Car Loans

A car loan is usually a secured personal loan: the lender registers an interest in the vehicle, which allows a lower rate than an unsecured loan, and you own the car from day one. Loan terms typically run from one to seven years, rates are usually fixed for the term, and many lenders allow extra repayments or early payout, sometimes with a fee. Lenders assess your income, living expenses, existing debts and credit history, along with the car's age and value — older vehicles, especially at the end of the loan term, may attract a higher rate or a shorter term.

Dealership finance can be convenient, and occasionally very competitive when a manufacturer subsidises the rate, but it's worth reading the fine print. Low advertised rates are sometimes paired with a large balloon payment, add-on insurance products or a higher vehicle price. A balloon lowers your monthly repayments but leaves a lump sum at the end that must be paid, refinanced or covered by selling the car. Before signing anything, get an independent comparison: we can benchmark the dealer's offer against our panel within a day or so, and you're free to use that to negotiate.

If you use the car for business and hold an ABN, a chattel mortgage may suit better than a consumer car loan, with potential GST and depreciation benefits your accountant can confirm. Employees whose employer offers salary packaging may consider a novated lease. Whatever the route, avoid submitting multiple applications with different lenders in a short period — each is recorded on your credit file — and be wary of financing a car over a term far longer than you'll keep it. We arrange finance for dealership purchases, private sales and auctions, and the lender pays the seller directly at settlement.