This guide will help you understand the different types of Jeep finance available.
Jeep finance: What's available?
- Dealer Finance. Jeep dealerships offer financing directly to private and business buyers. Chrysler Group Financial is the official Jeep finance provider in Australia.
- Dealer Consumer Loan. Jeep's finance division has a selection of consumer loans with terms of 12-84 months for private buyers. Deposits are optional and the loan comes with fixed interest rates. At the end of the finance contract, you can make a balloon payment or refinance the outstanding value for up to three additional years.
- Chattel Mortgage. This is a useful option for business owners and commercial buyers. Your business takes ownership of the Jeep while the lender uses the vehicle as security for the loan until you pay off the loan.
- Commercial Hire Purchase. Your business can lease the vehicle from Jeep over an agreed time frame, up to a maximum of 60 months. The monthly payments are typically fixed and pre-agreed. At the end of the lease, you have the option to purchase the vehicle or return it.
- Finance Lease. This is similar to a hire purchase and the lender retains ownership of the Jeep. You will often have to make a balloon payment at the end of the agreement.
- Novated Lease. A novated lease is a three-way financing agreement between you, your employer and a financing company. You agree to the payment terms and your employer takes the amount from your pre-tax salary, forwarding it to the finance business who owns the vehicle.
- Secured car loan. Secured car loans may limit the kind of Jeep available for purchase. Some companies will only lend on vehicles up to two years of age. Rates range from 5% to 10% p.a. These loans are subject to application and monthly fees.
- Unsecured loan. Unsecured personal loans tend to have a higher interest rate, but more flexibility. You can use this loan to cover other expenses like on-road costs or additional car accessories.
What to consider when taking out Jeep finance
When making your purchasing decision, you will want to factor in the following:
- Interest rate. Interest rates vary from lender to lender. The interest rate is also affected by the assets you offer as security. Compare a range of loans to make sure you get the most competitive rate.
- Loan Term. How long will you be borrowing the money?
- Fees. Determine what upfront costs there will be at the start of your finance agreement. Are there any ongoing costs, such as monthly charges added to the loan?
- Deposit. You can reduce the monthly payments by making an initial deposit.
- Repayment Flexibility. How flexible is the repayment schedule? Some lenders offer weekly, bi-monthly or monthly payment scheduling.
- Balloon payments. Balloon payments are significant sums to pay off, typically $5,000 or more. Do not forget to factor these into your decision and prepare to pay them off on time.
What do I need to apply for Jeep finance?
Lenders set their own eligibility criteria and have different documentation requirements for loan applications. Here are some general guidelines commonly set by finance companies:
- You’ll need to be at least 18 years of age.
- You must have a good credit score.
- Borrowers must meet minimum monthly income requirements.
- You’ll have to be eligible to work and live in Australia throughout the loan agreement.
- Most lenders require proof of ID, such as a passport or current driver’s licence.
- You will also need to provide financial information, including proof of income, previous bank statements and utility bills.
Purchasing a new or used Jeep, while exciting, is also a serious undertaking. Take your time, do your research and you’ll be driving your dream Jeep out into the bush before you know it.
Jeep finance: Loans comparison
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