We recently financed a 2008 Nissan GTR for just over $100,000 for a client of ours. Yes it was their dream car.
JDM’s and their American counterparts are becoming more and more popular as they can be cleaner, cheaper & have lower km’s compared to what can be found on the Australian market. But the issue most people face is financing them. This is because they are typically too old for lenders or lenders won’t finance these cars often referred to as ‘grey imports’.
These are a few way that any import car can be financed.
Secured Bank Loan
If a car meets a lenders specifications it can be financed through a secure bank loan. This is a loan where the bank takes the vehicle as security. AFS & Westpac are 2 lenders who have an appetite for this type of lending. However, the car needs to be a newer model car and if we are honest, the best JDM’s are from the late 90’s and early 00’s. This means even though this is the cheapest option, it is often not an option that would work.
Personal Bank Loan
A personal loan is where the bank gives you money without any security. This works similar to any bank loan. However, there are drawbacks with this type of lenders.
- Rates are often higher with no security taken
- Banks typically will lend up to $60,000. So if you are needing more than $60,000 then you would need to go to 2 lenders OR come up with the difference in cash
Personal bank loans are a great option for imports that are valued under $50,000 who come from the older era of cars.
Equity Against A Residential Property
If you are fortunate enough to own a home with equity, you can take your funds against your home loan. This would provide the lowest rates on the market – being mortgage rates – and would have no cap against your lending given you have enough equity. Because the car itself isn’t taken as security, the age of the car won’t be an issue. However it is important to understand that the liability and therefore risk against you home would increase as there is more debt tied against it.
Business Loans
If you have a business and are purchasing a vehicle under the business name, or even if you are not, you could get yourself a business loan. This can be either secured or unsecured. The benefits of this is being able to claim your interest against the business as the car is being used for business purposes.
Conclusion
There are a number of ways to finance an imported vehicle. It all comes down to the vehicles & your situation. If you’ve been told no reach out because there is always a solution
