Guide to car loans

So you’ve decided to buy your first car. Hello freedom! But there are a few costs to know about first:

There is no doubt about it, cars can be expensive, but for many Aussies access to a car is essential, so the thought of not being able to pay off a car loan can be pretty stressful.

Did you know that there’s such a thing as ‘dealer delivery’? Are you aware that ‘on-road’ costs are sometimes added as a cost on top of what you pay for your car? These are just some of the costs you need to be aware of when buying your next car. We go into it a little further here. If you’re already familiar with the costs of buying a car, it’s still worth your while to take the time out to remind yourself of a few pointers. There may be some new ones here too!

You’re buying a car? Well break out the champers! Ok, maybe not yet, because we have a lot of work to do yet. You’re going to have to have a little think about how you’re going to finance your new set of wheels and for how long. It’s all about budget and wishlist. If you can make a compromise somewhere in between then you’ll be cracking out the bubbly in no time. Let’s have a closer look at your options: 

So you’re getting a car loan for a new car. This is exciting! A car that’s never been driven before, a car that's pristine all over and is completely and utterly yours. Your very own dream-machine, because right now, with the choice of lenders out there you can have any car you want! Within reason of course.

Think of borrowing money to buy a used car similar to borrowing a cup of sugar from your neighbour. Out of social etiquette you return the favour with a baked cake. So when it comes to borrowing money, turn the cake into the interest rate that you’re charged, because you’re going to be repaying more than the price of the actual car in the long run. In the end it’s your way of saying: ‘thanks lender for letting me borrow a large amount of money at once.’

How long is a piece of string? No, but really, it’s probably obvious to you how much you can afford to spend on a car, so keep your blinkers on and start with some realistic car research. We’re not saying that drooling over your fantasy car isn't allowed, just be realistic. And there’s more to your research then you first anticipated.

Say what? A car repair loan? Well now we’ve heard of everything! But it makes sense, doesn’t it? If you can’t afford to upgrade or trade in, repairing your car for any major dings or mechanical problems may be the way to go. After all, you love your car to the max, and wouldn’t want to part with it anyway, right?

So you're thinking of selling your car. Whether you're upgrading, giving yourself a little cash injection or just feel like going car-free, if your current vehicle has an outstanding loan, there are a few things you need to know. 

Buying a car, whether new or second hand is an exciting time. 

When buying a car, where do you start? Will your decision be based on the shape, the brand or how many passengers it can carry?

Cars are a necessary part of everyday life that let you get to work, the shops or weekend destinations conveniently. But they can also be expensive and sometimes shelling out a large lump of cash up front isn’t a viable option. That’s where car loans come into play. A car loan can help you get the finance you need, for the car you want.

Whether you’re about to apply for a car loan or still just thinking about it, it’s a good thing you’re here.

How exciting! You’re about to apply for a car loan, and get yourself a new set of wheels.

A car loan could be your saviour when it comes to turning your auto dreams into reality. Whether you choose to take out a car loan from a bank, credit union, peer to peer or online lender there are many terms and phrases or fees and features you may not be aware of.

Used cars come with character, there’s no doubt about that. And the truth is, if you’re opting to buy through a private seller, it’s often the cheaper (and sometimes more convenient) option. However, whether you go through carsales.com, Gumtree or Facebook Marketplace there is an element of risk in buying a preloved vehicle privately. Unlike with a used car dealership, the car you buy will have no Guarantee or Warranty attached to it. Similarly, any faults with the vehicle aren’t covered under Fair Trading and you’ll have to do all the paperwork in relation to the transaction yourself. That’s not to say that buying a used car privately isn’t a viable option, because it is. It’s just about being equipped with the knowledge you need to avoid driving home in a car that’s not up to scratch. So its with this in mind that we answer five of the top asked questions about buying a used car from a private seller: 

If you’re on the market for a car loan to fund a fresh set of wheels, it’s time to get familiar with the three main things to look for. 

Whether you’re looking for a car to get you from A to B or want to get behind the wheel of your dream ride, there’s good news. Wisr, known in the market for great value personal loans, have just launched their very own secured car loan that will have you all revved up. Joining other online lenders with secured car loans, Wisr offers car finance with a competitively low comparison rate starting just above 6%. Yes, you’ll need to have excellent credit to get the best rates they offer, but with a variety of rates to suit all borrowers, you’ll be able to borrow between $5,000 and $50,000 and enjoy zero early repayment or exit fees too.“The entry of Wisr into the secured car loan space is great news if you’re in the market for a new car and you’ve got a solid credit history”, said Mozo Expert Peter Marshall.“With post-pandemic change in the way Australians use and purchase new cars, there has been an increase in lenders competing for business, making now a great time to purchase a new vehicle”, he further explained.So if you’ve been thinking about getting yourself a new car, now could be a good time for you to join other Aussies reaping the benefits of new-to-the-market, low rate car loans.

Itching to get your hands on a fresh set of wheels? Unless you are sitting on a whole bunch of savings, you may need a car loan to help you get there. There are two main types of car loans: a new car loan and a used car loan. Depending on whether you want a brand new or pre-loved ride, this will determine what sort of loan you take out. So where do car loan rates sit in August 2020? According to the Mozo database the average new car loan rate sits at 6.41%. Meanwhile the average used car loan rate sits at a slightly higher 6.98%. But who wants just average right? Check out some of these killer car loan deals and you could be hitting the road sooner!