Car loan providers slash rates in time for dealership sales
Article by Roisin Kelly-Goldsmith
Now more than ever is the perfect time to purchase some new wheels, with car dealerships across the country slashing price tags on stock they are trying to clear before 2016 winds up.
To top things off, providers have been busy cutting interest rates on car loans in December, making it even more appealing for Aussies to nab a new ride.
According to Mozo’s database, Gateway Credit Union made the biggest car loan rate reduction this month of 1.35%, bringing its rate down to 5.69%.
Our comparison calculator shows, a borrower looking to buy a $30k set of wheels, who went for this new low rate over the average in our database, would save $3,607 in interest over a five year period.
Another lender who cut car loan rates this month was big four player ANZ, slashing its Online Secured Car Loan by 65 basis points to 6.15%.
However, Mozo Director Kirsty Lamont warned car lovers not to get too excited by major lenders reducing car loan rates, as often it’s the smaller providers offering the best deals.
“While it’s great we’ve seen a range of providers reduce rates on car loans this month, it doesn’t necessarily mean that what they have to offer is a bargain. In fact, with a little car loan comparing, Aussies can access rates below the 5% mark,” she said.
Top car loans right now:
Best of the big four:
- ANZ’s Online Secured Car Loan at 6.15%
- Westpac’s unsecured Personal Loan at 12.99%
Best secured car loan
- Loans.com.au: New Car Loan at 4.94%
Best unsecured car loan
- G&C Mutual Bank: Fair Rate Personal Loan at 5.99%
Lamont added that there’s no guaranteeing these low rates will last, so car buyers in the market should act soon before it’s too late.