Aussies drive record growth for car sales - time to find yourself a car loan?

Kelly Emmerton   |   31 Jan 2018

redactor/hero-images/259/car-sales-car-loans_content.jpg

If you thought about treating yourself to a set of new wheels in 2017, you're not alone - so did a record number of Aussies, according to ABS data.

Our love affair with our cars isn’t showing signs of slowing down any time soon, with total sales of new vehicles rising by 6.7% over the year to December 2017, well above the previous year’s 2.1% growth.

And despite red hot property markets in Sydney and Melbourne, car sales also outstripped home loans last year, with only 86,250 home loans agreed each month, compared with around 100,476 new cars sold, according to MPA.

But Mozo Director, Kirsty Lamont cautioned anyone hitting the car yards to make sure they have their finances sorted out before falling in love with their next ride.

“A competitive car loan can come with an interest rate as low as 5.14% attached, so shopping around for the best deal on loan before you shop around for a car can really pay off,” she said.

“Plus, you’ll then be able to factor the interest payments into your budget, to work out how much you can spend on your new wheels.”

So if you’re on your way to pick up a brand new car this month, check out some competitive car loans below.

Car loans to get you on the road! - rates updated daily

  • Promoted

    Australian Military Bank

    Australian Military Bank

    Car Loan - Excellent Credit (Up to 5 years old, Variable, Secured)

    5.71% p.a.to 8.66% p.a.

    6.57% p.a.to 10.07% p.a.based on $30,000
    over 5 years

    $100.00upfront and $10.00/month

  • Promoted

    MyState Bank

    MyState Bank

    Secured Personal Loan (vehicles up to 2 years old, Variable)

    7.99% p.a.

    8.96% p.a.based on $30,000
    over 5 years

    $200.00upfront and $10.00/month

  • Promoted

    Bank First

    Bank First

    Discounted Green Car Loan (Variable, Full Salary Credit, Secured)

    5.29% p.a.

    5.50% p.a.based on $30,000
    over 5 years

    $150.00upfront and $0.00/month

  • Promoted

    loans.com.au

    loans.com.au

    New Car Loan (Up to 2 years old, Fixed, Secured)

    5.44% p.a.to 5.94% p.a.

    5.99% p.a.to 6.5% p.a.based on $30,000
    over 5 years

    $400.00upfront and $0.00/month

  • Promoted

    Heritage Bank

    Heritage Bank

    Car Loan (Up to 7 years old, Fixed, Secured)

    6.99% p.a.

    7.62% p.a.based on $30,000
    over 5 years

    $200.00upfront and $5.00/month

What to look for in a car loan

Not sure where to start in your car loan search? Here are some of the key features to look at when choosing the right fit for your wallet.

  • Interest rate. The interest rate is probably the first thing you think of when it comes to how much a car loan might cost you - and the difference it can make can be huge! It’s worth shopping around for the lowest rate you can find, and remember that some car loan lenders determine the rate you get depending on your credit score, which means the better your score, the less interest you pay.

  • Fees. Another thing that can add to the price tag of your new vehicle are fees. This might include application fees, ongoing service fees or even fees for paying your loan off early. It’s worth looking around to see if you can find a fee-free option that suits you.

  • Secured or unsecured? Generally speaking, secured car loans come with lower interest rates attached, since having an asset up as security lowers some of the risk for the lender. And the good news is, you can often use the new car you’re buying as security! If you’re looking for more flexibility or can’t use your car or another asset as collateral, then an unsecured loan may be a better option.

  • Handy features. There are a few features that might come included with your car loan and could stand to save you money if you play your cards right. For example, by making fee-free extra repayments on your loan, you can pay off your principal quicker and save on interest.

Haven’t found what you’re looking for yet? Why not head over and take a look at our car loan comparison table for more options.

Mozo may receive advertising fees from the financial institutions, issuers of financial or credit products and third party advice providers that are shown on this page. These fees are based on a cost per click, cost per acquisition, or a fixed fee.