![]() Unsecured loans, on the other hand, typically offer higher interest rates than their secured counterparts, but might represent less risk to a borrower who is crazy about their wheels. As secured loans are less risky for lenders, they often come with lower interest rates. That means if they fail to meet their repayments, their lender can repossess their car or asset to recover any losses.īut there is an upside. A borrower signing onto a secured car loan will be using their car (or another valuable asset) as security against their loan. Let’s first break down what it means to have a secured car loan. And once again, there are benefits and downsides to both. The choice between a secured or an unsecured car loan also awaits would-be-borrowers. Actual repayments will depend on your individual circumstances and interest rate changes. Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for the term and for the loan amount entered. ![]() Comparison rates are not calculated for revolving credit products. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Different amounts and terms will result in different comparison rates. WARNING: This comparison rate applies only to the example or examples given. The comparison rates for unsecured personal loans are applicable for unsecured loans only. The comparison rates for car loans and secured personal loans for the relevant amounts and terms are for secured loans unless indicated otherwise. The comparison rates in this table are based on a loan of $30,000 and a term of 5 years unless indicated otherwise. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. The link to a product provider’s website will allow you to get more information or apply for the product. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. Fixed & variable car loans for new carsĪll products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. That could be helpful if interest rates are lowered during the life of your loan, as your repayments could be reduced as a consequence. On the other hand, the interest charged on variable-rate loans might fluctuate from time to time. That can provide peace of mind and potentially save you a decent chunk of cash, as your repayments likely won’t go up if interest rates rise after you’ve signed on. Let’s break it down.Ī fixed rate loan means your interest rate will stay the same for the duration of your loan, or for an agreed-upon time. Fixed or variable rate car loans?īeyond how much you want to borrow and how much you can afford to repay, there are a few other decisions that you’ll probably need to make when choosing a car loan.Īrguably the first is whether you want a fixed-rate loan or a variable-rate loan. If you’re not after quite that much, a smaller personal loan might be more your style. However, most lenders only offer car loans of between $10,000 and $100,000. Typically, a lender will allow you to borrow a certain percentage of a car’s value. How much you might be able to borrow with a car loan will depend on many factors, such as your credit history, regular income, and the type of car you’re hoping to buy. If you’ve still got questions or queries about this type of finance product, keep scrolling to learn more. If you’re wondering whether you can afford a new car loan, or are curious if your current repayments pass the ‘sniff test’, take ’s Car Loan Calculator for a spin. After they do so, the borrower will pay back the cash, plus interest, over a set period of time – typically between one and ten years. Like home loans, car loans see a lender providing a borrower with a set amount of cash to purchase an item – in this case, a car. That’s where a car loan can come in handy. If you were eyeing off a Toyota Hilux, Ford Ranger, or Tesla Model Y – all popular choices for new car buyers – you’ll probably be forking out tens of thousands of dollars. When you factor in buying your new wheels, getting it on the road, and forking out for registration, insurance, and running costs, it's no wonder that so many Aussies consider getting a car loan when they’re in the market for a new ride. ![]() It’s no secret that cars can be expensive.
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