Imported car finance
Car finance entails acquiring financial products to allow one own a car. These financial products may include car loans, hire purchase, and car leases. Obtaining car finance for an import car is easy but not as straightforward as acquiring finance to buy an ordinary family car from your country. This article gives in-depth insights on imported car finance.
Import car finance
You can obtain a car loan for an import car from various financial institutions like credit unions and banks or even from Audi Service Melbourne. However, some financial institutions, like big banks, perceive people seeking to import car loans as high-risk individuals and may not lend them money. Additionally, banks also ensure they get vehicle information and the car value details from Red Book to ensure that the borrower gives accurate information. If the information is not available to the bank, it might not lend car finance to the borrower.
Types of car loans
• Unsecured loans- you can get them from banks, building societies, and credit unions. Though these loans have more hurdle rates, they have lower interest rates
• Secured loans; you can obtain them from a few finance companies. However, most of the finance companies usually ask for a certain percentage of the car purchase price before they process your loan.
What is an imported vehicle?
An imported vehicle is a buy that you buy and has been produced/ made in another country other than your home country.
Are imported cars more expensive to insure?
Usually, insurance companies charge higher excesses or premiums for imported vehicles. When determining insurance costs, insurance companies typically consider various factors like cost. The amount you use to insure your car depends on the cost of the vehicle. The more expensive your import vehicle is, the more the insurance costs you will incur.
Often, insurance companies will charge higher insurance costs for import vehicles since they have high repair costs. This is because the parts of most of the import vehicles are not readily available hence causing high repair costs. To help the insurance companies cater to the high repair cost, they thus charge higher insurance costs.
Can I import a car to Australia?
You can import a car to Australia thought the process is quite tricky since the country has imposed many laws that discourage vehicle importing. Mostly, large manufacturers import cars, but they also have to make sure they meet all the standards.
Laws while importing cars to Australia
Individuals who wish to import cars must first obtain import approval. The customs control cannot release an import vehicle unless it has an import approval. On the other hand, manufacturers must have an identification plate approval. Additionally, you must meet all the quarantine requirements. Quarantine refers to car inspection done to ensure that a vehicle import meets all standards. For example, cars with asbestos components are not allowed. Your vehicle must also meet approval conditions, which involve modifying your car to make it compliant.
An import car is a car produced in another country. It is seen as luxurious and classy. You can finance an import car by using a loan, hire purchase, or lease. Often, insurance companies charge higher insurance premiums for import vehicles because they have higher repair costs. Importing a car to Australia is quite tricky, and you must follow multiple rules.