James Lyons, Author at Platform Finance - Page 2 of 2

Trading In vs Private Sale

When your clients are ready to upgrade their car to new model, they are sometimes faced with the dilemma of how to sell their current car. There are two common methods to consider: trading it in at a dealership, or selling the car privately.

Both methods have their pros and cons, so how you or your clients decide to go about it will depend on your priorities and needs. Do you need to sell it quickly? How much time do you have? Or do you need to get as much money for it as possible so you can finally go on that holiday?

 

Trading in to a Dealer

Pros

  • A car dealership will accept a car in any condition. You obviously won’t get top dollar if repairs are required, but you will easily rid yourself of the car and all its headaches
  • It’s simple, convenient and saves you time. The deal can be done in a matter of minutes and the dealership takes care of all the transfer paperwork
  • The trade-in amount can be deducted from the price of your new car

Cons

  • You generally won’t make as much money on your trade at a dealership. You are likely to receive 10-20% less than market value
  • Negotiating with a dealer to get the best trade-in price, can sometimes be daunting. Make sure you are prepared to haggle

 

Private Sale

Pros

  • Selling privately is likely to put more money in your pocket
  • You have control of the selling price
  • If you have a popular model car, with all the features that customers want, all your service history and low mileage, your car is likely to sell quickly privately

Cons

  • You will need to do your research on numerous websites to decide on the acceptable “market price” for your car
  • The car will need to be spotless and all repairs done, as the private buyer will scrutinise the vehicle from top to bottom
  • You’ll need to arrange your own advertising
  • It’s best to have proof of your vehicle’s service and maintenance history to avoid curly questions from buyers
  • Most buyers ask for a mechanical inspection report before purchasing, so it’s best to be on the front foot with this
  • Waiting around for people to come and look at the car can be tiresome and unproductive…not to mention it could take weeks or months to finally find the right buyer
  • Make sure you ask your buyer for ID and check they have insurance before test driving your car. Most importantly don’t sign any transfer papers until you have been paid for it

 

PPSR Search

Whether you are selling privately or through a dealership, you should consider doing a PPSR (Personal Property Securities Register) search before selling. This will provide you with a certificate to hand on to the prospective buyer proving that there’s no finance owing on the vehicle. The buyer will have peace of mind that they aren’t taking on any debt with the second-hand car and it will speed up the sales process.

 

Car Buying Service

Another option is to consider a car buying service and avoid the dealerships and selling privately altogether. Our sister company Fleet Avenue, can arrange to buy your new dream car at a discounted fleet price, deliver the car to your home or work and take away your trade-in at the same time. Out with the old and in with the new without leaving your house!

Just remember, consider what your needs are, and whether it’s worth selling privately and possibly making more money, or if you’d benefit by trading in and saving both time and effort. We have experts on hand to assist you with all things cars – from unbiased advice on the best cars for the best resale, through to finding you the best finance options for personal or business use.

Chattel Mortgage Facts

A chattel mortgage is the most popular form of finance for vehicles that are primarily used for business. Want to know the ins and outs of a chattel mortgage and how it can benefit your clients?

 

How does a chattel mortgage work?

Under a chattel mortgage, you borrow money from a lender to buy ‘moveable’ property – in this case, a car. The lender secures the loan against the car (much like a secured loan) and holds the mortgage until the loan is repaid.

 

Will I own the car outright?

Yes, you can own the vehicle outright at the end of the term, but until the finance is repaid the lender holds a ‘mortgage’ over it, as security. Once you’ve paid the loan out in full, the mortgage is removed. Alternatively, if at the end of the loan term you haven’t paid the loan out in full, you can choose to re-finance the residual value or trade the vehicle in for a new one.

 

What are the product features?

  • Fixed interest rates and monthly repayments over the term of the loan
  • Choice of flexible repayment periods spread over one to seven years
  • Option to reduce monthly repayments through a residual or balloon payment (only available one to five years)
  • You can finance the total purchase price, pay a deposit or use a trade-in to reduce the loan amount
  • Minimal capital outlay so you don’t eat into your cash flow

 

Are there tax benefits?

  • You can potentially claim tax deductions on the loan interest charges if you use the car primarily for business purposes
  • If you are registered for GST you may be able to claim input tax credits on your BAS
  • Business owners may also benefit from claiming vehicle depreciation in their tax return

 

Who does this finance product suit?

Both businesses and individuals are eligible for a chattel mortgage, as long as the car is being used predominantly for business purposes.

Use these features and benefits as a guide when you are speaking to customers to see if a chattel mortgage is suited to their business and situation. To find out more, give us a call and we’ll help you choose the right loan for your customers.

Asset Write-Off Increased to $30,000

It’s the perfect time to talk to your commercial clients and highlight the potential benefits that are available this EOFY.

The Asset Write-Off threshold has increased from $20,000 to $30,000, so there’s never been a better time for owners to invest in their business.

The Federal Government made improvements to the Asset Write-Off initiative in April and it now consists of three tiers with an expanded eligibility for larger businesses.

 

Here is a high level breakdown:

The scheme was previously reserved for smaller businesses turning over less than $10 million a year but has been widened to include those turning over less than $50 million per year. Eligible businesses will be able to claim the write-off every time they purchase an asset under the applicable threshold cap.

 

What do the changes mean for your customers?

It’s pretty simple – if they buy an eligible asset under tier 1, 2 or 3, they can immediately write the purchase off on tax (customers should always seek independent financial advice on the above). So, whether your customers need a car, ute or equipment for their business, from now until June 30 is a great time to buy.

 

Speak to the Asset Finance broker support team on 1300 730 856 for more information today.

No Financials Plant and Equipment Finance

Not only do we have low doc car loans, but we can also service self-employed clients who wish to purchase new plant or equipment to help grow their business. They can upgrade their capital or office equipment without providing full financials.

 

They just need to meet the following criteria:

  • ABN for more than 2 years and is registered for GST
  • Asset-backed in the borrower’s name or spouses name
  • Clear credit file
  • 20% deposit required and an asset finance credit reference for non-home owners

 

There are two tiers of different equipment which have different MAX amounts financed.

Here are some examples of what goods are in each tier:

If the item depreciates, we can finance it. Speak to your BDM or the Asset Finance broker support team on 1300 730 856 for more information.

No Financials Vehicle Finance

Do you have self-employed clients that could be entitled to obtain their next car and finance package using a low doc facility? This product could help them focus on their business rather than running around gathering tax returns and proof of income. We have “no financials” products that could help provide your client decent tax deductions before June 30.

 

Some of the basic guidelines are:

  • Lend of up to $150k
  • Private sales permitted
  • No early payout penalty
  • No rate loading for low doc
  • Pre-approval permitted

 

To be eligible, the self-employed profile is as follows:

  • ABN for more than 1 year
  • Property owner or 20% deposit
  • Using the vehicle for commercial purposes
  • Clean credit file
  • Vehicle less than 7 years old

 

Did you know that we can also offer Professional Packs on cars?

Contact our Asset Finance broker support team on 1300 730 856 to learn more about our low doc commercial car loans.