--- title: Car Financing | 1800 Approved Car Loans Australia from 4.99% description: Best car financing and car loans in Australia with 1800 Approved. Learn about a hire purchase. --- ![Logo](https://www.1800approved.com.au/hubfs/Graphics%202021/AUS_logo-positive-h.png) [![1800 Approved Finance Solutions](https://www.1800approved.com.au/hubfs/Logos/1800Approved_dark.png)](https://www.1800approved.com.au) ### [**1800 277 768](tel:1800277768) # hire purchase ## What is a hire purchase? Sometimes a **hire purchase** is known as an instalment plan, is an agreement between a borrower and a lender to buy an asset (car, equipment etc.) by paying instalments over a period of time. After an initial instalment (e.g. 10% of the total) the borrower pays the remaining balance of the price of the asset plus interest. **Hire purchases** are commonly used by businesses to fund the purchase of [cars](https://www.1800approved.com.au/car-loan), [commercial vehicles](https://www.1800approved.com.au/equipment-truck-loans) and other business equipment.  Because ownership is not transferred until the end of the agreement, **hire purchase** plans to offer more protection to the lender than other sales or leasing methods for unsecured items. Until the last payment is made, the asset can be repossessed more easily because the ownership is with the lender.  Sometimes a **hire purchase** is known as an instalment plan, is an agreement between a borrower and a lender to buy an asset (car, equipment etc.) by paying instalments over a period of time. After an initial instalment (e.g. 10% of the total) the borrower pays the remaining balance of the price of the asset plus interest. **Hire purchases** are commonly used by businesses to fund the purchase of [cars](https://www.1800approved.com.au/car-loan), [commercial vehicles](https://www.1800approved.com.au/equipment-truck-loans) and other business equipment.  Because ownership is not transferred until the end of the agreement, **hire purchase** plans to offer more protection to the lender than other sales or leasing methods for unsecured items. Until the last payment is made, the asset can be repossessed more easily because the ownership is with the lender.  ## Benefits of hire purchase Like car leasing, **hire purchase** agreements to allow businesses with low working capital to purchase. It can also be more tax-efficient than standard loans because the payments are logged as expenses—speak to your accountant on how to manage your expenses.  Businesses that are looking to buy expensive machineries, such as [manufacturing, construction, engineering](https://www.1800approved.com.au/equipment-truck-loans) or office equipment such as printing may use hire purchase agreements, as could startups that have little collateral to establish lines of credit.  Like car leasing, **hire purchase** agreements to allow businesses with low working capital to purchase. It can also be more tax-efficient than standard loans because the payments are logged as expenses—speak to your accountant on how to manage your expenses.  Businesses that are looking to buy expensive machineries, such as [manufacturing, construction, engineering](https://www.1800approved.com.au/equipment-truck-loans) or office equipment such as printing may use hire purchase agreements, as could startups that have little collateral to establish lines of credit.  ## Disadvantages of hire purchase **Hire purchase** plans usually prove to be more expensive in the long run than other forms of lender options available. That's because **hire purchase** plans can have much higher interest costs. For businesses, they can also mean more administration required. Assets acquired through **hire purchase** can be returned, rendering the original agreement void if the required minimum number of payments have been made. However, purchasers suffer a huge loss on returned or repossessed goods, because they lose the amount they have paid towards the purchase up to that point.  **Hire purchase** plans usually prove to be more expensive in the long run than other forms of lender options available. That's because **hire purchase** plans can have much higher interest costs. For businesses, they can also mean more administration required. Assets acquired through **hire purchase** can be returned, rendering the original agreement void if the required minimum number of payments have been made. However, purchasers suffer a huge loss on returned or repossessed goods, because they lose the amount they have paid towards the purchase up to that point.  ## FREQUENTLY ASKED QUESTIONS ### ABOUT MY LOAN What documents and other things do you need for me to apply? Making an application is quick and easy – you just need to have the following documents ready to give your broker: - Current Australian Residency Identification  - 2 recent payslips - Or one current bank statement  Do I need to purchase the car from you? In short the answer is No, you can source your own car. We offer a holistic solution to our customers, from financing to sourcing a vehicle at the most competitive rates and specs that suits you through our vehicle solutions partner – Drive. What is the difference between 1800Approved and a bank? We are a multi award winning independent finance group who believe in helping people achieve their dream or goal with our holistic solution we **compare 40+ Lenders**. Arranging everything from finding the right finance at the best **low interest rate** and a **no deposit** that suits you to sourcing the right vehicle – finding the right vehicle, that suits you, through our vehicle solutions partner – Drive What do your interest rates start at? Interest rates can vary depending on the age of the vehicle you are buying, your credit file, credit score, assets and liabilities. Our rates start **as low as 4.69%*** for new vehicles for business use customers.  * based on a commercial contract for a new vehicle with specific criteria. What is a balloon payment? A balloon payment allows you to reduce your repayments during the term of the car loan by making a once-off lump sum payment at the end of your loan. For example, if you were to take a $30,000 loan over five years with a 30% balloon, your regular repayments at a comparison rate of 8.10% would drop from $609.73 per month to $467.24 per month with the addition of a $9,000 lump sum payment due with your final payment.  Balloon payments are available for cars that are up to five years of age. We will contact you within the last six months of your loan term to discuss your payment options. Your payment options could include re-financing the balloon amount in a new car loan. Alternatively, you could pay this balloon payment from your own funds.  ### APPLICATION AND APPROVAL What is the time frame for approval? Once we receive your online application, you will be contacted by one of our experienced brokers, within 2 business hours. The timeframe from our **high approval rate** to completion can be anything from 1 hour under ideal circumstances. Give us a call on an obligation free discussion with one of our experienced brokers. to walk you through our **fast and easy approval process** What advantages do I have as an ABN customer? If you apply for finance with 1800 Approved as an **ABN** customer you can: - Apply with less documentation,   - Receive discounted interest rates between 0.4 - 3% less than a consumer loan. - Benefit from a tax write off with your finance– we recommend speaking to your financial advisor before you apply.  Can I get a loan if I am bankrupt? Not if you are currently in bankruptcy or a Part 9 or 10 debt agreement. However, if you are discharged we can be able to assist you. Click here for assessment that will not damage your credit score or call on 1800 2777 6899 and talk to one of our experienced brokers to find a solution. Alternatively ### QUESTIONs ABOUT MY CREDIT Do late payments affect my credit score? The short answer is yes, if your repayments are 14 days overdue or more then this will most likely be recorded on your credit score. At 1800 Approved we believe that everyone deserves an opportunity, so give us a call on 1800 2777 6899 an obligation free discussion with one of our experienced brokers. Alternatively, To learn more download our E-book How can I get a loan if I have bad credit? At 1800Approved we believe in assessing your circumstances today and finding a solution that best suits you. We do this with the help of our 40+ lender portfolio, so give us a call on 1800 2777 6899 and talk to one of our experienced brokers to find a solution. Alternatively click here for assessment that will not damage your credit score. Is my credit score effected if I am declined? At 1800 Approved, unlike a bank, we will not show on your credit file as a “declined” if your application is unsuccessful. We do not leave an impressions on your file as part of our assessment. More than 6 enquiries in a 12-month period may affect your application for finance. ![elegibility-with-bg-icon](https://www.1800approved.com.au/hubfs/1800_approved_2019/images/car-loan/elegibility-with-bg-icon.png) ## Eligibility 1. **Be 18 years or over** 2. **Be a permanent resident or an Australian citizen** 3. **Be currently employed** 4. **Must not have any unpaid default over $7000** 5. **Not currently bankrupt, part 9 or 10** ![how-to-apply-with-bg](https://www.1800approved.com.au/hubfs/1800_approved_2019/images/car-loan/how-to-apply-with-bg.png) ## Apply 1. **If you are eligible, click on the 'Apply' button.** 2. **Complete the application in under 3 minutes.** 3. **You will receive a call from one of our experienced brokers.** 4. **Follow our prompts for documentation collection.** ## How It Works ![](https://www.1800approved.com.au/hubfs/1800_approved_2019/images/home/icon-images/resume.png) ![apply-hover](https://www.1800approved.com.au/hubfs/apply-hover.png) #### Apply It takes minutes to make an online application – no lengthy question  ![](https://www.1800approved.com.au/hubfs/1800_approved_2019/images/home/icon-images/settings.png) ![settle-hover](https://www.1800approved.com.au/hubfs/settle-hover.png) #### Settle Work with your dedicated **financial broker** who will find you the best deal  ![](https://www.1800approved.com.au/hubfs/1800_approved_2019/images/home/icon-images/Choose.png) ![choose-hover](https://www.1800approved.com.au/hubfs/choose-hover.png) #### Choose Our vehicle procurement service [DRIVE](https://www.drivewholesale.com.au/) will find you the best vehicle  ![](https://www.1800approved.com.au/hubfs/1800_approved_2019/images/home/icon-images/happiness.png) ![enjoy-hover](https://www.1800approved.com.au/hubfs/enjoy-hover.png) #### Enjoy Once you are approved you can pick up your keys! And, if you get your vehicle with us we will deliver it*  - ![](https://www.1800approved.com.au/hubfs/1800_approved_2019/images/home/icon-images/resume.png) ![apply-hover](https://www.1800approved.com.au/hubfs/apply-hover.png) #### Apply - ![](https://www.1800approved.com.au/hubfs/1800_approved_2019/images/home/icon-images/settings.png) ![settle-hover](https://www.1800approved.com.au/hubfs/settle-hover.png) #### Settle - ![](https://www.1800approved.com.au/hubfs/1800_approved_2019/images/home/icon-images/Choose.png) ![choose-hover](https://www.1800approved.com.au/hubfs/choose-hover.png) #### Choose - ![](https://www.1800approved.com.au/hubfs/1800_approved_2019/images/home/icon-images/happiness.png) ![enjoy-hover](https://www.1800approved.com.au/hubfs/enjoy-hover.png) #### Enjoy It takes minutes to make an online application – no lengthy question  Work with your dedicated **financial broker** who will find you the best deal  Our vehicle procurement service [DRIVE](https://www.drivewholesale.com.au/) will find you the best vehicle  Once you are approved you can pick up your keys! And, if you get your vehicle with us we will deliver it*  ### What our customers are saying ** ** ** ** ** Rated **4.9** in overall satisfaction by ![Google](https://www.1800approved.com.au/hubfs/1800_approved_2016/images/google-sign.png) Google © 2008-2022 Ausloans Pty Ltd. Australian Credit Licence #383999 ![Logo](https://www.1800approved.com.au/hubfs/1800approved-logo-white.png) ![](https://www.facebook.com/tr?id=2099318183729557&ev=PageView&noscript=1) ![](https://www.facebook.com/tr?id=759887617369365&ev=PageView&noscript=1) ![](https://www.facebook.com/tr?id=122106498438777&ev=PageView&noscript=1) ![](https://bat.bing.com/action/0?ti=5128956&Ver=2) [![ClickCease](https://monitor.clickcease.com/stats/stats.aspx)](https://www.clickcease.com) ```json { "@context" : "http://www.schema.org", "@type" : "FinancialService", "address" : { "@type" : "PostalAddress", "addressCountry" : "Australia", "addressLocality" : "Gold Coast", "addressRegion" : "Queensland", "postOfficeBoxNumber" : "4214", "postalCode" : "4214", "streetAddress" : "33 Ereton Dr. Arundel" }, "aggregateRating" : { "@type" : "aggregateRating", "ratingValue" : "4.6", "reviewCount" : "233" }, "areaServed" : "Queensland, New South Wales, Victoria, South Australia, Tasmania, Australian Capital Territory, Northern Territory, Western Australia, Sydney, Perth, Melbourne, Hobart, Darwin, Brisbane, Adelaide, Gold Coast, Canberra, Newcastle, Wollongong, Logan City, Townsville, Geelong, Sunshine Coast, Cairns and Albury/Wodonga", "award" : "Australian Broking Awards - Asset Finance Broker of the Year 2016", "brand" : { "@type" : "Organization", "name" : "1800Approved Finance Solutions" }, "contactPoint" : { "@type" : "ContactPoint", "contactType" : "customer service", "telephone" : "1800277768" }, "description" : "A leading motor vehicle finance broker in Australia since 2008. 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