Guide to Stratton Car Loans

This is what Stratton Finance offers to customers. 

Stratton is an independent asset finance broker operating nationally across Australia.

Rather than lending its own money, it sources financing from a panel of 40+ accredited lenders. 

Essentially, Stratton sits between borrowers and lenders, helping the former find car loans (or other asset finance, e.g. caravan loan) that suit their circumstances. 

As a broker, Stratton’s proposition for customers isn’t a single product, but access to multiple loan options, guidance through assessment, and help in navigating rates, fees, and structures.

Or as Stratton puts it:

“Our brokers are dedicated to supporting and guiding you through every step of your car finance and buying journey, from enquiry to getting the keys in your hands.”

According to the company, it has helped 150,000+ customers secure more than $8 billion in finance, across cars, motorbikes, boats, and commercial vehicles. That’s since its inception in 1998.  

What car loans does Stratton offer

Because Stratton acts as a broker, it works with a range of lenders to give customers access to the following types of car financing:

Secured car loans

Stratton facilitates access to car loans for the purchase of new or used cars as well as refinancing options. With secured car loans, the lender uses an asset (in most cases, the car you’re financing) as collateral against the loan. Because of this back-up, secured car loans tend to come with lower interest rates than those without security as lenders consider them less risky.

Unsecured car loans 

Speaking of no security, some car loans may be used to finance a vehicle without putting up the car as collateral. Unsecured car loans are generally the same thing as unsecured personal loans. Since it’s riskier to the lender, interest rates on unsecured car loans are typically higher than secured loans. However, you may have more options and greater flexibility when it comes to the vehicle (e.g., older car) you can finance. 

See also: Secured vs unsecured car loans

Finance lease or car lease

A finance lease is an option if you’re purchasing a car to be used for business purposes more than 50% of the time. Under this arrangement, a vehicle is bought by a finance company then leases it out to a renter over a lease period. The renter pays a fixed monthly lease rental and then pays the residual value at the end of the lease if they want to take ownership of the vehicle. 

See also: Operating leases explained

Novated lease

A novated lease is a salary packaging agreement that allows you, the employee, to buy a vehicle paid for by your employer to the financier out of your pre-tax income. This type of arrangement can reduce your taxable income and even allow you to bundle running costs like fuel, maintenance, and insurance.

See also: Novated leases explained

Commercial chattel mortgage

A commercial chattel mortgage is a type of secured loan used by businesses to purchase an asset (e.g., a car or equipment) for business use, which also acts as a security for the loan. This means the lender can repossess the asset if you default. Unlike a lease, this allows you to have complete ownership of the asset.  

See also: What is a chattel mortgage?

Other loans offered by Stratton

Stratton Finance also offers brokered loans for the refinance or purchase of new or used: 

• Motorbikes (motorbike finance)
• Boats, jet skis, personal watercraft (boat finance)
• Caravans, motorhomes, camper trailers (caravan finance)

Stratton car loan features

Because Stratton acts as a broker, exact features can vary depending on which lender is selected. 

Typical features of car loans in Australia, include:

• Fixed or variable interest rates
• Loan amounts from $10,000 up to $250k-$350k
• Weekly, fortnightly, or monthly repayments
• Optional additional repayments
• Ability to add a residual or balloon payment

Note that these features vary depending on the lender. 

What Stratton offers to car loan customers are: 

• Wide lender panel – Borrowers have access to a panel of 40+ lenders
• Experienced broker guidance – Stratton has over 25 years of experience in vehicle finance
• Convenience and flexibility – Borrowers can navigate their application process and get a quote online
• Ongoing support – Stratton offers customer support throughout the loan term

Stratton car loan fees

Fees also vary depending on the chosen lender. 

Interested customers can get a quote from Stratton, done online in minutes, which will include all fees.  

Stratton car loan interest rates

Because Stratton is a broker, interest rates vary depending on the lender, borrower profile, and loan type.

As a general guide: 

• Interest rates can start from around 5.6%-6% p.a. for highly creditworthy borrowers.
• Higher-risk borrowers may see rates up to ~18% p.a.
• Always check the comparison rate to get a better idea of the real cost of the loan when fees are included.

How to apply for a car loan with Stratton

Applying for a car loan with Stratton is a broker-led process, which means you, the borrower, are matched with a suitable finance option from a panel of lenders rather than a single in-house product. 

The whole application journey is simplified into three steps: 

1. Compare lenders

Compare your options among Stratton’s panel of 40+ lenders. You can do it online or with one of Stratton’s brokers. According to the company, the broker you will be working with will be with you throughout the whole process, “no handing you off or passing you over to another team”. 

2. Complete an application and explore your options

This is the part where the broker gets to know you and your situation. You will complete an application with the following information:

• Personal details
• Employment history
• Income and expenses
• Vehicle details 

This will be reviewed during the preliminary assessment. 

The broker will then provide you with quotes from lenders that suit your budget and requirements, explain the product options, and the next steps. 

Once you’ve made a choice and are ready to proceed, your Stratton broker will send your application to your preferred lender. 

Approvals typically take anywhere within 24 to 48 hours. 

3. Buy the vehicle while your broker takes care of the rest

Once approved, you can now shop for a vehicle while your Stratton broker carries out lender pre-settlement checks. Broker assistance during this step can include 

• Assisting you with finding the car, boat, or caravan you want to purchase
• Checking private sale requirements, if applicable
• Obtaining the dealer invoice

Your broker will then generate the loan contract and walk you through the terms and conditions. 

1. Quick tip: Take the time to read and review everything before you sign. 

Finally, your Stratton broker coordinates settlement with the lender and, once settled, you’ll be able to pick up your new vehicle or the funds you need. 

Post-application support

Stratton says customers who secured a car finance through them are provided ongoing support throughout the life of their loans. 

Who can apply for a car loan with Stratton

To apply for a Stratton car loan, you must:

• Be over the age of 18
• Be an Australian citizen or permanent resident
• Have good credit history over the last five years
• Have not declared bankruptcy in the past seven years

Check your credit score using Savings.com.au’s Credit Score Calculator

Why is a Stratton car loan worth considering?

Getting a car loan can be an overwhelming process. From comparing your options from dozens of lenders (many of which will even have multiple products to choose from) to the application, pre-settlement and settlement, the whole journey of getting the car of your dreams may feel more taxing than exciting. 

With over 25 years of experience and stellar reviews and multiple industry accolades to back their claims up, Stratton Finance is widely regarded as a top-tier option for Australians seeking guided car finance. Its wide lender panel can also mean you have more choices. 

If you’re a car loan borrower who wants experienced broker assistance, prioritising convenience and access to a wide range of options, Stratton can be worth considering.