, spray booths, GPS equipment and more! If it’s used for business purposes, On Road Finance can finance it!

Apply online for a commercial loan approval and let On Road Finance grow your business today!

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2019’s Best Used Cars

CarSales has this week announced its 2019 Best Used Car Awards which uses a combination of expert evaluation, data from Redbook.com.au and consumer sentiment. A panel of judges selected Australia’s best used cars from hundreds of vehicles in the local marketplace.

The eligibility conditions were that the vehicle must have been sold new in Australia during 2013 (6 years old) and they were to be fitted with electronic stability control in the case of passenger cars.

Here are the results:

CarSales Best Used Cars 2019 Category Winners

Small passenger car: 2013 Mazda3 Maxx Hatchback

Mazda3

Medium passenger car: 2013 Mazda6 Sport Sedan

Mazda6

Large passenger car: 2013 Holden Commodore VF SV6 Sedan

VF Commdore

Small SUV: 2013 Hyundai ix35 Elite Wagon

Hyundai ix35

Medium SUV: 2013 Mazda CX-5 Maxx Wagon

Mazda CX5

Large SUV: 2013 Land Rover Discovery 4 TDV6 Wagon

Landrover Discovery

Sports car: 2013 Mazda MX-5 Sports Roadster Coupe

Mazda MX5

Luxury car: 2013 Mercedes-Benz S500 Sedan

Merc S-Class

Dual-cab ute: 2013 Ford Ranger PX XLT Double Cab Utility

Ford Ranger

Offroad 4×4: 2013 Toyota Landcruiser Prado Kakadu Wagon

Landcruiser

 

Mazda looks like the brand to beat, winning four of the ten categories. The Japanese brand was the outright champion in small cars, medium cars, sports cars and medium SUVs.

Are you in the market for a second-hand car? These results might assist you in purchasing your next vehicle. If it’s a brand new car you’re after, make sure to read our guide on how to purchase a new car.

If you require a car loan, On Road Finance can assist you purchase a used car of ANY age, especially a 2013 model which all credit providers would gladly accept as security. Apply for car finance today or contact On Road Finance on 1300 518 580.

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Boat Finance – It’s easier than you think!

Boat CruisingAustralia has more beaches than any other country and considering that 80% of us Aussies live within 100km of the coastline, it’s hard not to love the water. What better way to get into water sports, fish quietly on a lake or take the family out for a leisurely weekend than on a boat?

Turns out we can finance ON WATER products too! On Road Finance can provide you with the boat finance you need and it’s easier than you think!

There is a misconception going around that the regular Aussie isn’t eligible for a boat loan unless they apply for a personal loan directly through their bank. Not only is this an expensive error, but It’s also completely wrong.

Much like a car loan, anyone is eligible for boat finance provided you meet the regular criteria (over 18, employed, acceptable credit, financially stable etc). You won’t be knocked back simply because you aren’t a home owner or have a $100k salary. On Road Finance can even assist applicants with bad credit history get a loan for a boat or jet ski.

The application process is extremely simple and quick. Most applications have a turn-around time of 24 hours and in some cases you could receive a response on the same day. The boat will be used as security towards the loan and you don’t even need a boat licence! A drivers licence is sufficient enough.

On Road Finance can assist you purchase your next boat or jet ski of any size. The boat you are purchasing can be new or used, sourced from a dealer or private. Love your boat but need a little more juice? Boat owners can even apply for finance on the engine only.

The next time you’re thinking of buying a boat, ignore the bank and give On Road Finance a go! You can apply for an On Road Finance tailor made boat loan today by submitting an online finance application form or by contacting our team of brokers on 1300 518 580.

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Why You Should Stay Away From Payday Loans

We’ve all seen the numerous influx of ads on TV. The ad usually consists of a person sitting on the couch in front of their TV, quickly applying for a loan for home improvements or car repairs using their mobile phone and BOOM! Money is in the account. Fast, easy, safe and secure. Only 4% monthly fee? What could possibly go wrong? Well On Road Finance is here to tell you that A LOT could go wrong, and fast! But first…

What is a Payday Loan?Payday loans

A payday loan or a short-term loan is a small loan offered until you get paid. They are offered by privately owned credit providers (not banks) and can range between $100 and $3000 and are set up to be paid off from one month to two years. For most people, payday loans are used to save one from a desperate situation, when they really need the money right away.

The payday loan industry exceeded $1 Billion in 2018, with no signs of slowing down. With tasteless and aggressive marketing, along with easy to use websites and the promise of receiving money in a few simple clicks, a payday loan may seem like the perfect solution to your financial problems.

Here are the pros and cons of a payday loans.

PROS

Payday loan applications are quick. They can be made online and when time is of the essence, this process can be a life-saver. You can apply online, day or night, and get your answer right away.

Once approved, you receive the money instantly. Unlike traditional loans, when you need the cash as soon as possible, the payday loan delivers.

This is where the pros stop.

CONS

It’s expensive – The fine print that you can easily skim over, details exactly what these payday loan providers can implement if any of their loan conditions are not met. That 4% monthly fee you thought was too good to be true, can quickly balloon to an effective interest rate of 400% (or even higher).

Payday loans are predatory – Payday loans are viewed as a predatory loan because of the high costs that can escalate quickly. The lenders don’t check whether you’ll be able to repay the loan. If you can’t repay the loan, you’ll be forced to roll the loan over repeatedly, thus accumulating new fees and higher interest each time.

Your credit rating will suffer – Any time you apply for a payday loan, whether you accept the cash or not, your credit score reduces significantly. Almost all credit providers and banks in Australia look badly upon payday loan providers and any applicant who has every applied or utilised a payday loan (especially within the past 12 months) will be heavily assessed or even outright declined, no ifs or buts.

This means, the next time you apply for a mortgage, car loan, personal loan or any time of regular loan, the credit provider will notice the payday loan enquiry on your credit file and will do one of the following:

  • Instantly decline you
  • Ask for extra supporting documents (and you better hope they are 100% crystal clean)
  • Increase your interest rate because of the risk involved
  • Condition your loan approval with a large deposit to outweigh the risk

They don’t help build credit – Here at On Road Finance, we’ve had customers approach us saying they applied for a payday loan to help boost their credit. They thought that applying for a short-term loan and paying it off as fast as possible would help build credit and make their profile look nicer on paper. In fact, they did the opposite. Applying for a payday loan is detrimental to your credit file, no matter how fast you pay it off.

Payday loans are hard to come back from – It’s no secret that payday loan providers target low-income, minority communities. The number of households using payday loans in Australia increased by 55% between 2010 and 2015. One in four payday loan borrowers are behind on their repayments or in default. Studies have found that customers using payday loans don’t use the service once or twice but actually rely on the funds provided to get by, thus digging themselves into never-ending debt.

Final thoughts

Taking Cash Away

In the last 6 years working as a finance broker, the number of payday loans evident on my customers applications has been increasing more and more each year. Some of these customers never even needed a payday loan and simply thought it would boost their credit score. The Australian public has been receiving bad advice from the payday loan providers and the government isn’t doing enough to educate consumers on the disadvantages of applying for a short-term loan.

At On Road Finance, we understand that you may have difficulties financially. All in all, payday loans can save you from a desperate situation when you need money on the spot. However, you must also be aware of the trappings of a payday loan, including the high-interest rates, possible extra fees and the way it may affect your credit score.

To do it the right way, without hurting your credit score, consider applying for a personal loan. On Road Finance provides personal loans from $5000 to $35000 for customers across all of Australia. You can learn more about personal loans here or by calling one of our professional On Road Finance brokers on 1300 518 580.

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Tips For Buying A New Car

Ah, the dreaded process of having to buy a new car. What should be an exciting experience can quickly turn into a frustrating and expensive disappointment if you’re not careful. Being patient, doing your research and sticking firm to your budget can help you nab a great deal.

Avoid being stung by pushy salesmen and follow the On Road Finance tips for buying a new car.

Couple Buying New Car

Do your research

This is the first and most important step to making sure that you are in power, not the salesman. Arriving at a dealership without first researching the car you want to buy is a mistake which will cost you a lot of time and money.

You can find just about anything you want to know about a car on the internet. Redbook, Car Advice and consumer reports are a great place to start but I find the best sites to be the online forums. Reading about the prices, upgrades and locations from other buyers like yourself will give you a better understanding of the deals that are out there. All you need to do is Google the car you are purchasing and the word “forum”. For example, if I was in the market for a new Hyundai i30, I would simple search “Hyundai i30 forum”. The search results will show a number of different forums and communities for Hyundai enthusiasts like you. Here, buyers share their deals with others across the country. When you know what discounts other buyers have received, you know you can receive the same deals.

Be patient

You should never rush into purchasing a new car. If you know what car you intend to purchase, hop onto the manufacturers website and make note of the retail price (MRDP). Do this on a monthly basis to see how the retail price fluctuates depending on promotions.

Simply waiting a few months and being patient can save you thousands of dollars. Knowing the median retail price is where the next step comes in handy.

Expect 15% off retailmoney savings

“This man is crazy” is probably what you’re thinking right now, but I assure you, a 15% discount off the recommended retail price is not a crazy expectation.

If the vehicle is advertised at $35000 RRP, the dealer may lean forward and whisper “I’ll look after you and sell it for $32500, but don’t tell anyone”. Oldest trick in the book! Imagine the look on his face when you whisper back “$29750 or I go to another dealer”. 15% off $35000 is $29750. This is your price, take it or leave it. Stick to your guns and be firm with this price. Let the dealer know that you are a serious buyer and are willing to commit if they come to the table.

It may not work the first time but eventually you will get what you want, if the timing is right. This is where the next step becomes important.

Make your offer at the end of the month

Car salesmen wages are paid in two formats. They receive a base minimum salary plus a commission every month depending on how many cars and how many bonuses they sell. They have targets to reach every month and going over these targets provides them higher incentives. Basically, the more cars they sell, the more commissions they are paid.

The last week of the month is crunch time. Salesmen are eager (and sometimes desperate) to sell you a car to meet target, even if this means selling the car at a loss. The sales person will usually know if the offered price (15% off retail) is doable, but must always get the approval from the dealer manager.

A few circumstances will determine whether you’ll receive a yes or no answer. How have sales been this month? Are there any price incentives from the manufacturer? Does the dealer want volume sales for internal stats? Is the car in stock or would it have to be ordered into the country? Is the manager in a good mood or bad mood?

The last week of the month, or better yet, the last few days of the month are the prime time to purchase a new car. If the dealership has had a quiet month and are struggling to meet target, they will sell you the car at your price to make ends meet. If the dealership has had a busy month and are well above target, the manager may agree to your offer simply to make the books look better. The more cars the dealership sells, the better incentives the manufacturer provides that dealership.

If you contact the dealership too early into the month, they may refuse your offer simply because another customer will pay more than you!

Have your finance pre-approved

ApprovedIf you intend to purchase your new car on finance, obtaining the car loan from the dealership may not always be the best option. Franchise dealers and their business managers have access to only a handful of credit providers, and even then, they prefer to usually work with two or three at a time. Not a lot of shopping around for best deals when you only work with two or three lenders.

On Road Finance has accreditation with a panel of over 25 lenders and credit providers. Our relationship with some of the largest brands in asset finance and insurance ensure we provide our customers the cheapest interest rates and fastest possible turn around, while still maintaining the greatest level of service in the industry.

Retrieving an On Road Finance pre-approval before committing to a purchase of a new car is the wise thing to do for a few reasons.

Firstly, with a pre-approval, there is no doubt of being declined. The assessments have been completed and the credit providers are happy to have you on board. Many previous customers have complained to me about applying for finance through the dealership, only to find out that they can’t get approved. They approach me to assist them after the dealership has already taken their deposit and left credit enquiries on the applicants credit file.

Secondly, with a pre-approval, you know your buying power! The lender may approve your application but not the amount you want to purchase. No point shopping around for a $30000 car when you’re only eligible for $20000.

Lastly, you may think you can afford that $30000 car until you find out the repayments are over your budget. Retrieving a pre-approval will be more precise than a quote and will advise you of the exact repayments. This will allow you to shop around for a car that fits the budget.

On Road Finance specialise in arranging asset finance for people from all walks of life. Our vehicle finance and insurance brokers provide dedicated online financial services throughout Australia, direct to customers. With over 7 years of industry experience, the staff at On Road Finance are equipped with the knowledge and professional expertise to assist customers with their finance applications, ensuring a smooth and seamless process. Our relationship with some of the largest brands in asset finance and insurance ensure we provide our customers the cheapest interest rates and fastest possible turn around, while still maintaining the greatest level of service in the industry.

On Road Finance have suitable finance options for consumer and business customers. Apply for a new car loan pre-approval today or feel free to speak to me on 1300 518 580.

Final Word

In conclusion, buying a new car is a major purchase and it’s important to educate yourself so you can go into negotiations well prepared. Following the On Road Finance tips will ensure you get the best deal possible.

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New Website And Our Very First Blog

Joseph Diodati - Managing Director

Welcome to the first ever On Road Finance blog, launching simultaneously with our brand new website!

My name is Joseph Diodati, the managing director of On Road Finance Pty Ltd and I would love to personally thank you for visiting the new site, reading this blog and being a part of the On Road Finance family.

With over 6 years of experience as an asset finance broker, my knowledge and expertise in the industry will assist you in making the right decision when purchasing a new or used car, bike, boat or caravan and essentially providing you with the general advice in sourcing the best and cheapest finance options to meet your requirements.

You’ll be hearing and seeing more from me! On a weekly basis, I will be posting new blogs right here on the website and sharing through social media outlets. These blogs may provide you with insights in the car market, advice on how to achieve a better finance deal, tips and tricks of the trade and more.

Until then, feel free to browse around the site and leave me some feedback at joseph@onroadfinance.com.au

Regards,

Joseph Diodati

Managing Director

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