Personal finance: your questions answered

A personal car loan is consumer credit regulated by the National Consumer Credit Protection Act. That brings responsible lending obligations on the lender and the broker, a requirement to quote a comparison rate, and access to consumer dispute resolution. Business vehicle finance for a genuine business purpose generally sits outside that regime and is assessed on the business rather than household budget. The security over the vehicle can look similar; the disclosure, protections and tax treatment do not.

Under the NCCP Act, we must make reasonable enquiries into your requirements and objectives and your financial situation, take reasonable steps to verify what you tell us, and assess whether the credit is not unsuitable for you. In practice that means questions about income, expenses, dependants and existing debts, and asking for payslips or bank statements to verify them. It is not paperwork for its own sake — it exists so you are not put into a loan you cannot afford.

Because a comparison rate folds most standard fees and charges into the interest rate to give a single figure for comparison. A loan with a low headline rate and a large establishment fee will show a noticeably higher comparison rate. The rate is calculated on a standard example amount and term set by regulation, so it will not match your loan exactly, but it is the fairest quick comparison between two consumer loans. Always look at both figures plus the total repayable.

Yes. Leisure asset lending is available for caravans, camper trailers, boats, jet skis, motorbikes and horse floats, secured against the asset itself. Because these are bought for private use, the loan is regulated consumer credit with responsible lending obligations and a comparison rate. Terms are commonly up to seven years, sometimes longer for larger caravans and boats. Lenders consider the asset's age and type as well as your income and existing commitments.