What aftermarket items can I finance?
Generally, manufacturer accessories included in the driveaway price are easily financed.
But did you know some aftermarket items can also be financed?
We know a new car, ute or van is not necessarily business ready when it rolls off the showroom floor.
After taking delivery, we see business owners spending hundreds or even thousands of their own cash on items such as:
- Branding signage;
- Paint protection film (PPF);
- Tool boxes;
- Tray covers; or
- Vehicle tracking hardware and software.
If these make commercial sense and you want to minimise your out of pocket expenses, then we have lenders that can add them to the loan which funds the purchase of the vehicle.
How much can I finance?
When financing a vehicle, one of the criteria is a satisfactory Loan to Value (LTV). LTV is the amount of the loan relative to the value of the vehicle. For the purposes of calculating LTV, aftermarket items add $0 value to the car but do add value to the loan amount (if you finance them). This means the better the price you get for the car, the more aftermarket items you can finance.
LTV limits vary between 110% to 140% depending on the age of the car and purchase type.
As a guide for a brand new vehicle from a dealer, it would be approximately 10% of the driveaway price excluding on road costs. Note the actual value of the vehicle is determined by an industry exclusive resource (which we have access to) called the Glasses guide.
Since the price of vehicles and choice of aftermarket items change constantly, we recommend checking your scenario with us before you commit to anything.
How does it work?
As vehicle finance is a single drawdown, the aftermarket item invoices are funded at settlement with the purchase of the new vehicle.
Given the suppliers are being paid in full upfront, a supplier you trust to do a good job is important.
From our personal network and experience in this field, we are happy to refer you to one should you not have your own.