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

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

Compare car loans - last updated 6 August 2022

Search promoted car loans below or do a full Mozo database search . Advertiser disclosure
  • New Car Loan - Special

    Home Owner Discount, Including Demo, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    5.69% p.a.
    6.24% p.a.based on $30,000
    over 5 years

    Eligible for homeowners only. Low fixed car loan rate for purchasing new and demo vehicles from dealers. There is no monthly or ongoing fees and early payout options available. Winner of Mozo's Experts Choice Car Loan 2021 award^.

    Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 5.69% would cost $34,940.17 including fees.

    Details
  • Car Loan

    Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.25% p.a.
    6.87% p.a.based on $30,000
    over 5 years

    Available for all New and Used cars up to 7 years. A quick and easy, 100% online application with loans up to $75,000. No printing. No paper. No fuss. No monthly account keeping fees, no exit fees and no early repayment fees.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.25% would cost $35,258.67 including fees.

    Details
  • Clean Green Car Loan

    Home Owner Discount, New or Used, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    4.99% p.a.
    5.54% p.a.based on $30,000
    over 5 years

    No monthly or ongoing fees. Get a 0.70% discount on your car loan interest rate if you buy a qualifying green car. Winner of Mozo's Experts Choice Green Car Loan 2021 award^.

    Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 4.99% would cost $34,359.97 including fees.

    Details
  • Secured Car Loan

    Fixed

    Interest rate
    comparison rate
    Monthly repayment
    6.34% p.a.to 13.99% p.a.
    7.18% p.a.to 12.87% p.a.based on $30,000
    over 5 years

    Low personalised rates, ideal for borrowers with excellent credit. No monthly account fees, no early payout fees, so you can pay off your loan sooner. Borrow between $5,000 and $79,000. Easy online application, receive a response in minutes and approved funds within 24-48 hours!

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 6.34% would cost $35,689.33 including fees.

    Details
  • Used Car Loan

    Home Owner Discount, Dealer Only, Up to 5 years old, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.49% p.a.
    7.04% p.a.based on $30,000
    over 5 years

    Eligible for homeowners only. Low fixed car loan rate for purchasing new and demo vehicles from dealers. There is no monthly or ongoing fees and early payout options available. Winner of Mozo's Experts Choice Car Loan 2021 award^.

    Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 6.49% would cost $35,610.64 including fees.

    Details

^See information about the Mozo Experts Choice Personal Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.