Compare the pros and cons of different Infiniti finance options
Got your heart set on an Infiniti? Find out everything you need to know about different Infiniti finance options available to you.
Infiniti was developed by Nissan as its luxury car brand and began trading throughout North America in 1989. 2012 saw the launch of Infiniti as a distinct brand in Australia, and it has gone from strength to strength with luxury car enthusiasts ever since.
Popular models of Infiniti available in Australia
Infiniti currently has an impressive range of cars available in Australia and has expressed plans to further extend the range. Current models available in Australia are the QX80 SUV, QX70 crossover, Q70 sedan, Q60 sports coupe, Q50 sports sedan, QX30 compact crossover and the Q30 active compact.
How much does it cost to buy and run an Infiniti?
Initial purchase cost
According to Redbook, the cost to purchase new 2018 Infiniti models in Australia is as follows:
- 2018 Infiniti Q30 from $38,900
- 2018 Infiniti Q50 from $54,900
- 2018 Infiniti Q60 from $62,900
- 2018 Infiniti Q70 from $68,900
- 2018 Infiniti QX30 from $48,900
- 2018 Infiniti QX70 from $76,400
- 2018 Infiniti QX80 from $110,900
According to information provided by the Australian Government's Green Vehicle Guide www.greenvehicleguide.gov.au, the Infiniti Q30 is the most fuel-efficient Infiniti vehicle, with a minimum urban fuel consumption of 6.2 litres per 100 kilometres. The Infiniti QX30 ranks next, with a minimum urban fuel consumption of 8.9 L/100km, followed by the Infiniti Q50 at 9.8 L/100km, the Infiniti Q70 at 9.2 L/100km, the Infiniti Q60 at 10.2 L/100km, the Infiniti QX70 at 11.2 L/100km, followed by the Infiniti QX80 at 20.9 L/100km.
Since the Australian Taxation Office defines a fuel-efficient car as one with a fuel consumption of 7 L/100km or less, only the Infiniti Q30 would fall into this category, with the other Australian models not meeting the definition of a fuel-efficient car.
Compare car loans suitable for purchasing an Infiniti
Other costs to consider
- New car extras. When purchasing a new car, it can be tempting to be lured in by a reasonable-sounding sticker price. Keep in mind that the advertised price is generally the lowest possible price, and extras such as leather seats, metallic paint and automatic transmission will increase the price.
- Ongoing servicing and repairs. All cars should be serviced regularly to keep them in good running order and to prevent an expensive problem from developing. Additionally, logbook servicing is generally required after purchasing a new car.
- Stamp duty. You can calculate the amount of motor vehicle stamp duty you may need to pay here. A tax to cover the cost of transferring registration of a car between two parties, the amount of stamp duty payable will depend on several factors including the purchase price of the car. The way stamp duty is calculated can vary between Australian jurisdictions, and stamp duty can also be known as vehicle registration duty, motor vehicle stamp duty or motor vehicle duty. Stamp duty applies when purchasing both new and used cars.
- Insurance. Several types of insurance can apply to motor vehicles in Australia. Compulsory third party (CTP) insurance is legally required throughout Australia and protects third parties who may be injured by your driving. Other motor vehicle insurance is optional but can protect your investment should your car be involved in an accident or stolen.
- Dealer delivery. Dealer delivery refers to the cost imposed on you, set by the dealer, to bring your new car from the manufacturer to you.
- Finance costs. Read on for more information on the costs associated with different Infiniti finance options.
What types of Infiniti finance options are available?
Decided on the perfect Infiniti for you? Now it's time to consider your Infiniti finance options. With so many different options to choose from, the best solution for you will depend on your circumstances.
Consider the following types of Infiniti finance options:
Commercial hire purchase
A commercial hire purchase can be a good choice for self-employed people who intend to use the car primarily for business purposes. Regular repayments are made during the course of the lease term, with the car being purchased outright at the end of the term, typically with a balloon payment due.
Using a credit card to purchase a car can be a much more convenient option than going through a loan approval process, but it can also end up costing you more in the long run. Credit cards tend to have much higher interest rates than other Infiniti finance options. If you have your heart set on racking up a huge number of credit card reward points with the purchase, be realistic about how long it will take you to pay off this credit card debt and how much interest you'll accrue in the meantime. Before taking out a new credit card to fund the purchase, take the time to compare credit cards to make sure you get the best deal.
Has your credit score improved since you took out your mortgage, or has the value of your property significantly increased? It may be worth refinancing your home loan to get a better deal, and freeing up some of the equity in your home at the same time. In these circumstances, you could end up with enough money to purchase your car while also securing a better deal on your mortgage. Be aware of fees that come with refinancing, including having a new valuation performed on your property, as well as early exit fees and loan application fees.
A mortgage redraw could be a viable option if you have sufficient funds in a home loan offset account or redraw facility. However, it is important to keep in mind that if you use funds that would otherwise have been offsetting your mortgage, you are essentially borrowing that money for the remaining term of your home loan. Although home loan interest rates tend to be lower than other forms of personal lending, the longer you take to pay off a loan, the more it ends up costing overall.
Secured car loan
A secured car loan poses less risk to the lender than an unsecured loan and can carry with it a lower interest rate and other favourable terms. It is important to remember that if you default on the loan, the lender can take possession of your car since it has been used as security for the loan.
Unsecured car loan
An unsecured car loan poses more risk to the lender and as such will usually attract higher interest rates and other fees than similar secured finance.
Pre-approved car loan
A pre-approved car loan is one in which you begin the loan application process prior to entering into an agreement to purchase a car. Once you know how much you are able to borrow, you can use this information to your advantage to get a more expensive car at a discount or to use your existing pre-approval to negotiate an even better finance deal directly from the dealership.
With a novated lease, you'll be entering into a three-way contract between yourself as the employee, your employer and the car dealership. Lease payments are taken out of your before-tax salary, reducing the amount of income tax you are liable to pay. While this arrangement can benefit some employees, it needs to be weighed against the fringe benefits tax that will be payable on the novated lease arrangement.
Infiniti dealer finance
Infiniti offers financial services to assist individuals and businesses with the costs of purchasing a new Infiniti. Click here to compare dealer finance with other forms of car loans.
- Consumer loan. With loan terms ranging between one and seven years and a fixed interest rate applicable, an Infiniti consumer loan allows for extra payments to be made subject to early termination fees.
- Finance lease. Infiniti offers a finance agreement with fixed monthly payments over a set finance term. At the end of the lease term, you have the option to purchase the car outright subject to a balloon payment, refinance the lease agreement or upgrade to a newer Infiniti.
- Novated lease. Infiniti offers a novated lease as part of a salary packaging tool, allowing employees to make lease payments directly from their pre-tax income.
- Business line of credit. Infiniti offers a line of credit option for approved businesses, allowing for the purchase of Infiniti vehicles as required within a pre-set approval limit.
Factors to consider when comparing Infiniti finance options
Consider the following when comparing finance options:
- Interest rate. The interest rate will understandably be one of the biggest considerations you make when you compare car loans, but you should also take other factors into account.
- Repayment frequency. The frequency of your loan repayments should match your circumstances, with some people better able to budget for smaller weekly payments, while others may prefer monthly or fortnightly payments to coincide with their pay period.
- Loan amount. Make sure that the loan amount covers all costs associated with purchasing the car, including dealer delivery and stamp duty.
- Loan flexibility. Loan flexibility is important if there is a chance you will want to pay out the loan early, refinance or trade your car in for a newer model before the end of the original loan term.
- Loan term. Consider the loan term that would best suit your circumstances. Loan terms for car loans are usually between one and seven years, while using a credit card or redrawing or refinancing your mortgage could involve a different term altogether.
- Fees and charges. Be mindful of fees and charges associated with the loan, including application fees and ongoing administrative fees.
- Balloon payment. If you're looking to reduce the amount of your ongoing payments, a balloon payment at the end of the loan term is worth considering. However, this is an expense that must be budgeted for, and it is important to ensure that the amount of the loan payment doesn't outweigh the value of the car.
How to apply for finance to buy an Infiniti
The loan application process will vary from lender to lender and will depend on whether you are applying as an individual or a business.
As a private buyer, you will need to meet the following minimum criteria for vehicle finance:
- Older than 18 years
- Earning a steady income
- Australian citizen or permanent resident
As a private buyer, expect to be asked for the following documents when applying for vehicle finance:
- Proof of ID
- Details of the vehicle you intend to purchase, including its estimated total cost
- Proof of income and employment
- Details of other assets and liabilities
- Ongoing expenses and credit card limits
Frequently asked questions
When was the Infiniti brand launched?
As a division of the Japanese car company Nissan, Infiniti came about in the company's attempt to gain traction in the US vehicle market. In the 1980s and earlier, the United States preferred American and European luxury cars and was sceptical of cars made in Japan. In 1989, Nissan launched its new Infiniti luxury vehicle brand in the United States and soon found success, after which it was rolled out to other countries.
What does the Infiniti name and logo mean?
Infiniti is derived from the English word "infinity" and was chosen due to the company's desire to "always be looking forward to new horizons". Continuing with this theme, the company's logo symbolises "two central lines leading off into an infinite point on the horizon".
Will my credit report be affected by a car loan application?
All loan applications involve a credit check, and all will appear on your credit report. Should your loan application be denied and you decide to apply elsewhere, your credit report will also show the earlier application.