$30,000 car loan comparisons made easy
Whether it’s a new family car or your dream set of wheels, securing a $30,000 car loan could go a long way towards helping you get behind the wheel faster. But with so many different car loan offers around, how can you work out which loan will be the best fit for your own situation?
Mozo’s handy car loan comparison table above provides an easy way to compare a bunch of offers in the one place, but if you’re after some more information to get to grips with all the ins and outs of a car loan, check out our car loan price guide or keep reading below.
Car loan interest rates explained
The interest rate you get on your car loan will determine how much interest you end up paying over the life of the loan. So if you’re shopping around for a $30,000 car loan, not only does it make sense to compare a range of offers to ensure you’re getting a great rate to save you money, it also makes sense to weigh up the kind of car loan rate you want to pay.
There are two types of car loans - those with fixed rates and those with variable rates, so here’s what you’ll want to know about the two.
Fixed rate car loans
Like home loans and personal loans, you’ll be able to choose a car loan with a fixed rate. That means that your rate will be ‘fixed’ for the life of the loan, meaning you’ll make the same repayments each month or fortnight.
This obviously gives borrowers the advantage of knowing exactly how much they’ll need to budget for over the loan period, plus it means you’ll safe from any rate fluctuations over that period.
On the down side, some lenders charge extra fees for borrowers wanting to pay off their fixed rate loan early.
Variable rate car loans
On the other hand, variable rate car loans can change over time at the whim of the lender. Generally these changes take place in line with movements in the official interest rate, but that’s not always the case. Of course, there’s also the possibility that a variable rate may not actually move at all over the course of the loan.
The major benefit of a variable rate car loan is that your rate, and thus the interest you’re required to pay, could drop over time if your lender decides to reduce their rates. Unfortunately the opposite can happen too, meaning your rate (and your repayments) go up.
The other benefit is that you generally won’t be charged a fee for paying off a variable rate car loan early, which may be a feature worth considering.
The essential car loan fees and features
Aside from the interest rate, there are a number of other important car loan fees and features you’ll want to consider before locking in a deal.
Car loan fees are the other potential cost, other than interest, that you’ll need to compare when choosing a car loan. These will vary in size and type by lender, but some of the more common fees you might need to shell out for include:
- Application Fee: Also known as a Set Up fee, the application fee is a one-off cost you pay at the start of the loan. Some lenders don’t charge a fee at all, but you could typically expect an application fee to range anywhere from $100 to $500.
- Ongoing Fee: Also known as a Service or Monthly Fee, some lenders charge ongoing fees to manage your car loan account. These are generally charged on a monthly basis and tend to range from $5 to $10.
- Break Cost Fee: Generally applied to fixed rate car loans, the break cost fee is a penalty some lenders charge if you pay off your loan early.
- Discharge Fee: Discharge fees are charged by some lenders at the end of the loan period in order to cover the costs of closing your loan account.
- Late Payment Fee: Miss a repayment? Many lenders will charge you a late payment fee if you fail to get it in on time.
Rates and fees - they’re the two most important elements to consider when taking out a car loan right? Hold on a minute, because you’ll also want to weigh up any features as well. Some common car loan features include:
- Extra Repayments: Like the idea of being able to pay off your car loan ahead of schedule? Find a loan that offers free extra repayments.
- Redraw Facility: Made extra repayments but suddenly find that they could be better used paying for a medical bill or paying off debt with a higher interest rate? A car loan that features a redraw facility (especially a free one) could be the answer.
- Loan Term: This is the amount of years you elect to pay your car loan off over. Generally the minimum term is one year but the maximum could range anywhere between five and ten years.
- Repayment Frequency: Depending on your lender you may be offered the flexibility of making repayments on a weekly, fortnightly or monthly basis.
The difference between secured and unsecured car loans
If you’ve been checking out some of the $30,000 car loan offers in the table above you might be wondering whether a secured or unsecured car loan is the better option for your situation. Ultimately there’s no ‘better option’ though, as that will depend on what you’re looking for in a loan.
As the name suggests, borrowers taking out a secured car loan will be required to provide an asset to be ‘secured’ against the loan - generally the car itself. This means that the lender will be able to repossess the car, or the asset you’ve put up, if you fail to make your repayments. The benefit of taking out a secured car loan is that you’ll generally receive a lower interest rate and fees.
Your other option is to take out an unsecured car loan. In this case you won’t be required to provide an asset to secure it, but you’ll generally be charged a higher interest rate and higher fees for the privilege of getting an unsecured loan.
Different car loan lenders
You’ll be able to compare $30,000 car loans from a heap of different lenders including banks big and small, credit unions, online lenders and peer to peer lenders. In fact, Mozo compares 180 car loans from more than 70 providers.
Which car loan provider is going to be the right option for you though? That’s a decision you’ll have to make yourself because people choose different lenders for a number of reasons including:
- Cost: For many Australians, the cost of their car loan will be the ultimate deciding factor. And while rates and fees vary between different lenders, online lenders and smaller banks and credit unions often offer more competitive rates.
- Familiarity: For many Australians, taking out a car loan with a familiar name, a lender they trust or with their existing bank is the main consideration they take into account.
- Convenience: Like the idea of the entire car loan process being online? An online or peer-to-peer lender could provide a simple online application and approval process.
$30,000 car loan FAQ’s
Still got some burning car loans questions that you need answered? Keep reading below as we answer some of the most frequently asked questions about car loans.
Can I afford a $30,000 car loan?
Before you take the plunge, you’ll certainly want to be certain that you’re comfortable paying off a $30,000 car loan - after all, it’s a lot of money.
So, just how much will you need to pay to finance a $30,000 car loan? That depends on a number of factors including the rate you’re able to secure on the loan, as well as any fees you’re charged and whether or not you’re on a variable or fixed rate loan because, as we said previously, your variable rate could change over time.
Here’s an example featuring prospective car buyers Emma and Lewis. The couple have decided on a $30,000 secured car loan with a fixed interest rate of 6.25% and they’ll be paying it off over a five year term. According to the Mozo Car Loan Repayments Calculator, Emma and Lewis will need to make regular repayments of $269 per fortnight or $583 each month over those five years to pay off the loan.
Can I get a car loan if I have bad credit?
Determined to find a $30,000 car loan but worried that your bad credit might hamper your chances? While there’s no guarantee that a lender will approve your application if you have bad credit history, there are certainly some steps you can take to improve your credit score and chances in the future including paying off your existing debt, making repayments on time providing proof of stable employment.
Can I get a car loan for a used car?
Yes! Car loans aren’t only for purchasing new cars, they can also be used to pay for used cars. In fact, you’ll be able to compare variable and fixed rate used car loans from a range of different lenders including banks, credit unions and online lenders using Mozo’s Used Car Loans Comparison Table.
How do I apply for a car loan online?
Looked at the offers in our handy car loan comparison table above and found a $30,000 car loan you like the look of? Once you’ve hit the ‘Go to site button’ you’ll need to answer a few questions and provide some documents as part of the car loan application process.
Some of the common information and questions lenders will ask include:
- The email, name and date of birth of any applicants
- The amount you want to borrow, the period of time you want to borrow it over and your desired repayment frequency (weekly, fortnightly, monthly).
- Whether it’s a new or used car
- Whether the car will be used for personal or business purposes
It’s also a good idea to get your documents ready before you start an application, including identification (such as a passport or medicare card), your driver's licence and proof of your employment and income.