How to use a range of financing options to get yourself into a brand new Jeep.
Jeep builds premium and rugged 4x4 SUVs for on and off-road adventures.
The Jeep line-up ranges from the compact Compass SUV right up to the multi-award winning Grand Cherokee.
Right now, there are a number of clearance deals on offer from Jeep Australia, with savings of up to $4,500.
This guide will help you understand the different purchasing options you can use to buy your new Jeep.
Car loans you can consider for financing a Jeep
What types of finance are available for a new Jeep?
- Dealer Finance. Jeep dealerships offer financing directly to private and business buyers. Chrysler Group Financial is Jeep’s official financing arm in Australia.
- Dealer Consumer Loan. Chrysler Group Financial 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 car. 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 out of 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 car 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 should I consider when financing a Jeep?
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 a loan?
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 car, 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.