Car loan market 'looking tight'

Before riffling through brochures and picking out colour schemes for a dream motor, it may be worth giving a thought to how the vehicle will be paid for.

This is the claim of money expert Paul Clitheroe, who has pointed out that at the moment, the car loans market is looking “pretty tight”.

In an article for thedaily.com.au, the self-made millionaire and plain-speaking money expert noted that the industry has been left hobbled by the departure of two of Australia’s biggest car loan providers: GMAC and GE Finance.

However, he pointed out that there are still some competitive deals available with credit unions, banks and building societies.

“Lower <a href=”http://mozo.com.au/“>interest rates are the key reason for the credit unions’ strength in car loans. And even a small difference can add up to big savings,” he advised.

GMAC announced its departure from the car loans market, following the lead of its American division.

The group said it needed to adopt a “more conservative” approach to car loans in light of growing financial instability.