Coronavirus and car buying: what to consider if you purchase a car now

By Ceyda Erem · · 2 min read
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Due to the COVID-19 outbreak many Aussies have had to say goodbye to public transport and instead look to purchasing second hand cars to get around.

"One of the serious implications for many people will be the impact on their ability to get around, as confidence in public transport diminishes due to strengthening of the Government’s social distancing measures and concerns about contagion," said Popcar director, Anthony Welsh. 

If it’s your first time purchasing a used car, it won’t be long until you realise there’s a lot more to do than just scrolling through car sales websites. 

You’ll also need to think about how you intend to pay for it during this challenging time. If you are in a financially stable position and your job is secure, a used car loan could be worth considering. 

Similar to a personal loan, a used car loan allows you to borrow money for the purpose of purchasing a second hand vehicle. 

In these financially tough times, it’s worth comparing used car loans based on their interest rates and fees. These features will impact your ability to pay off the loan faster and save a few bucks down the track. 

Another area you’ll need to look into is the history of the car, like whether the car has ever been stolen, repossessed or has money still owed on it. 

One way to do this is to consult the Personal Property Securities Register (PPSR), an online registry that allows Aussies to find information about second hand goods. Just keep in mind that you will need to pay a minor $2 fee to use the service. 

What if I can’t afford my current car loan repayments?

If you are in a situation where your income has been affected by COVID-19 and you can no longer afford to pay back your car loan, don’t panic, there are few things you can do. 

First and foremost, get in touch with your lender to inform them of your circumstances. From there, they’ll work with you to establish an appropriate outcome.

Some examples may include freezing your interest, deferring repayments or placing you onto a specialised payment plan to help you make your repayments. 

For instance, NAB is allowing customers to reduce minimum repayments on their personal loans for up to six months. 

If you’d like more information about what your bank is doing to help during the COVID-19 pandemic, have a read of our comprehensive COVID-19 banking relief packages guide. 

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Last updated 24 November 2024 Important disclosures and comparison rate warning*
  • Used Car Loan

    Fixed, Secured, No vehicle age limit, $5,000-$100,000

    Interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 18.99% p.a.
    7.19% p.a.to 21.78% p.a.based on $30,000
    over 5 years

    Get a competitive fixed interest rate on a secured used car loan of up to $100,000 depending on your credit score. No vehicle age limits. Easy online application. Fast pre-approval. Pre-approved funds held for up to 3 months. No monthly account keeping fees, no exit fees and no early repayment fees. Flexible weekly, fortnightly or monthly repayments on terms from 1 to 7 years.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

    Compare
    Go to site
    Details
  • Used Car Loan

    Interest rate
    comparison rate
    Monthly repayment
    8.49% p.a.to 16.99% p.a.
    9.21% p.a.to 17.77% p.a.based on $30,000
    over 5 years

    Competitive interest rates for vehicles up to 20 years at beginning of loan term. Maximum loan term of 7 years. No ongoing fees. Dealer/private sale acceptable.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 8.49% would cost $37,420.08 including fees.

    Compare
    Go to site
    Details
  • New Car Loan

    Fixed, Secured, $5,000-$100,000

    Interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 18.99% p.a.
    7.19% p.a.to 21.78% p.a.based on $30,000
    over 5 years

    Get a competitive fixed interest rate on a secured new car loan of up to $100,000 depending on your credit score. Easy online application. Fast pre-approval. Pre-approved funds held for up to 3 months. No monthly account keeping fees, no exit fees and no early repayment fees. Flexible weekly, fortnightly or monthly repayments on terms from 1 to 7 years.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

    Compare
    Go to site
    Details
  • Used Car - Unsecured Personal Loan

    Interest rate
    comparison rate
    Monthly repayment
    6.56% p.a.to 21.99% p.a.
    6.56% p.a.to 22.79% p.a.based on $30,000
    over 5 years

    Competitive fixed rates for borrowers on 1-7 year loans from $5,000 up to $50,000. $0 monthly fees and no early repayment fees to pay. Fast application process on the Revolut app. According to Revolut and subject to loan approval, you'll receive your money into your Revolut account straight away. Eligibility criteria applies.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.56% would cost $35,768.68 including fees.

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    Go to site
    Details
  • Any Age Car Loan

    Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    10.69% p.a.
    10.97% p.a.based on $30,000
    over 5 years

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 10.69% would cost $39,053.66 including fees.

    Compare
    Find out more
    Details

* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

^See information about the Mozo Experts Choice Personal Loan Awards

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