“Super quick, I got lots of offers. All I had to do was choose which one! I went with Wisr because they were the cheapest. Thanks” - Angela
With a car loan, the loan is secured against the value of the car that is being financed, which means;
Car loans are best for people who simply want to buy a car, as car loans generally offer much lower interest rates than personal loans.
Did you know? 90% of all car sales are financed in Australia. That’s almost $3 billion dollars a month in car financing!
Just like you shop around for your perfect ride, do the same with car loans, you’ll have a better chance of negotiating if you know:
Finance at a car dealership might seem quick and easy but be aware of unnecessary extras that may increase the total loan amount and your repayments.
Lenders love boring, or should we say, consistency!
They love it if you've had the same job forever and have been at the same house since you first left home.
Here's an example of how your employment history can influence your approval.
A stronger credit history over a longer period of time is favoured.
The lender would prefer to finance new cars over older cars for a couple of reasons, but ultimately are often backed by warranties in case of any mechanical issues. The older the car being financed, the more issues it may have.
Usually car loans offered are between two to seven years. The most common is five years. And... most people pay out their loan early so be sure to get a car loan with no fees for early repayment.
How much you can borrow depends on you and the value of the car, but you could borrow up to $100,000, the average being $30,000.
Everyone wants to get the best car loan rates, here is what that will depend on:
Generally the newer the car, the cheaper it will be. See more about what lenders are looking for below.
Most car loan lenders can approve your car loan on the same day you apply. You'll need to be able to supply your ID and proof of your income, eg payslips.
You could expect to be driving your car in 2-3 business days.
The short answer is no. In most cases as long as you can afford to meet the repayments, you can borrow 100% of the cost of the vehicle.
You can finance most cars with a secured car loan. They will generally need to be less than 12 years old at the end of the loan term to qualify.
Buying older cars is still possible with a personal loan.
You can apply for a car loan with banks, car dealerships, car finance brokers or online lenders.
They all have different products and rates so it can be hard to find the right one for you.
We recommend using our Money Matchmaker™ to do the leg work for you. It's like applying direct with 10 lenders all at once.
A good thing to do, is to write each car loan offer down to do a side-by-side comparison. Always start by asking each lender who has quoted you for the total amount to repay.
This is a really quick way to see what car loan is the lowest cost overall.
Here are 5 things you need to compare when assessing which car loan option is best for you.
Interest is charged by your lender for borrowing the money. It’s essentially how much extra you’ll need to pay back on top of the amount you borrow.
It’s very standard that your repayments will have a fixed interest rate. Variable rates don’t really exist anymore.
This is also called the ‘term’ of your loan. Car loans are usually between two and seven years but most commonly 5 years.
The shorter the term, the less overall interest you will pay.
This is a one-time fee you’ll pay when applying. You may be able to negotiate this or simply choose a lender who doesn't have one!
Try and avoid these where you can - they only add to the amount you have to repay. They’ll be disguised as monthly account keeping fees.
Some secured car loans won’t allow for early repayments. If you plan to repay your loan in full before the end of your term, check to see how much (if anything) you’ll be charged.
Lenders will use these fees to make up for the interest charges they’ll miss out if you repay early.
Money Matchmaker™ can find you the best car loan options from 10 lenders for you to compare online. It's obligation free too.
To qualify for a car loan, you're going to need to have;
You really need to do your research to find the best car loan.
Here is a quick check list?
It’s super important to read these so you understand any fees or penalties for your loan.
Look for fees payable at the start and during your loan term, this affects the total amount you pay.
Get matched with real loan offers from up to 11 lenders, all at once.
We show you the best interest rates and repayments from each lender you match with
The rates are based on who you are and where you are at in life
No obligations, just the facts, make an informed choice
There are no middlemen, marked up pricing or broker fees. (We get paid by the lender)
Just like when you use a dating app or go to a broker, we use your answers to show you real lenders, real rates and actual repayments across all our lenders that you’re eligible for; without any broker fees or marked up interest rates.
Money Matchmaker™ has helped people throughout the country including; Adelaide, Newcastle, Sydney, Canberra, Brisbane, Melbourne, Hobart and Perth.