Used car sales skyrocket as fears of public transport grow
For a lot of us, purchasing a used car is the simple way to avoid forking out a fortune for a new set of wheels. But according to new figures from data aggregation firm Datium Insights, Aussie drivers are now paying more than 40% more for second hand cars compared to pre-Covid in 2019.
Two common reasons car sales have surged over the last few months is due to the fear of public transport as well as a desire to explore the country on road trips.
SUVs and commercial utes were particularly popular in terms of sales.
RELATED: Ditching public transport for your car? Here’s how to cut the cost of driving
Datium Insights analyst, Tanim Ahmed said he witnessed a 15% drop in car sales during the first few months of the Covid-19 pandemic due to social restrictions and other feelings of uncertainty. However, it didn’t take long for the market to pick back up again.
“When trade started to resume again, the stock of new cars [from international manufacturers] was so restricted people were limited in what they could buy and that demand spilled over into used cars. That’s an effect that’s still happening today,” said Ahmed.
And it’s not just car sales making a splash in 2021, mechanics have also experienced a sudden rise in business, thanks to a rise in the number of drivers requiring pre-purchase inspections and/or roadworthy certificates.
Funding your used set of wheels in 2021
With used car prices hitting unprecedented highs, many Aussies may be left feeling unable to foot the bill on a much needed purchase.
One way to cover some or all of the cost on your second hand vehicle is to take out a used car loan, these are car loans that are tailored made for the purchase of second hand vehicles and can either offer a fixed or variable interest rate.
Depending on the type of car loan you opt for, according to the Mozo database rates range from 3.97% to 11.49%, so it pays to do your research.
Other than the interest rate, it’s also worth comparing any fees or any additional features the loan may come with, such as a redraw option or the ability to make extra repayments.
You can get your search started by heading over to our used car comparison tool, which currently compares a range of different options from large banks to credit unions and online lenders.
Compare car loans - last updated February 27, 2021
New Car Loan
Including Demo, Fixed, Secured
Interest rate
comparison rate
Monthly repayment
4.67% p.a.5.22% p.a.based on $30,000
over 5 yearsTerms from 3 to 5 years. Representative example: a 5 year $30,000 loan at 4.67% would cost $34,096.76 including fees.
CompareCompareNew Car Loan
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^.
- Interest rate
- 4.67% p.a.
- comparison rate
- 5.22% p.a.based on $30,000
over 5 years
- Upfront fees
- $400
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- $700.00
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $100,000.00
- Minimum loan term
- 3 Years
- Maximum loan term
- 5 Years
- Security required
- Vehicle
Read our Mozo Review to learn more about the loans.com.au New Car Loan
New Car Loan
Fixed
Interest rate
comparison rate
Monthly repayment
4.89% p.a.to 8.89% p.a.5.44% p.a.to 9.46% p.a.based on $30,000
over 5 yearsTerms from 3 to 7 years. Representative example: a 5 year $30,000 loan at 4.89% would cost $34,276.58 including fees.
CompareCompareNew Car Loan
Enjoy competitively low rate car loans from 4.89% (comparison rate 5.44% p.a.) between $10,000 and $100,000 for new, demo and used vehicles. Take advantage of flexible 3, 5 or 7 year loan terms. No early repayment or exit fees. You must be 21 years or over to qualify and earn above $35,000.
- Interest rate
- 4.89% p.a.to 8.89% p.a.
- comparison rate
- 5.44% p.a.to 9.46% p.a.based on $30,000
over 5 years
- Upfront fees
- $399
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Repayment options
- Monthly
- Early repayment penalty
- 0
- Minimum loan amount
- $10,000.00
- Maximum loan amount
- $100,000.00
- Minimum loan term
- 3 Years
- Maximum loan term
- 7 Years
- Security required
- Vehicle
Read our Mozo Review to learn more about the Plenti New Car Loan
No Fee Secured Personal Loan
Interest rate
comparison rate
Monthly repayment
4.45% p.a.to 15.45% p.a.4.45% p.a.to 15.45% p.a.based on $30,000
over 5 yearsTerms from 2 to 7 years. Representative example: a 5 year $30,000 loan at 4.45% would cost $33,516.53 including fees.
CompareCompareNo Fee Secured Personal Loan
Pay zero fees on loans up to $100,000 with NOW Finance. With no establishment fee, ongoing fees or early payout fee. What’s more, get your personalised interest rate in two minutes with no impact on your credit score!
- Interest rate
- 4.45% p.a.to 15.45% p.a.
- comparison rate
- 4.45% p.a.to 15.45% p.a.based on $30,000
over 5 years
- Upfront fees
- $0
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Repayment options
- Weekly, Fortnightly
- Early repayment penalty
- 0
- Minimum loan amount
- $15,000.00
- Maximum loan amount
- $100,000.00
- Minimum loan term
- 2 Years
- Maximum loan term
- 7 Years
- Security required
- Various
Read our Mozo Review to learn more about the NOW Finance No Fee Secured Personal Loan
Car Loan
Under 3 years old, Fixed, Secured
Interest rate
comparison rate
Monthly repayment
6.99% p.a.8.10% p.a.based on $30,000
over 5 yearsTerms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 6.99% would cost $36,528.67 including fees.
CompareCompareCar Loan
A car loan with flexible loan repayment structure, choose between a weekly, fortnightly or monthly repayment schedule. Rates start from 6.99%. however to receive minimum rate applicants must be homeowners or have a mortgage, have an excellent credit rating and be a new Personal Loan customer.
- Interest rate
- 6.99% p.a.
- comparison rate
- 8.10% p.a.based on $30,000
over 5 years
- Upfront fees
- $295
- Monthly fee
- $10.00
- Exit fee
- $0.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- $750 for loans over $12,000 otherwise 6.25% pro rata
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- -
- Minimum loan term
- 1 Year
- Maximum loan term
- 7 Years
- Security required
- Various
Read our Mozo Review to learn more about the Latitude Car Loan
^See information about the Mozo Experts Choice Car Loans Awards
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