In this current low-rate environment, refinancing has become common practice for many home loan holders to shave thousands off their mortgage. But is refinancing your car loan a good idea? Let’s take a look at the numbers: Since 2016, there have been eight cuts made to the Reserve Bank of Australia’s (RBA) official cash rate. It now sits at an historic low of 0.10% from 2.00%. The current average variable car loan rate for new and used vehicles sits at 6.68%. When you compare that to the average rate at the same time five years ago, 7.82% - that’s a 1.14% difference. In the case of home loan interest rates, the current average variable rate is 3.30% from 4.72% five years ago. While that is a 1.42% difference, the small margin can make a significant difference because home loans are generally around 25 to 30 years. So the question is, should you refinance your current car loan? We’ve weighed it up.
There are a bunch of new car models set to hit Aussie shores this year. Whether you’re after an eco-friendly Volvo XC40, a fresh BMW iX, a new model VW Golf, Subaru Outback or are even considering the latest Tesla Model Y - there’s plenty to get excited about. So, if a fresh set of wheels is on your 2021 to-dos, and you’re needing a car loan to get there, it’s important you find the right loan to suit you and your price range. While something like the new model Skoda Octavia might set you back around $30,000, cars like Audi E-Tron GT could cost around $180,000 - not to mention the price tag a new-model luxury vehicle might come with. Ultimately, it’s important to give yourself the wiggle room to borrow what you need to cover the cost of your new car. Also keep in mind, that when borrowing for a car only borrow within your means. While a fancy whip might seem fun at the time if you are unable to pay down your loan over time you’ll risk spiralling into more debt and facing hefty late payment fees and interest repayments. With that in mind, here’s a rundown of where you might find a loan to match the car you have your eye on in 2021 …
For a lot of us, purchasing a used car is the simple way to avoid forking out a fortune for a new set of wheels. But according to new figures from data aggregation firm Datium Insights, Aussie drivers are now paying more than 40% more for second hand cars compared to pre-Covid in 2019.Two common reasons car sales have surged over the last few months is due to the fear of public transport as well as a desire to explore the country on road trips.
As we settle into the second year of the global pandemic, it's obvious some Aussies are changing their tune when it comes to getting around. Take New South Wales, for example. According to Opal data from Transport for NSW, public transport usage was down 44% from 2019 to 2020. Only 32.5 million people jumped on the bus, train, ferry or light rail in December last year, compared to 58.5 million the same time the year before. With many people working from home and some even moving out of the Greater Sydney area, it's no surprise that the number of public transport passengers is down. Plus, when compared to the traffic stats over a similar period, it shows that many Aussies feel more comfortable jumping in their car instead. In fact, a spokesperson for Transport NSW recently told the Sydney Morning Herald that the number of vehicles on the road in NSW is only down 4%, with an average of 107 million per day compared to 112 million a year ago. Mozo Director, Kirsty Lamont said she’s not surprised with this statistic. “It makes sense that many people in New South Wales, and in other states, are opting to get behind the wheel of their own car to avoid the risk of potential exposure to Covid 19 on public transport,” she said.“But while ex-public transport commuters might be saving on their daily bus, train or ferry fair, there are other costs associated with taking a car instead, like petrol, tolls and parking. So, it’s all about being savvy when it comes to day to day driving expenses so you aren’t forking out too much.”
From Mazdas to Corollas to BMWs, Aussies are spoilt for choice when it comes to finding their dream car. But for many drivers, picking up the right set of wheels is only half of the job, the next step is finding the right car loan. The good news is Mozo has just unveiled its best car loans for this year in its 2021 Mozo Experts Choice Car Loan Awards!Our judges sifted through 89 personal loan products from 88 financial institutions and performed a series of calculations to find the car loans that were not only top value, but budget-friendly.“Purchasing a car is often recognised as a financial milestone for many people, so having the right car loan under your belt is essential,” said Mozo Experts Choice Judge, Peter Marshall. “With the range of options available, finding the right product can be difficult. Our awards aim to help Australians with their search by highlighting the products we believe are worth shortlisting.”So without further delay, introducing the winners for the 2021 Mozo Experts Choice Car Loan Awards.