Borrow for a new or used car loan. Look to refinance your existing loan if you can get a better deal. Know what you are paying each month with a fixed interest option. Choose the term of the loan and how much you wish to borrow.
Why pay more? Car loans starting from 4.99% p.a. For fast approvals, low interest rates, and a wide range of loans and lenders, choose Car Loan World for all your car finance needs. No matter if its for a new or 2nd hand car, a novated lease, from a dealer or private sale, we can help you with our free service.
Get on the road faster with a CUA Fixed Car Loan for new and used vehicles up to 7 years old.
Borrow between $10,000 and $100,000 for a new or used car. Your dream car could be closer than you think with a Westpac Car Loan.
Bring your next dream purchase a little closer with a St George Secured Personal Loan. Choose between a fixed rate or variable rate and borrow between $3,000 and $80,000.
Choose between a fixed rate or variable rate and borrow between $3,000 - $80,000 using your car as security.
Applying for a car loan can allow you to buy the car you want, when you don’t have the money to cover the cost of the car upfront. Instead of paying for a car outright, with a car loan, you can spread the cost of the car over a number of years, making the car buying process much easier on your budget.
However, buyers who opt for car finance need to think about more than just comparing cars during that car buying process – they also need to compare car loans. If you want to get the most out of your car loan, you need to compare the options to pick the right one. That means knowing what to look for, what features are worthwhile, and how to compare the options.
Luckily, Credit World makes car loan comparison super easy. With a wide range of car loans in one place, Credit World allows you to compare car finance options side-by-side, to choose the right car loan for you. So, with that in mind, what do you need to know about car loans before you start your car loan comparison?
A car loan is a type of personal loan that allows buyers to spread the cost of a new or used car over a number of years. While loan terms vary according to the lender, car loans are generally taken out over one to five years, although some car loan options allow the buyer to repay the loan over a period of up to seven years.
Loan amounts can also vary – according to the lender and the borrower’s circumstances. The lender will usually assess the borrower’s credit history and income to determine the limits of the car loan.
Standard car loans are split into two main categories: those that are secured, and those that are unsecured.
Talking of interest rates, the type of interest applied to the loan is another factor to take into consideration. A car loan will either feature a variable or fixed rate of interest.
It’s worth bearing in mind that there are many types of car financing options out there. Let’s take a look.
This type of loan can offer a number of features, with a variety of options on the table. Buyers may find it easier to get approved with a secured car loan, paying lower interest rates with agreed repayments over a given period of time. Flexible terms are available and on-road costs can be included in the financing arrangement.
With this option, the financier buys the car and hires it to the borrower over a set period, with options for both individuals and businesses available. Once the entire loan has been paid off, the vehicle is transferred to the borrower. As a flexible option, it allows borrowers to finance the total cost of the car, or reduce repayments with a trade-in, deposit or final lump sum payment.
When taking out a finance lease, the financier buys the car and leases it to the borrower, usually with fixed, monthly repayments. The borrower is financially responsible for ongoing maintenance, and has the option to refinance, return, sell or buy the car for the residual amount at the end of the agreement.
In this three-way agreement, the borrower leases the car from the financier, utilising a novated deed on the borrower’s wages. A form of salary sacrifice on pre-tax income, this option also makes the borrower financially responsible for all car maintenance costs. At the end of the agreement, the borrower can choose to buy the car.
This option has the financier buying the car and renting it to the borrower. As the financier retains ownership of the car, it also retains all risks associated with ownership, including the residual amount at the end of the agreement. At this point, the borrower can choose to buy the car, continue to rent it, or switch to a lease on a newer car.
With this option, the financier provides the amount needed to buy the vehicle, to then hold a mortgage over the car, which is used as security on the loan. Borrowers may finance the total cost of the car, or reduce repayments with a trade-in, deposit or residual payment.
No one want to find the car of their dreams only to get rejected on their car loan. To help you improve your chances of getting approved for a car loan, check out these tips.
If you’re still weighing up your options and need to look at the pros and cons of car loans, here are the top factors for you to consider.
If you want to get the most out of your car loan, there are a few simple rules to follow.
Now it’s time to compare the options! Check out Credit World to find your perfect car loan today!