Comparing Car Financing Options in Australia

Which lender has the lowest interest rate on a car loan?

To be honest, the answer to this question differs significantly from lender to lender. Generally speaking, the lowest interest rate of all lenders in our panel comes in at a fixed rate of 3.94%. However, the advertised start rate is not the best guide for comparing mortgages, as it depends on your credit score, the age of the vehicle you buy, your living conditions, and the length of your loan.

The best way to compare interest rates on used or new car loans is to consider all charges and look for a custom comparison interest rate tailored to you. The lender offering the lowest comparison rate varies from person to person why it is important to compare multiple lenders when making car loans.

What is the comparison rate of car loans?

The comparison rate is measured as the true interest rate you pay because it considers all charges related to your car loan. For this reason, it is regarded as the best measure of loan interest.

CarsFinance identifies the comparison rate for each quote you offer, so you can quickly compare which car loan costs the cheapest. We recommend that you rely on comparison rates and monthly repayments rather than annual rates or estimated interest rates because it can be misleading.

For instance, few lenders may advertise very low-interest rates to attract new customers searching for the deals that best suits their requirements, but these same lenders have high setups, monthly, related to car loans. Or they often have a closing fee, resulting in a significantly higher comparison rate.

Be careful if you rely on online resources such as car loan calculators. This resource may not accurately calculate all charges associated with a particular new or used car loan. This may result in interest rate comparisons. Overall, it's a worse result for you.

Before applying for a car loan, the comparison rate you are looking at is customized built on your credit history, car age, and other personal information that the lender considers calculating the rate you will be charged. It is also essential to be done. Otherwise, rising interest rates (and therefore loan repayments) when signing a contract can be a nasty surprise for you.

What are the sources where can I compare car loans?

You can find lot more options on the internet that can help you find the best loan options, but there are a few things to consider seriously while comparing a car loan to a third party.

Online Comparison sites

These online comparison sites have excellent content and guides to help you in the process of buying a car. But, keep in mind that car loan offers are unlikely to occur when comparing financial options on a comparison site. To avoid disappointment, check directly with the product supplier to see the price based on the car you buy and your personal information.

Car loan brokers

There are many old school mortgage brokers in Australia, but often you don't compare multiple options to make sure you get the best mortgage. Unlike CarsFinance, most brokers have one or two "reliable lenders". They rely on them because they don't have the technology to instantly scan a myriad of lenders to reduce the cost of a loan.

CarsFinance! Your trusted partner

With CarsFinance, you can compare secured and unsecured mortgages from over xx lenders by filling out an easy online form you just have to provide basic information. It's completely free, and you can apply with confidence knowing that you've found the best deal. You also understand that the prices shown include all charges and fees and are fully customized not to change when the deal is locked.

How does my credit score affect my car loan rates?

The higher your credit score, the better the options of rate you will have. But keep in mind this does not hold in all cases for all lenders. Some suppliers only consider the age of the vehicle and other personal factors when pricing the loan. Use CarsFinance confidently to find out which lender has the best option for you based on your credit history.

Does getting a quote adversely affect my rating?

If you apply directly to the lender, they may scrutinize your credit file before giving you a custom rate. This is the only way you know exactly how much you will pay for your car loan is in your credit file.

At CarsFinance, we perform a "soft credit check" for your confidence. This lets us provide precise loan interest rates without tracing your credit file.