For Consumers Driver Loans

The documents and information you may need with you are:

• Primary and secondary identification (one source of ID must be a driver’s licence)
• Proof of income: 2-3 recent payslips from your employer or PAYG statement if a business
• Proof of residence: 2 x recent rate or other notices with your current address shown
• Details of your living expenses and liabilities

Note that we may need additional information as part of the application process.

A balloon payment is a lump sum you agree to pay at the end of your car loan. It reduces your regular repayments, making them more affordable over the loan duration.

However, you’ll pay more interest overall. This is due to interest being accrued on the large balloon amount over the full loan duration, despite the non-balloon portion reducing with each repayment. On a loan without a balloon the full principal is repaid over the loan term, resulting in less interest payable overall.

If you plan to keep the car well beyond the loan term, a loan with a balloon payment costs more in the long run.

It might suit you if you want lower repayments or if you intend to change over your car at the end of the contract term. Just remember, you’ll need to pay or refinance the lump sum when the loan ends.

However, you’ll pay more interest overall. This is due to interest being accrued on the large balloon amount over the full loan duration, despite the non-balloon portion reducing with each repayment. On a loan without a balloon the full principal is repaid over the loan term, resulting in less interest payable overall.

If you plan to keep the car well beyond the loan term, a loan with a balloon payment costs more in the long run.

Here are some important things to consider:

• It’s easy to forget about the final payment, so make sure you plan for it. You’ll still owe a large amount at the end.
• You may need to sell or trade in your car. Many people use the value of the car to help pay back the balloon. If your car’s value is less than expected, you’ll need to cover the difference.
• Refinancing is not guaranteed. If your financial situation changes, or if interest rates go up, it might be harder or more expensive to refinance the balloon later.
• You’ll pay more interest overall. This is due to interest being accrued on the large balloon amount over the full loan duration, despite the non-balloon portion reducing with each repayment. On a loan without a balloon the full principal is repaid over the loan term, resulting in less interest payable overall.
• It may not suit long-term car keepers. If you plan to keep the car well beyond the loan term, a loan with a balloon payment costs more in the long run.

Yes, in many cases you can make extra repayments during the loan. This will help lower the final amount owing at the end of your term, but may result in the loan terminating early. Check your loan terms first to see if there are any early termination related costs.