Low Doc Car Loans
Just like you, everyone has a dream car. However, getting it remains challenging, thanks to the considerable cost associated with it. Even more, saving up for it just seems to be taking longer than you would love. As such, you are getting less interested in purchasing your dream car. Even when you tried out the traditional loaning option, it did not seem to work.
Now, that is not the end of the road. You can side-line the traditional loaning option and get right to purchasing your dream car through a low doc car loan.
What Is A Low Doc Car Loan?
This is a financing option that allows you to enjoy even easier access to the funds required to purchase your dream car. All you need to do is get a willing lender, apply, and receive the cost price. Afterwards, you can commit to a repayment schedule.
While this sounds like the regular finance options, the low doc option is different. This is because it requires less documentation and formalities from you. As such, it makes it perfect for self-employed individuals who do not depend on a regular income.
Precisely, you do not need a regular payslip from your employee to access this loan. This option does away with most of the regular and standard requirements. All you will need is a commitment to pay and usually a letter that supports your ability to pay, usually from an accountant.
Now, although you enjoy less paperwork with this option, you will be required to pay a higher interest rate. You might also need to provide some security, either through your car. In some cases, other assets might suffice.
Advantages of Low Doc Car Loans
When you opt for a low doc car loan, you stand to enjoy various benefits. They include:
- Minimal documentation
- Tax breaks and GST for the holder of ABN
- Fixed interest rates
- Flexible repayment structure
- Long term repayment, up to seven years
- As much as 35 per cent balloon payment
Who Can Use Low Doc Car Loans?
This finance option is best suited for individuals who are self-employed or those who run small businesses. You can also use it if you are a contractor or freelancer. So, you can use it if you fall under any of the following categories.
- App Developers
- Event planners
- Fashion Designers
- Web Designers
Low Doc Car Loan Requirement
To get a low doc car loan, it would be best if you applied through specialist lenders. Usually, the bank is not your best bet. You will then need to sign an income declaration. This provides an overview of your income. Regardless, since it is merely low doc, you need to satisfy certain requirements. They include:
- An ABN
- Residency or Permanent Citizenship
- Ability to satisfy your repayment obligations
Usually, to ascertain the last requirement, you’ll need to provide an overview of the flowing.
- Your finances
- Your income generation system
- Your assets
- Present debts and loan