Car loan budgeting tricks you never even knew about...

Concerned about loan payments on a big bill month, worried about going on maternity leave, thinking you would like your payments seasonally? Subject to credit approval with lender,  there are a number of other structured repayment options which can be built into the repayment arrangement on a consumer loan /chattel Mortgage / HP / Lease;  Some structured loan examples –

·         Drivers/Anniversary package – Nil repayment on the vehicle anniversary of the purchase for the duration of the loan (to assist with registration and servicing costs)

·         Family Package - An extra $50 per week is added to the repayment amount for the first 9 months, followed by significantly reduced payments for 12 months to accommodate maternity leave, then returning to the standard repayment amount for the remainder of the loan.

·         Equity Package - Designed to increase the repayment commitment in the first two years of the loan to help address potential minus equity. The extra repayment amount can be customised for the first and second 12 month periods, reducing to the standard amount in the third 12 month period, followed by lower repayments for the remainder of the loan.

·         Tradie’s Package - Half repayment every January and February for the duration of the loan to accommodate the anticipated Tradespersons fluctuating cash flow over the Christmas / New Year period.

·         GST – GST component of an equipment purchase is built into the (say) 4th month of a contract as a repayment after it has been claimed back in their BAS;

·         Seasonal Payments – Common when lending for Agri businesses and those effected by seasonal conditions (such as the ‘Wet Season’ in the tropics) where payment/s are structured to coincide with receipt of income (e.g. one annual payment due when Wool Cheque is received). .

·         High Start Payments – Payments can be accelerated in (say) the first 12 months to coincide with increased income

·         Low start Payments - Payments can be reduced to be increased at a later date to coincide with a known event that will allow higher payments to be met at that time, not winning the lottery but, say, another loan being repaid or a property settlement being finalised. 

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