Northstar Financial

Scheduled fortnightly or monthly payments can be made by direct debit, cheque, BPAY, internet banking, direct payroll and cash where applicable.

Insurance, loan protection and gap cover can be added to the loan.

A deposit is not required in most cases, but that will assist in your approval chances should you have a borderline application.

Most car loans are daily reductible, ie the interest is calculated on the unpaid balance daily, just like a home loan. Extra or additional payments will shorten the term and reduce interest charges (fees and charges may apply). Most secured loans are fixed for the term of your loan, so your payments won't go up in a rising market.

A variation known as a balloon payment or residual option is also growing in popularity. By setting a larger balloon payment for the end of the term, which can vary according to circumstances, you can reduce your fortnightly (or monthly) payment to better balance your budget. At the end of the term, you can either pay out the full amount in one hit or re-finance the balloon amount and continue paying off the car over a new loan period.

Secured loans generally have a lower interest rate that unsecured loans.