Cars On Finance

Cars On Finance

Getting cars on finance can be a daunting endeavour for first-time car owners, especially if they plan on doing so through online loaning. Cars are an essential asset, especially in suburban and rural areas where public transport is not as accessible. But does getting a new car on finance affect certain aspects of your ownership?

Here are some good points to keep in mind when getting a car for finance through car finance companies.

Is it possible to modify a car on finance?

Any necessary repairs to cars on finance are technically a modification, and you should be able to take your car in for repairs whenever you need to. Outside of repairs, however, we wouldn’t advise making any drastic aesthetic or utility changes to your car on finance.

Here are two reasons why.

If it’s an older car, you may need to save up for repairs

Used cars are sometimes the only way we can get our dream vehicle. There’s an allure to vintage cars that’s irresistible, and getting them second-hand may be more practical financially than a dealership import.

There are repairs to consider, on the other hand. If you’re looking into getting vintage cars on finance, you need to consider the cost of updating them to current regulation standards. These modifications can cost a pretty penny or two, and a working engine or new brake lines are more valuable in the immediate future.

You may even want to consider green loans to finance a car online if you plan on making your vintage car more environment-friendly. You can always get a new paint job after the necessary repairs are completed.

It could affect your car’s insurance

If you’re getting cars on finance as a stop-gap between bigger vehicle investments – say, a small four-seater while you’re saving for a more spacious family-sized SUV – committing too many changes to your car could make it less desirable to second-hand car dealerships that finance resales, or even affect its insurance coverage.

Car insurance can be complicated, and you definitely don’t want to lose coverage while you’re still paying for the car on finance. There may be clauses in your policy that relieves your insurance company of responsibility if you make certain changes to your car.

Can you trade in a new car on finance?

We wouldn’t advise it for cars on finance – it can turn out to be more trouble than it’s worth.

Whether you plan on selling your car or trading it in at a dealership for a different vehicle, it’s best practice to complete your car instalment payments. If you plan to sell your car despite ongoing loan obligations, you could find yourself in legal trouble if creditors demand repayments from the new owners instead.

Whether it’s cars on finance or caravan holidays, responsible credit management is a must.

Stay responsible with a credit history report

Another method of staying on top of your credit management is by regularly checking your credit history. Data security risks run rampant these days, and you could find yourself a victim of identity theft without realising it.

If you’re being hounded by creditors for a new car instalment or debts that you’re certain you never signed up for, your personal information may have been compromised.

SocietyOne offers valuable resources such as our Credit Score tool – powered by our partnership with Experian, where you can get your credit score for free and accurately review it in real-time.

We also have a club that’s free to join and obligation-free, meaning you don’t need an active loan or ongoing application to take advantage of its resources. The club offers powerful insights for progressing your credit rating to the next level.

The best offence against identity theft is diligent defence, so sign up for the Credit Score Club today.

Are payments for cars on finance tax-deductible?

We do not dispense legal advice regarding taxes on cars on finance. We advise that you consult with an accounting or taxation professional to clarify whether or not your finance vehicle payments qualify as a tax deduction.

What we can say is this: if you end up owing tax, it may come down to your declared properties or taxable incomes. Depending on how much you earn in a year and where you gain your income from, the state may levy higher taxes than you may have previously anticipated. These taxes may cover properties involved in the conduct of your business or work, and commercial vehicles still under an interest-free car loan may be considered taxable.

If you’re curious if other credit obligations, like loans for renovations or loans for students, qualify for tax exemptions, we suggest consulting with a tax expert.

Credit solutions made more efficient through SocietyOne

Getting cars on finance can be rewarding when done through credit providers that you can trust. SocietyOne has proven trustworthiness over the years through award-winning credit offerings, such as holiday loans and personal online loans. Our diverse services also now include earnings through credit, giving our clients the freedom to invest in loans.

SocietyOne offers secured and unsecured loans, with a loan floor of $5,000 for both types, payable within a minimum of two years. Three-year and five-year loan terms are available for both, with seven-year terms also available for secured loans. The maximum loanable amounts are $50,000 for unsecured loans and $70,000 for secured loans.

Taking advantage of credit gives many professionals and families the opportunity to improve their standards of comfort. Through conscientious lending, SocietyOne helps to achieve these standards.

Enjoy a smoother journey through life with a SocietyOne. Get your cars on finance with us today.