The new car loan offers you need to know about
From a new pair of shoes to a tall bottle of red, many Aussies may already be preparing their Christmas wishlists. But for others, keys to a new car might be what they’re expecting to see in their stocking.
But given that not all Aussies have bank balances as big as Santa’s, many will look to a car loan in order to help fund their Christmas wish.
And it appears that many lenders in the Mozo database had the same train of thought, with five providers sharpening their rates in September, including a generous rate cut from a major bank and an even bigger discount for a mutual bank.
CommBank slashed its Secured Car Loan rate from 8.49% to 6.99%, producing a discount of 1.50%, while Greater Bank made a minor reduction to its New Car Loan from 5.99% to 5.75%.
Heritage Bank were also among the providers who made cuts to their suite of Fixed Secured Car Loans and their Unsecured Personal Loan, shaving a massive 3% off all rates.
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IMB also reduced their Unsecured Personal Loan to 10.90% (previously 11.69%), but the biggest personal loan cut for the month was Police Bank - dropping their Personal Loan rate from 9.99% to 6.49%, or a discount of 3.50%.
“Five rate cuts for the whole month might not seem like a big deal, but it’s the size of the discounts that really matter,” said Mozo Product Data Manager, Peter Marshall.
“Around this time of year, car retailers and manufacturers roll out sales, prompting lenders to cut their rates to entice potential customers.”
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And if you’re an Aussie ready to pick up a new set of wheels, Marshall has reminded customers of the importance of shopping around.
“It’s easy to get caught up in the hype of newly discounted rates, but you’ll need to compare other features, like whether you’ll be charged a fee for paying out your loan early,” he said.
“Ongoing or monthly services fees are also something to watch out for. There’s no point in scoring a super low rate only to have to fork out hundreds of dollars in service fees.”
Want to get in early by comparing even more options before Christmas? Our car loan comparison tool makes comparing options easy, so check it out today!
* 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.
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