Used car finance from 48+ Australian lenders.

Most lenders allow the car to be up to about 12 to 15 years old at the end of the term, so a seven-year-old car can usually still get a five-year term with the right lender. Older or classic vehicles are financed by a smaller group of lenders on shorter terms, often with a deposit. Kilometres, condition and service history matter as much as age.

Yes. Private-sale finance is common. The lender runs a PPSR check to confirm the car has no money owing and is not written off or stolen, verifies the seller’s identity and ownership, and usually arranges a short inspection. Funds are paid to the seller directly, or to their lender first if there is finance to clear. Allow a few extra days compared with a dealer purchase.

Slightly, on average. Lenders price used vehicles a little above new because their resale value is harder to predict, and private sales sit a touch above dealer sales. The gap is often smaller than the depreciation you avoid by buying a two or three-year-old car, so the total cost of owning a used car is frequently lower. Your broker prices both so you can compare.

A PPSR search for encumbrances and written-off or stolen status, a check that the VIN and registration match the seller, an odometer and identity check, and for private sales an inspection with photos. Dealer sales come with statutory warranty and clear title, so the process is quicker. These checks protect you as much as the lender and take a day or two.

Often no deposit is required, particularly for established businesses buying standard assets from a dealer. A deposit is more likely where the business is new, the asset is older or specialised, the credit profile is weaker, or the amount is large relative to turnover. Deposits typically range from around 10% to 30% in those cases. Putting money in reduces the amount financed and can improve the terms offered, but it is not always necessary.

The common ones are an establishment or documentation fee charged at settlement, a monthly account-keeping fee, and a PPSR registration fee for recording the lender's interest in the asset. A brokerage fee may also apply, which we disclose to you in writing before anything is submitted. Some agreements include an early termination or break cost. Fees vary by lender and are typically a modest part of total cost compared with the interest, but they should still be compared.

Lenders publish maximum residual or balloon percentages that fall as the term lengthens, because the asset is worth less at the end of a longer term. For a vehicle, a common pattern is up to roughly 50% on a two-year term, reducing to around 20% to 30% on a five-year term. The ATO also sets minimum residual values for finance leases. A larger balloon lowers monthly repayments but increases total interest and leaves a lump sum to deal with at the end.

It is far less common than it once was. Under hire purchase the financier owns the asset and you hire it, with ownership transferring automatically after the final instalment. Since the GST changes that made chattel mortgage more attractive for businesses accounting on a cash basis, most equipment lending is written as a chattel mortgage or lease instead. Some lenders still offer commercial hire purchase, and your accountant can advise whether it suits your circumstances.

The Personal Property Securities Register is the national register of security interests in personal property, including vehicles and equipment. When a lender finances an asset, it registers its interest so the security is publicly recorded and its priority is protected if the asset is sold or the business fails. It also means a buyer searching the register will see the finance. The registration is released once the contract is paid out, and a small registration fee is usually passed on to you.

A balloon is a lump sum left to pay at the end of a chattel mortgage, which lowers the regular repayments during the term. For example, a 30 per cent balloon on a $100,000 vehicle leaves $30,000 to pay at the end, so the monthly amount is calculated on $70,000 plus interest on the full balance. Balloons are commonly set between 0 and 40 per cent depending on the asset and term, and at the end you can pay it out, refinance it or sell the asset to clear it. A balloon reduces monthly cost but increases total interest, so your broker shows both figures side by side.