When buying a new car, most buyers will check out the market thoroughly to find which brand or which dealer has the best offers on the type of vehicle required. A traditional part of the buying process is also to try haggling with the dealer on the trade-in offer and/or the purchase price. Something that may not be as successful at the moment where supply of some makes and models is a lot tighter. When making the buy with finance, it also makes sense to compare personal car loans to get the cheapest deal.
At the moment, interest rates have been increasing as a result of decisions by the Reserve Bank of Australia (RBA) to lift the cash rate to bring down inflation. These decisions do have an impact on car loans interest rates and can lead to more variations across the market.
The cheapest interest rates and best personal car loans can be found if buyers understand the details and know how to approach the source process.
Secured and Unsecured Personal Car Loans
There are two main types of loans for private car buyers. Private buyers being buyers of vehicles for personal rather than business use.
Secured Personal Car Loans are the most widely-used loans for new vehicles and second-hand vehicles in good condition. The car is accepted by the individual lender, as suitable security against the finance.
Where the lender does not consider that the car is suitable security, buyers can consider an Unsecured Personal Loan.
Personal Car Loans Market
Personal car loans are categorised as consumer finance which is regulated by ASIC. Under the ASIC regulations all lenders offering loans for the purchase of private motor vehicles must be licensed and adhere to the Responsible Lender Guidelines. There are standard procedures that all lenders must follow when making car loan offers to customers. These include what assessments of the application must be undertaken, what information must be provided to the customer amongst other requirements.
Car loans are available through:-
- Banks – both the major Big 4 as well as some second tier or smaller banks.
- Finance companies – a wide selection of non-bank lenders operate in the motor vehicle lending sector.
- Motor dealers and manufacturers – usually offered through an arrangement with a finance company.
- Finance brokers – such as Jade Car Loans, that are accredited with multiple lenders and offer a service to buyers to source the most suitable loans from across a large number of banks and non-bank lenders.
In order to get specific car loan quotes based on the specific details of the applications, buyers will need to make contact with the lender and submit an application. The interest rate the lender is advertising may not be the rate that the buyer is offered. Using a calculator only provides estimates and is a general tool. The results are not quotes.
When requesting quotes for personal car loans by submitting an application, it is reported by the lender to the Credit Reporting Agencies. Having multiple quotes for the same loan may negatively impact the credit profile.
Getting sufficient quotes to make an informed comparison and decision can be time consuming and for some, confusing. Buyers can save time and more easily compare personal car loans interest rates with vehicle finance specialist broker, Jade Car Loans, than doing it themselves. Using us to source the cheapest offer does not impact the credit profile.
Personal Car Loans - Variations
In comparing loans, either specific offers or general lender information, there can be variations in the loan details based on:-
- Minimum and maximum amounts that will be approved generally and based on specific details of the application.
- Interest rate type – fixed or variable.
- Amount of interest rate – rates vary across the lender market.
- Deposit required – not all lenders may offer no deposit finance, some may request a larger deposit.
- Loan term approved.
- Assessment of credit profile is carried out by all lenders but some have stricter guidelines around approval criteria.
Advertised Rate and Comparison Rate
Lenders show an advertised rate and a comparison rate. The Comparison Rate is the interest rate applicable to the specific car loan application as detailed, including those seeking the best business car loan rates. The rate is calculated using the advertised rate and includes some, but not necessarily all, charges. Showing these two rates is required by law.
Does the type of car change the loan?
Loan offers are made primarily based on the assessment of the applicant. But the vehicle – new or used, will be assessed as will the price of the vehicle in relation to the loan amount requested. The actual type of car – sedan, SUV, hatch, will not generally impact the car loan offer.
Comparing Personal Car Loans with Calculator
Using a finance calculator is a great starting point for comparing interest rates and car loans. But it should not be relied upon solely. The rate and specifics of the loan which may be offered to the individual may vary, resulting in a different rate and repayment.
Calculators are best used for getting rough repayment estimates and a general idea of the difference in repayments for different loan amounts and differently priced cars.
Securing Cheaper Personal Car Loans
Our consultants assist customers by doing all the comparing of loans on the market that fit the specific profile of our customers. We then negotiate for the best rates and loan conditions and quickly present the cheapest offer for consideration by our customers. Cheaper personal car loans deals can be found quickly and easily by using our services.
Speak with Jade Car Loans at 1300 000 003 to easily compare personal car loans and secure the cheapest offer.
DISCLAIMER: IN REGARD TO MISREPRESENTATIONS AND ERRORS CONTAINED IN THE MATERIAL AS PRESENTED, LIABILITY IS NOT ACCEPTED. THE DETAILS AND CONTENT IS PROVIDED FOR CAR BUYERS AND INDIVIDUALS AND BUSINESS SEEKING FINANCE PURELY AS GENERAL INFORMATION. THIS IS NOT PROVIDED AS THE ONLY SOURCE OF FINANCIAL INFORMATION. ANYONE THAT CONSIDERS THAT NEED FINANCIAL ADVICE ABOUT THEIR SPECIFIC REQUIREMENTS SHOULD SEEK THEIR OWN FINANCIAL ADVISOR.
