Target Market Determination

1. About this document

This target market determination (TMD) seeks to offer consumers, distributors and staff with an understanding of the class of consumers for which this product has been designed, having regard to the objectives, financial situation and needs of the target market.   This document is not to be treated as a full summary of the product’s terms and conditions and is not intended to provide financial advice. Consumers must refer to the Consumer Loan Contract Terms and Conditions and any supplementary documents which outline the relevant terms and conditions under the product when making a decision about this product.

Consumer Loan Contract to which this target market determination applies

This TMD applies to the Consumer Loan Contract particulars of which are referred to in the Consumer Loan Contract Terms and Conditions.

Date from which this target market determination is effective

5 October 2021

2. Class of consumers that fall within this target market

The information below summarises the overall class of consumers that fall within the target market for the Consumer Loan Contract, based on the product’s key attributes and the objectives, financial situation and needs that it has been designed to meet.

This Consumer Loan Contract has been designed for consumers whose likely objectives, financial situation and needs (as listed below) are aligned with the product (including the key attributes). The Consumer Loan Contract is for those who:

• Wish to obtain a consumer loan for the purposes of purchasing a motor vehicle predominantly for personal use;
• Are prepared to offer the motor vehicle as security for the consumer loan in the event that the consumer is not able to meet the terms and conditions of the consumer loan

Product description and key attributes 

The key product attributes are specified in the schedule to Consumer Loan Contract and are summarised below:

• The amount borrowed;
• The term of the loan;
• The amount and frequency of the regular repayments required to be made;
• The Interest charged;
• The fees and charges payable;
• The security provided for the consumer loan;

The key eligibility requirements for the Consumer Loan Contract are summarised below:

• Must be a minimum of 18 years of age;
• Must be an Australian resident or hold a suitable visa;
• Must be employed for certain period depending on your tier;
• Must have income exceeding liabilities and living expenses.

Objectives, financial situation, and needs 

This product has been designed for individuals who:

• Wish to own a motor vehicle predominantly for personal use;
• Wish to make affordable repayments for the term of the loan;
• Wish to provide the motor vehicle as security for the loan.

Excluded class of consumers

This product has not been designed for individuals who:

• Want a commercial vehicle predominantly for business use.

Consistency between target market and the product  

The Consumer Credit Contract is likely to be consistent with the likely objectives, financial situation and needs of the class of consumers in the target market because it provides the target market with the following:

• Ownership of a motor vehicle predominantly for personal use;
• Affordable repayments for the term of the loan;
• The motor vehicle as security for the loan.

3. How this product is to be distributed

Distribution channels

This product is designed to be distributed through the following means:

• Finance broker network;
• Online applications via the Affordable Car Loans website .

Distribution conditions

This product should only be distributed to consumers who:

• Wish to own a motor vehicle predominantly for personal use;
• Wish to make affordable repayments for the term of the loan;
• Wish to provide the motor vehicle as security for the loan;
• Have the appropriate borrowing capacity in accordance with lending guidelines.

Adequacy of distribution conditions and restrictions 

The adequacy of distribution conditions and restrictions is based on the risk assessment of data for the class of persons fitting within the Target Market for whom the product has been designed.

4. Reviewing this target market determination

We will review this target market determination in accordance with the below:

Initial review	Within 12 months of the effective date.
Periodic reviews	At least annually from the initial review.
Review triggers or events	Any event or circumstances that would suggest the TMD is no longer appropriate. This may include (but not limited): a material change to the design or distribution of the product, including related documentation; occurrence of a significant dealing; distribution conditions found to be inadequate; external events such as adverse media coverage or regulatory attention; and significant changes in metrics, including, but not limited to, complaints, default rates, volume of loan contracts

Where a review trigger has occurred, this target market determination will be reviewed within 10 business days.

5. Reporting and monitoring this target market determination

We may collect the following information from our distributors in relation to this TMD.

Complaints	Distributors will report all complaints in relation to the product(s) covered by this TMD on a quarterly basis. This will include written details of the complaints.
Significant dealings	Distributors will report if they become aware of a significant dealing in relation to this TMD within 10 business days.

Reviewed on 12 April 2024