rdelavictoria, Author at Metro Finance

Benefits of  Non-Bank Lender

Posted on 25 September 202526 September 2025 by rdelavictoria

Discover the benefits of a non-bank lender with Metro Finance. Enjoy tailored solutions, flexible terms, and expert support for both individuals and businesses.

Non-Bank Finance Benefits: Why Choosing an Alternative Lender Makes Sense

Non-bank lenders are growing in popularity as a borrowing alternative to traditional banks. In this blog, we’ll explore some of the key differences between non-bank lenders and banking institutions, as well as looking at what makes non-bank lenders so appealing for a wide variety of borrowers.

What is Non-Bank Finance?

As the name suggests, non-bank finance refers to financing that comes from an institution that isn’t a bank, credit union or building society. Because of how non-bank lenders source funds and structure their business operations, they are often able to offer a more flexible, tailored lending solution for borrowers, even those who might have been previously unsuccessful in obtaining lending or have been deemed ‘higher risk’ by the banks.

Key Benefits of Non-Bank Finance

01 /

Faster and Easier Application Process

Because non-bank lenders are often smaller operations compared to traditional banks, they’re able to move more quickly in the application process as they are often less bogged-down in bureaucracy, procedural red tape and rigid lending algorithms.

02 /

Personalised Service

Smaller teams mean more personalised service. At Metro, Real People, Reliable Finance isn’t just a tagline, it’s how we do business. We pride ourselves on building genuine relationships and delivering personalised service every step of the way.

03 /

Competitive Interest Rates

Smaller institutions mean less overheads, which allow non-bank lenders to pass on these savings to customers and keep their interest rates sharp. Because non-bank lenders secure funding from a variety of sources rather than deposits like a bank, they can react to market trends faster – allowing them to be competitive with typically slower-moving big banking institutions.

04 /

Greater Flexibility

There’s no one-size fits all approach for non-bank lenders. Because each application is assessed individually, usually by a person and not a computer, lending terms and rates can be tailored to suit the individual and their specific needs.

05 /

Great Accessibility for a Wider Range of Borrowers

As we’ve discussed, non-bank lenders are able to offer greater flexibility when it comes to loans, and this also applies to the type of borrowers they can provide lending to.

Self-employed individuals without a regular employee salary that are deemed to be higher risk to bank lenders are some of the borrowers who successfully receive funding from non-bank lenders.

Benefits of Non-Bank Lenders for Businesses

1. Custom Financing for Commercial Needs

Small-medium businesses can also at times find securing finance from a bank difficult because their income is less predictable. Because non-bank lenders are not bound by the same rigid regulations of large banking institutions, they can approve more diverse loan applications, giving business borrowers fast access to funds for important purchases when they need it.

Commercial finance solutions cover a range of business assets and equipment purchases, including:

Many non-bank lenders specialise in financing these types of assets. Talk to one of Metro’s friendly brokers to find out about a range of options suited to your business.

2. Support for Sustainable Business Practises

In recent years, sustainability has become an important part of business operations and a major consideration for customers. Metro Finance is committed to supporting customers on their journey with sustainable business loans tailored to support the transition to more environmentally-friendly technologies such as:

electric vehicles
commercial equipment
battery storage
solar power

In 2024, Metro launched its MetroEco product, which offers discounted rates and flexible terms for a range of environmentally-focused assets and technologies. To find out more, head to the MetroEco page.

Benefits of Non-Bank Lenders for Individuals

1. Affordable Personal Car Loans

All the same benefits apply to car loans with non-bank lenders, including competitive interest rates, personalised service and fast, flexible loans. Because many car loans are secured against the vehicle being financed, they are more readily accessible to a variety of individuals and businesses with non-bank lenders. To find out more about car loans with Metro, click here.

2. Novated Leases

Novated leases are a great way for employees to get into the car/s of their choosing through their employer and a financier, while taking advantage of a range of tax benefits and savings. When it comes to novated leasing with non-bank lenders, there are lots of options to choose from in terms of lease terms and payment structures. To find out about Metro’s novated leasing options, follow the link here.

Contact Metro Finance for Expert Help

Want to know more? Chat with a Metro expert or one of our friendly brokers to learn more about the type of finance products we offer, and how we can create a tailored financial option to suit your needs.

Secured Car Loans - Frequently Asked Questions

Can I get a secured car loan with a poor credit score?

Contact your asset finance broker who can assist you with applying a commercial finance loan or alternatively you are welcome to contact Metro who can provide you with a list of accredited Metro brokers who you can get in touch to arrange an application.

What happens if I can't make the payments on my secured car loan?

If you’re unable to make payments on your secured car loan, it’s important to act quickly. Since your car serves as collateral for the loan, the lender has the right to take back the car and sell it to recover the money you owe. 

Before things get to that stage, many lenders are willing to work with you if you’re facing financial difficulties. If you’re struggling to make payments, it’s a good idea to contact your lender as soon as possible to discuss options like adjusting your payment plan or temporarily pausing payments (hardship arrangements). Ignoring the issue could lead to penalty fees and damage to your credit score, making future borrowing more difficult.

Can I use a secured car loan to buy a used car?

While the exact timeframe can vary depending on various factors, including the completeness of the application and the complexity of the financing request, we strive to provide a decision as quickly as possible.

Hidden Costs of Vehicle Ownership and How Financing Can Help

Posted on 25 September 202526 September 2025 by rdelavictoria

Discover the hidden costs of car ownership, from depreciation to insurance, and learn how financing options like car loans and novated leasing can help manage expenses.

Whether we like it or not, our beloved vehicles are a depreciating asset, which means by owning one you are losing money – even as it sits parked.

Still, owning a vehicle remains one of the biggest financial investments you can make in your lifetime, which is why it’s important to understand the total cost of ownership for a vehicle, which goes far beyond its sticker price.

In this blog, we’ll take-a-look at some of the costs incurred in vehicle ownership to help with better financial planning, as well as talking about some of the different finance options that may assist in managing vehicle expenses.

The true cost of vehicle ownership

As we’ve mentioned, the true cost of owning a vehicle goes beyond what you pay for it at the time of purchase. Running costs can extend to important and in some cases, mandatory expenses for the life of the vehicle.

Many would-be owners are surprised to learn how much it costs to own a vehicle, as expenses can add up in the long run; especially as a vehicle gets older and endures normal wear and tear.

Hidden costs of owning a vehicle

Behind every vehicle is a long list of additional expenses. Let’s unpack some of the major hidden costs that can catch owners by surprise.

1. Depreciation – The Biggest Hidden Expense

Regardless of what a vehicle is used for, and how many kilometres it is driven, in most cases it will remain a depreciating asset. The age of the vehicle is one of the biggest factors in depreciation, as is its odometer reading. Vehicles can be quickly superseded too – with new models releasing constantly, each with newer technologies and features than before.

While some people may buy a vehicle with the expectation it will increase in value over time (as in the case of rare sports cars and vintage models), for most passenger vehicles they will never be worth more than the day they are first registered.

2. Insurance Costs – More Than Just The Basics

An important cost to factor in for any vehicle purchase is insurance – with compulsory third party (CTP) insurance, which covers the other driver in the event of an accident if you’re at fault – being a pre-requisite for registration. Most people opt to take out further levels of protection, known as comprehensive insurance, to cover their own vehicles against things like accidental damage and theft, adding to ongoing expenses to keep a vehicle on the road.

Remember, insurance costs can vary based on factors like the primary driver’s age, location of where the vehicle will usually be parked, and how far it is expected to travel throughout the year – so it always pays to get a number of quotes from insurance providers based on your chosen vehicle and compare the different policy inclusions as well as their costs.

3. Maintenance and Repairs – Unexpected Expenses

All cars need regular maintenance to keep them running at optimal levels and to ensure fuel efficiency, continued safety and roadworthiness, which is why maintenance is a crucial, and often costly, part of vehicle ownership.

While many manufacturers offer capped-price servicing or pre-purchased servicing packages for several years, this is still an additional outlay beyond the purchase of a new or used vehicle and has to be factored in when you’re budgeting. Other important items not covered in a regular service may include tyres, brake pads, engine fluids and windscreen wipers.

4. Registration, Roadside Assistance & Government Fees

Much like insurance and maintenance, vehicle registration is mandatory, and an ongoing expense vehicle owners need to account for when adding up the total cost of ownership. Registration is paid annually and as mentioned also requires compulsory CTP insurance.

Vehicles over a certain age also need an annual roadworthiness inspection from a certified mechanic (often referred to as a pink slip), which can also add up – aside from the cost of the inspection, any urgent repairs may be required to be completed before a vehicle can be registered. This is where many owners can get caught out.

5. Fuel and Running Costs

Whether your vehicle requires petrol, diesel fuel electricity to run – fuel and running costs are an ongoing expense for vehicle owners, which is why it’s important to understand your own needs from a vehicle (i.e. short or long distance, towing etc) and selecting a vehicle that can support that.

For example, electric vehicles are becoming an increasingly popular option for drivers who usually drive low kilometres during a week and have the ability to charge at home, where they might even be able elect when they charge their vehicle to take advantage of off-peak periods to further reduce costs.
Metro Finance also supports the transition to electric mobility, with a range of finance packages to support sustainable technologies including EVs, charging, solar energy and battery storage.

How vehicle financing can help manage these costs

Rather than purchasing a vehicle outright with a lump-sum payment, there are several finance options that can help take the sting out of up-front costs, and in some instances, even reduce your tax liability.

1. Car Loans – Spreading the Cost Over Time

One of the most common forms of financing, a car loan helps buyers get into the new or used vehicle of their choice now, while not having to incur all the upfront costs in one hit.
Loans are usually either secured, where the vehicle is used as collateral against the loan until it is paid off, or unsecured – usually for a much lower loan amount. Another common feature of vehicle loans is the option for a balloon payment at the end of the loan to help reduce monthly repayments.

2. Novated Leasing – A Cost-Effective Option for Employees

A novated lease is a popular way for employees to get into a vehicle while taking advantage of the many tax benefits they provide.

Established as a three-way arrangement between an employee, their employer and a financier, a novated lease bundles all of a car’s expenses together (repayments, registration, fuel, insurance, servicing etc) in the form of a monthly payment, which is deducted from an employee’s before-tax income by their employer, who makes repayments on their employee’s behalf – in-turn reducing the employee’s taxable income.

In some ways, a novated lease can offset some of the potential downsides of depreciation, as the employee doesn’t own the vehicle, but rather leases it from a financier. At the end of the agreed lease term, the employee may wish to change vehicles and start a new lease or even lease additional vehicles for their immediate family. This is why novated leases are a popular and cost-effective way to get access to a vehicle of choice.

3. Commercial Finance for Business Owners

Unlike a personal or car loan for an individual, commercial finance is specifically for business owners looking to purchase assets for their operations, including passenger vehicles, light and heavy commercial vehicles and agricultural equipment.

Some of the common benefits of commercial finance include faster access to funds, a wider range of financial options as well as potentially lower interest rates compared to a normal bank loan. The other great advantage for businesses is the potential for great tax benefits that come with utilising a commercial finance option over other products.

Contact Metro Finance for Expert Help

Secured Car Loans - Frequently Asked Questions

Can I get a secured car loan with a poor credit score?

What happens if I can't make the payments on my secured car loan?

Can I use a secured car loan to buy a used car?

Car Loan Process Explained: What to Know Before Applying

Posted on 25 September 202526 September 2025 by rdelavictoria

Learn key steps, benefits, and tips for financing your business vehicle. Explore your options with Metro Finance.

Car Loan Process Explained - Things to know before applying for a business car loan

A car is an important tool of trade, just like any other piece of business equipment – whether it’s to facilitate travel, move equipment, or incentivise staff. Whatever a business vehicle might be used for, it’s important to understand the types of finance options are available, and what they will mean for your business over time.

In this blog we’ll take a look at how to get finance for a car, along with what the application process might look like for you.

What is a Business Car Loan?

Put simply, a business car loan is a form of finance that offers a range of businesses, from small enterprises to well-established corporations, the ability to purchase a new or used vehicle to perform a variety of business functions.

Business car loans can range with a loan value between $10,000-$500,000 with terms typically ranging from 2-5 years.

Key Benefits of Business Car Loans

While each business’s needs are unique, vehicle finance can unlock a range of benefits, including:

Tax benefits: as a business tool of trade, you may be able to claim interest and other costs as a tax deduction.
Cashflow management:from reducing the initial outlay of the full purchase price of the vehicle, to establishing regular repayments, a loan can help keep cashflow steady and money within the business.
Access to better vehicle options: aside from enabling greater purchasing power through a loan, your lender might even be able to offer you fleet discounts or instant access to popular vehicle models that are waitlisted or in high-demand.
Balloon payment: by establishing an agreed balloon payment at the end of the loan term, you may be able to reduce your monthly repayments.

Step-by-Step Guide to the Car Loan Process

While the loan application process can appear daunting, through careful planning and diligent research you can secure the funding you need. Here are some handy tips to follow in your application journey:

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Assess Your Business Needs

It sounds simple, but it’s very important to first understand your business needs in terms of acquiring a vehicle – this should include the type of vehicle that you think you’ll need, as well as what your current budget is.

02 /

Research Loan Options

Choosing the right loan and understanding interest and repayment terms, is dependent on doing your research and shopping around to get the best deal. Talk to a Metro broker to find out how to get vehicle financing and what options from Metro Finance might be right for you.

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Gather Required Documentation

Whichever option you choose, you will need to show evidence that your business can make regular repayments and is financially able to take out a loan. Before you submit a loan application, either directly with a financier or via a broker, you will need to have a selection of up-to-date documents, including financial statements, proof of income and business operations; so have them ready when you start your application.

04 /

Apply for a Loan

Now that you’ve established a business case for a vehicle purchase, picked a loan package that is right for you and have the required documentation ready, it’s time to apply for the loan itself.

Ask questions with your broker or the financier, and make sure you understand everything that is required of the business to maintain the loan. It is incumbent on you to answer truthfully and accurately to all application questions.

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Approval and Vehicle Purchase

Now that your loan is submitted you just have to wait for approval from the lender – approval timelines should be communicated to you at the time of applying. Once approved (hooray!), it’s time to purchase your chosen vehicle, either via a dealership, a broker, or private sale.

Just as in shopping around to get the best finance rate, it also pays to research vehicle options and ask for a better deal. Remember, any money saved at the time of purchase can reduce the loan amount and any future repayments, so don’t be afraid to haggle!

Things to Consider Before Applying for a Car Loan

1. Make sure your financials are current and up-to-date

2. Make sure your business has the funds to cover repayments and any fees

3. Maintain a good credit history – you can do this by making sure you pay your debts on time

4. Look at all finance options. If a business car loan doesn’t suit your business needs there are other options, such as vehicle leasing

5. Ask questions! If you’re working with a broker they will be able to guide you through the process and answer any questions you may have

Alternatives to Traditional Car Loans

As we mentioned, a business car loan is not the only finance option available to secure a vehicle; there are others such as novated leases and commercial car loans, that offer a variety of options and terms, along with differing tax benefits and impacts to business cashflow.

Metro has a range of options to suit all business and personal needs, so why not start a conversation with one of Metro’s friendly brokers? A Metro broker will be able to guide you through the loan application process and answer any questions you may have. To get chatting, get in touch here, or call 1300 362 627.

Common Mistakes to Avoid When Applying for a Car Loan

While there is no one-size-fits-all approach when it comes to applying for a business car loan, there are some common mistakes to avoid to ensure the best outcome:

1. Underestimating additional costs

A car is a business asset that needs regular up-keep, so it’s important to factor in things like insurance and maintenance to get the full picture of what it will cost your business for the life of the loan.

2. Missing deadlines for repayments

Aside from potentially attracting late fees, this can also affect your future credit rating, so make sure you have the funds in place to meet the repayment schedule.

3. Not anticipating business needs

It sounds simple, but understanding your business needs now and into the future will help determine if vehicle finance is right for you. If you only have a need for a vehicle in the short-term, it may be worth looking at alternative options, such as a short-term rental.

Contact Metro Finance for Expert Help

Secured Car Loans - Frequently Asked Questions

Can I get a secured car loan with a poor credit score?

What happens if I can't make the payments on my secured car loan?

Can I use a secured car loan to buy a used car?

How to Finance a Car

Posted on 22 September 202525 September 2025 by rdelavictoria

How to Finance a Car

For many people in Australia, owning a car is more than a nice-to-have, it’s a necessity. Cars are more than just expensive assets, they can be a gateway to a range of mobility solutions for work, travel and the basic running of our day-to-day lives. Australians purchase more than 1 million new cars each year on average, and just as there is a seemingly endless variety of brands, vehicles and technologies to choose from, there are lots of ways for you to get into the car of your dreams.

In this article, we’ll look at some of the main car financing options in Australia, and help you find a tailored solution to suit your needs.

What is Car Financing?

Car financing is a way for you to get into the vehicle of your choice, without having to stump-up the cash to purchase it outright. There are many reasons why someone would choose car financing over an outright purchase: some of main ones include reducing the impact on household or business cashflow, enjoying a range of savings and tax benefits, or taking advantage of a salary sacrificing package with an employer.

Let’s look at how to finance a car with some of the main options available in Australia.

Types of Car Financing Options in Australia

1. Car Loans

A car loan is one of the most common forms of financing. A lender provides the customer with funds to purchase a vehicle, with the vehicle itself used as security on the loan, known as a secured loan.

This option provides you with the choice of flexible loan terns and competitive interest rates, and the possibility of having a balloon payment at the end of the loan term to reduce loan repayments. The downside with this option is that it might not include other vehicle expenses and running costs, such as insurance, fuel and maintenance; and repayments may come out of your after-tax income, rather than other financing options where repayments may come out before.

2. Novated Lease

Also known as salary packaging or salary sacrifice, a novated lease is a three-way agreement between you, a leasing or finance company, and your employer who agrees to make car loan repayments on your behalf from your pre-tax salary.

With a novated lease, you have the surety and consistency of regular loan repayments, all of the vehicle’s expenses are included in the lease repayment (such as fuel, insurance, registration and maintenance), and because repayments are made pre-tax they could result in significant tax savings. You can also lease more than one vehicle, depending on your package with your employer, all included in one monthly repayment.

Still looking at the best way to a finance a car in Australia? Check out some of the key factors to consider below.

3. Electric Vehicle (EV) Financing

As the world continues to embrace electric mobility, there are many different finance options and incentives to get you behind the wheel of one yourself. The Government is also behind this push and are supporting some lenders in order to facilitate lower-cost loan options for EVs, including Metro Finance.
Our MetroEco product offers customers a range of reduced and flexible rates and terms on electric vehicles as well as other sustainable technologies, including at-home charging, solar energy and battery storage.

How to Choose the Best Way to Finance a Car

There are many different factors to consider when selecting a financing option – here are some you need to think about when looking to find the best way to finance a car for your needs:

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Interest Rates

It’s important to shop around to make sure you’re getting the best rate when it comes to the interest charged on a potential loan, and whether the interest rate is fixed throughout the term, or variable, based on market factors outside of your control.

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Loan term

Most loan terms are between three to five years, but they can differ. Just like interest rates, the duration of your loan will also affect how much your repayments will cost you over the term – be sure to factor this in, and how you might be placed financially across the entirety of the loan period, not just at the time of applying.

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Additional fees

Always read the fine print! It’s critical to understand all your obligations and liabilities when entering into a loan or lease agreement and being comfortable with any additional fees – which might include late payment or setup fees, or penalties for paying off the loan early.

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Eligibility requirements

Lenders will have different eligibility requirements depending on the finance product you choose. Typically eligibility requirements are in place for both the vehicle, whethers it’s new or used, and the person wishing to buy it. To find out more about eligibility for a car loan with Metro, head here.

Steps to Get a Car Loan

1. Assess Your Budget

As with any financial decision or purchase, it’s important to assess your own budget before committing. Remember – a loan or lease may have a three or even five-year term, so you need to be confident that you will be able to make repayments throughout the agreement period, cover any final balloon payments, as well as keeping the car running and maintained.

2. Compare Finance Options

Not only is it wise to understand the types of finance options on offer, it’s also a good idea to shop around to make sure you’re getting the best deal to suit your needs. There are plenty of online tools to help you compare lenders and their products.

3. Prepare Your Documents

Any financial product or agreement will require documentation to confirm your identity and suitability. Make sure you understand the eligibility requirements, and ensure you have the right documents to support your application. Your accountant, financial adviser or employer may be able to help with this, as well as a broker, if you’re using one.

4. Apply for Financing

Once you’ve decided and are ready to purchase/start a loan, submit your paperwork and supporting documents. Once again, it always helps to have your financial team support you through the application process.

Tips for Financing a Car Wisely

While purchasing or leasing a new car can be exciting, it’s important to take some of the emotion out of the decision and really think about your needs. Some questions you should be asking yourself include:

Is this the right vehicle for my needs?
Can I afford to pay for a loan/lease for the entire team?
What about running costs and maintenance?
What is the best way to finance the vehicle to benefit my budget and cashflow?
Am I comfortable with the loan/lease terms and understand all of my financial obligations?
What do I intend to do with the vehicle at the end of the term? Keep it? Sell it? Trade it in for a new vehicle?
(In the case of a novated lease) What happens if I change employers?

Contact Metro Finance for Expert Help

Secured Car Loans - Frequently Asked Questions

Can I get a secured car loan with a poor credit score?

What happens if I can't make the payments on my secured car loan?

Can I use a secured car loan to buy a used car?

What Is A Secured Car Loan: Everything You Need to Know

Posted on 10 July 20255 August 2025 by rdelavictoria

Considering a secured car loan? Our detailed guide explains how secured car loans work and offers tips for how to find the best loan product for your needs.

Looking for extra funds to get behind the wheel of a new car? You may have come across a range of options in your research, including a secured and unsecured car loan from a lender. But what are the main differences?

What is a secured car loan?

As the name suggests, a secured car loan is offered when a bank or lender has security over the asset it is providing a loan for. In this case, the car. If for whatever reason you were unable to repay the loan, the lender would be able to resell your vehicle to recoup the money it loaned you.

There are several key reasons why secured car loans are popular with customers looking to obtain finance on a new car, which we’ll look at in the following sections.

How secured car loans differ from unsecured car loans

Ultimately, the difference between secured and unsecured car loans is whether the bank or lender has security over the car you’re financing. With an unsecured car loan, the lender has no security over the vehicle, and no straightforward way to recover its costs if you cannot make the repayments, which means that it will usually offer lower borrowing limits, higher interest rates, and shorter loan-repayment terms.

Choose a secured car loan if you’re looking to borrow a higher amount, and would like to pay the loan off over an extended period of time. Because your vehicle would be used as security against the loan, lenders may be more lenient on borrowers with lower credit scores, and who have found getting loan approval tough elsewhere.

Advantages of secured car loans

In a word: savings! The main benefit of a secured car loan for you is the ability to borrow higher amounts, and potentially lower interest rates on repayments. Because the bank or lender has security over the vehicle, it may also offer longer repayment terms than with an unsecured car loan.

What are the risks of Secured Car Loans?

he obvious risk to secured car loans is the potential for your vehicle to be repossessed should you not be able to make the loan repayments. However, some other aspects of the loan you need to be aware of are that you need to have full insurance on the vehicle and, depending on the loan repayments, you may end up owing more than what the vehicle is worth at the end of the loan if you opt to make a final balloon payment.

The vehicle’s value at the end of the loan term is dependent on several factors, including its condition and residual value – which is determined by the type of vehicle and its brand reputation, its popularity in the market, and how many examples of the car for sale at the time.

Eligibility criteria for secured car loans

Like any loan or financial product, lenders have an eligibility criteria you must meet in order to access finance for a new car.
To be approved for a loan with Metro Finance, you need to meet the following eligibility criteria:

01 /

Age of  Vehicle:

Maximum age of vehicle is 15 years at end of term

02 /

Acceptable  Licence Types:

Learner, P1, P2 and Full licence holders

03 /

Acceptable Residency Status:

Australian Citizens and Permanent Residents

04 /

Minimum  Equifax Score:

500

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Minimum Age  of Borrower:

18 Years

06 /

Non-property backed applicants:

Accepted

To find out more about secured car loans offered by Metro, check out https://metrofin.com.au/personal-finance/car-loans/

How to apply for  a secured car loan

Think you meet the eligibility criteria and keen to get the ball rolling on your new car purchase? Getting started couldn’t be simpler!

Get in touch with your finance broker, bank lender or Metro broker and they’ll handle the rest. Bear in mind, your broker may ask a range of questions about you, your financial situation and the type of vehicle you’re looking for – they may also ask you to provide a documents to verify your answers and establish your suitability for a loan.

Top tip: Ask lots of questions and don’t be afraid to get a second opinion. It’s also a good idea to discuss any purchases or potential financial arrangements with your accountant first. A Metro broker will be able to guide you through this process, and can support you throughout your finance application – to talk to a Metro broker, click on the ‘Talk to a broker’ button at the top of the page, or click here.

Secured car loan repayment option

There is no one-size-fits-all solution when it comes to secured car loans, as they are tailored to suit you and your needs specifically. However, there are some common elements and options that feature as part of a secured car loan:

01 /

Interest rates

This is paid on top of the purchase amount and forms part of your monthly repayments. Make sure to shop around to get the best rate.

02 /

Prepayment penalties

Some car loans may have penalties if you choose to pay off the loan early, so make sure your check and understand these penalties are, if any, before accepting a loan offer.

03 /

Balloon Payments

This is a lump sum payable at the end of the loan, which is a way of reducing your monthly loan repayments. At the end of the loan, you can opt to pay the full balloon payment, or apply to further finance the amount.

To find out more about balloon repayments, head to https://metrofin.com.au/news/what-is-balloon-payment-car-loan/

04 /

Fees

Loans often attract a number of fees from lenders, and can differ depending on the car loan product. Some fees your secured car loan might include are: 

Application fees: These are charges for processing your car loan application.
Origination fees: This fee covers the administrative costs of setting up your car loan.
Documentation fees: These fees are associated with preparing and processing any car loan documents that are required.
Title and registration fees: These fees cover the cost of transferring the vehicle’s title and registering it in your name.
Late payment fees: If you fail to make your loan payments on time, you may be subject to late payment fees.

Remember, it’s important to review and understand all terms and conditions for your loan, and any fees associated with it

Tips for choosing the right secured car loans

While the prospect of getting behind the wheel of a new vehicle is exciting, it’s important to do your homework.

Consider the options and the type of loan features that work best for you in terms of the length of the loan, interest rates, fees and whether you’d like to make a final balloon payment. Based on the purchase price of the car you’re interested in and how quickly you’d like to pay off a loan, you may be eligible for an unsecured loan with no collateral on the vehicle, as opposed to a secured loan that uses the vehicle as security.

The biggest thing to consider is your own financial situation, as your loan options will largely depend on your ability to make loan repayments and your credit score.

Some effective ways of improving your credit score might include setting up automatic bill payments to ensure you don’t miss them and reducing the amount you owe.

Talk to your accountant or financial adviser about ways to improve your financial situation if it’s a concern to you. To find out more about the kinds of loans offered by Metro, check out: https://metrofin.com.au/personal-finance/  While there are lots of options available when it comes to financing your new vehicle purchase, secured loans are a great way to get the car you want with a range of flexible options designed to save you money in monthly repayments.

By understanding the differences between secured and unsecured car loans, and some of the main options available to you, you can find a tailor-made option that suits you and your budget.
Remember, it’s always best to first talk to your accountant and broker about the best solution for your needs, and if you’re still unsure, don’t be afraid to get another opinion.

Secured Car Loans - Frequently Asked Questions

Can I used a secured car loan to purchase both new and used vehicles?

Yes. There are many loan options available for both new and used cars. Talk to your own broker or a Metro broker about loan options that might be right for you.

What security is needed for the loan?

With a secured car loan, the asset itself is used to secure the loan.

What if the car I’m looking to buy is mainly for business use?

If your loan will be used predominantly for business, you may be better choosing a Commercial or Novated product.

Metro’s Commercial loans are the best car loans for businesses, providing flexible terms and features to support your commercial vehicle finance requirements. Novated car loans enable employees to finance their vehicles through salary packaging arrangements through their employer.

To find out more about Metro’s business finance products, check out https://metrofin.com.au/commercial-finance/

What happens if I can’t make the repayments on my secured car loan?

While nobody can predict the future, it’s a good idea to understand the terms of a loan before entering into one, and be confident that you can meet the minimum repayment requirements.

Many lenders also offer support during financial hardship – talk to them if you’re experiencing any difficulties in making loan repayments.

If you’re unsure whether you’ll be able to continue to make repayments for the length of the loan, it’s best to check with your accountant and broker to see if a loan is the right solution for you.

ENDS

How Asset Finance Works: Step-by-Step Guide

Posted on 7 July 202517 July 2025 by rdelavictoria

Discover how asset finance works and how businesses can use it to acquire essential equipment and vehicles.

Learn about financing options, benefits, and key steps.

When running a business, the old saying is true: time is money. In order to meet its market demands, both in terms of product and services, businesses need to be agile to seize new opportunities, tackle challenges head-on and look for ways to innovate.

In many instances, a business’s assets – it’s tools of trade – are essential in maintaining its service offering in order to generate revenue.

That’s where asset finance can help. Regardless of industry, asset finance products can support businesses with fast access to funds so that can acquire a range of high-value assets – like vehicles and new equipment – when they need it most.

In this blog we’ll take a deep dive into the types of asset finance products available, and what businesses can use them to purchase.

What is Asset Finance?

In a nutshell, tertiary asset finance products are designed to help businesses acquire high-value items they need.

Businesses use asset finance as a cost-effective way to get business-essential tools and items when needed, without the hefty outlay of an up-front purchase. Some of the assets businesses may choose to finance include vehicles, heavy machinery and tools of trade like specialist industrial equipment.

Key Benefits of Asset Finance

Aside from the immediate cost savings often attributed to sustainable assets, there are several other key advantages when it comes to financing green equipment, including:

01 /

Improved Cash Flow

Regular loan or lease payments are made over time, as opposed to one lump sum.

02 /

Access to High Value Assets

Businesses can use finance products to get assets they may not have the liquidity to purchase outright.

03 /

Tax Advantages

Like many financial products for business assets, businesses may be able to benefit from a range of tax advantages, such as claiming asset depreciation and any interest accrued on the loan.

04 /

Flexibility in Financing Options

Because asset finance products are tailored to suit each individual business’s needs and the kind of assets they require, there is great flexibility in options both in terms of the type of finance available, and how a payment schedule is structured.

How Asset Finance Works – Step by Step

Asset finance is a way for businesses to acquire necessary equipment, vehicles and machinery without large, and often unfeasible, upfront costs.

01 /

Check Your Eligibility

As with any financial decision whether it’s business or personal, it’s important to always do your homework. Some things to check before applying for asset finance include:

Your business status (does it have a valid Australian Business Number (ABN)?
Whether your business is registered for GST
What you intend to use the asset/s for – i.e. is it mainly for business use?
What products and offers available to your business

02 /

Make and Enquiry and Talk to an Expert

Once you’ve worked out what you need and what asset finance product is right for your business, it’s time to talk to the experts. At Metro, we use brokers to support our customers. A Metro broker can explain the range of products we have available and take you through every step of the application process.
To find out more or talk to one of our award-winning brokers, click here.

03 /

Sign Documents and Collect Your Asset

Once you’ve received an asset finance offer from Metro or another financier, it’s time to sign the loan or lease agreement based on the terms and price you’ve discussed with your broker. Once completed and a final invoice for the purchase of the asset is provided to the financier, it’s time to collect your asset and put it to work!

Types of Asset Finance Available

As we’ve mentioned, there are a number of different assent finance options available to businesses, each with their own benefits and payment structures. At Metro, the two main asset finance products we offer are commercial finance agreements, and finance leasing.

Some features that differ between loans and leases typically comes down to who has ownership over the asset. In the case of a loan, it is usually the business that retains ownership after all repayments and all final balloon payments have been made; whereas with a lease the asset is owned by the financier.

Commercial Finance Agreements Product Features:

Loan value available from $10,000 to $1M
Loan terms ranging from 2 to 5 years
No annual or account keeping fees
Competitive fixed interest rates

Choose this tertiary equipment finance product if you are looking for a straightforward and cost-effective financing solution.

Finance Lease Product Features:

Loan terms ranging from 2 to 5 years for business purposes only
Loans from $10,000 to 1M
No annual or account keeping fees
Repayments by monthly direct debit
Potential tax benefits

Choose this tertiary asset finance product if you need to keep your equipment up to date whilst potentially freeing up capital.

Who is Asset Finance Suitable For?

Asset finance is designed for businesses of all shapes and sizes and is really only limited to the type of assets they require. Because the asset itself is often used to secure the loan, meaning that no other form of security is required to obtain funding, it can be a great solution for both small businesses and larger enterprises.

Sectors that require vehicles, equipment and the latest tools-of-trade, such as construction, transport, agriculture and healthcare industries, regularly use asset finance products to keep their businesses running.

Commercial Asset Finance vs. Personal Asset Finance

As the names suggest, the biggest differences between commercial asset finance vs personal asset finance is that one is for businesses, while the other is for individuals.

Personal asset finance is primarily offered to individuals for vehicles and, in the case of Metro Finance’s MetroEco product, also extends to vehicle chargers and solar technology, whereas commercial asset finance extends to machinery and high-value industry equipment.

In both instances the asset itself may be used as security against the loan or lease, offering higher borrowing power.

How to Choose the Right Asset Finance Provider

As we’ve discussed, there are lots of options out there when it comes to asset finance. It’s important to understand your own business requirements for an asset first and then look at what products and offers may be available to you.

With any financial decision, it’s always important to get expert advice and understand the terms and any inclusions for a financial product you may take on.

Get Started with Asset Finance Today

Got a question or need help acquiring an important business asset? A Metro broker can help guide you through the asset finance application process and help get you and your business the asset/s it needs.  
With a range of tailored products to choose from with great rates and flexible terms, one of our friendly brokers will help you find a solution that’s right for you.