Choosing the right car loan can be tricky to navigate. From interest rates and fees to selecting the perfect loan term, there's a lot to think about. So no matter if you opt to borrow from a traditional bank or an online lender, there are a bunch of dos and don'ts on getting a car loan you should know about, to avoid being taken for a ride. Read on to find out Mozo’s expert car loan tips and compare top car loan deals on offer right now… Car loan dos:
Yes you can! … if you’re the right type of borrower. According to the Mozo database, three car loan providers are offering fixed and variable rate options that start with a 3 right now. This is extremely competitive, as the current average variable car loan rate on our database is 6.68% across new and used vehicles. Here’s what’s on offer:
Ready for that new car smell? Thousands of Aussies are looking to hit the road and in a fresh set of wheels too! Recent stats from the Federal Chamber of Automotive Industries (FCAI) revealed that new car sales rose by 22.4% in March 2021 from the same time a year prior.A total of 100,005 brand new cars were sold last month compared to 81,690 vehicles in March 2020 when many Aussie entered lockdown. In particular, SUVs saw the greatest growth in sales of 32%, while light commercial vehicles, including vans and utes, also jumped up by 28%.
In this current low-rate environment, refinancing has become common practice for many home loan holders to shave thousands off their mortgage. But is refinancing your car loan a good idea? Let’s take a look at the numbers: Since 2016, there have been eight cuts made to the Reserve Bank of Australia’s (RBA) official cash rate. It now sits at an historic low of 0.10% from 2.00%. The current average variable car loan rate for new and used vehicles sits at 6.68%. When you compare that to the average rate at the same time five years ago, 7.82% - that’s a 1.14% difference. In the case of home loan interest rates, the current average variable rate is 3.30% from 4.72% five years ago. While that is a 1.42% difference, the small margin can make a significant difference because home loans are generally around 25 to 30 years. So the question is, should you refinance your current car loan? We’ve weighed it up.
There are a bunch of new car models set to hit Aussie shores this year. Whether you’re after an eco-friendly Volvo XC40, a fresh BMW iX, a new model VW Golf, Subaru Outback or are even considering the latest Tesla Model Y - there’s plenty to get excited about. So, if a fresh set of wheels is on your 2021 to-dos, and you’re needing a low interest car loan to get there, it’s important you find the right loan to suit you and your price range. While something like the new model Skoda Octavia might set you back around $30,000, cars like Audi E-Tron GT could cost around $180,000 - not to mention the price tag a new-model luxury vehicle might come with. Ultimately, it’s important to give yourself the wiggle room to borrow what you need to cover the cost of your new car. Also keep in mind, that when borrowing for a car only borrow within your means. While a fancy whip might seem fun at the time if you are unable to pay down your loan over time you’ll risk spiralling into more debt and facing hefty late payment fees and interest repayments. With that in mind, here’s a rundown of where you might find a loan to match the car you have your eye on in 2021 …
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.