How to be car loan ready for end of year car sales
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Whether you’ve got your eye on a new electric car model, a family sedan or your dream sports car, the end of year and Boxing Day sales are the perfect time to drive off with a new car at a bargain price as dealers are keen to clear stock before the New Year. But before you head to the showroom, it’s smart to ensure your finances are in order.
Start by crunching the numbers to calculate car loan repayments and include on-road costs like stamp duty and car insurance. Comparing car loan options in advance is crucial to finding competitive rates and flexible terms that suit your needs, and having loan pre-approval to streamline the process.
The lower your interest rate the better so make sure that you look outside of the big banks and also compare car loans from specialist online lenders and smaller banks like the providers outlined below.
Look for competitive rates and low fees and the ability to make extra repayments and pay off your loan sooner without penalty . The good news is that many lenders these days have fast funding which means funds can be in your account within a business day of approval. Getting your funds in advance will mean you can know exactly how much you can spend (and be prepared to negotiate on) before stepping into the car showroom.
Here are a few value-packed car loans to help get you started:
OurMoneyMarket New Car Loan (secured)
- Fixed interest rates from 6.28% p.a. (6.28% p.a. comparison rate*)
- No monthly fees, exit or early repayment fees
- Borrow between $5,000 up to $100,000
Borrowers can access fixed rates from 6.28% p.a. (6.28% p.a. comparison rate*) depending on your credit history. OurMoneyMarket’s (OMM) car loan comes without a monthly service fee, and you’re free to make extra repayments on your car loan without paying a penalty. Plus if you pay back your loan early, there’s no exit fee.
Do note that OMM charges an establishment fee based on your loan amount, and it can vary between 0-6% of the amount you borrow, based on your credit assessment. Loan terms range between 1-7 years, and you can borrow between $5,000 and $100,000.
Revolut Unsecured Personal Loan
- Fixed rates from 6.17% p.a. (6.17% comparison rate*)
- No monthly fees or penalties for early repayments
- Apply and manage everything in-app
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, receive your money into your Revolut account straight away.
You may be charged an upfront establishment fee for processing a new loan application. The establishment fee will only be charged once your loan is funded, and will be added to your total loan amount. Revolut says it will make it clear upfront whether establishment fees apply when you get a quote.
Loans.com.au New Car Loan Special (secured)
- Variable rate from 5.99% p.a. (7.12% p.a. comparison rate*)
- Approval available within 24 hours
- Borrow between $5,000 up to $150,000
Loans.com.au’s New Car Loan is available for new and demo vehicles, provided they’re no more than 18 months old and have done under 7500km.
Variable rates start from 5.99% p.a. (7.12% p.a. comparison rate*), and you can choose a loan term between 3 to 7 years. The provider also says you can receive approval within 24 hours, which could cut down the time you have to wait before heading to a car dealership.
Keep in mind that this car loan includes a $400 one-off application fee and an $8 monthly service fee.
IMB Bank New Car Loan (secured)
- Fixed rate from 5.99% p.a. (6.34% p.a. comparison rate*)
- Fast online conditional approval
- No monthly account fee
IMB Bank was a multi-award winner in this year’s Mozo Experts Choice Awards for Personal Loans, including the Car Loan and Used Car Loan categories.
This particular loan offers a highly competitive fixed rate from 5.99% p.a. (6.34% p.a. comparison rate*) when taking out a new car loan for vehicles up to 4 years old. There are no monthly fees or penalties for paying off the loan early, but there is a $250 application fee.
You can borrow up to $125,000 depending on your credit assessment, and IMB Bank says you can get fast conditional approval when you apply online.
* 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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