Good Car Loan Deals

jwsmith1989 on 07/03/2016 - 06:35

Hi Guys,

I'm buying a 1yo used car and am planning to finance ~$20k of it with a loan over ~4 years. I'd like to reduce my payments by having a ~$10k balloon at the end, I'd prefer a fixed rate and ideally would like the ability to be able to sell and pay it out early with minimal or penalty.

Can anyone point me to any good deals available at the moment? I've done a bit googling but am finding it difficult to actually compare the various products - I'm finding that there's endless fees and charges buried in fine print and getting a 'net total cost' figure is impossible.

The dealer's finance dept is going to call me today to discuss their options but I'm wary and would like to be better informed before that call.

Thanks heaps in advance.

Automotive

Comments

  • Brainwhacker on 07/03/2016 - 08:52

    Be vary careful; dealers finance option is usually the worst; the things I think you need to watch out for are the establishment fee and the early termination/additional repayments. The last time I bought a car I should have gone to a broker who could have given me options.
    These guys for eg - http://www.cairnscarloans.com.au/carloans.html - depending on where you are
    I am also looking for options at the moment; still finalising the car but will be good to see what you can find.

    • jwsmith1989 on 07/03/2016 - 09:06

      Yeah, that's what I'm afraid of! I'll keep researching and let you know how I go.

  • djones145 on 07/03/2016 - 08:53

    there are no good car loans… period, especially from car dealers, the rates are terrible and fees are terrible and complicated

    you have a home loan? maybe get some funds there
    maybe try a personal loan from the big banks, Citibank had quite good rates before

    • jwsmith1989 on 07/03/2016 - 09:06

      That's probably true, but I'm sure some are better (or less worse) than others.

      Nope, no home loan unfortunately.

      • naritas on 07/03/2016 - 10:30
        +2

        Hi Jwsmith1989, @djones145 makes a good point. Speaking as credit advisers that do vehicle finance, home loans and commercial loans, you'll generally find that personal vehicle loans are relatively expensive - especially in comparison to home loans. Given that you don't have a home loan to call upon, we'd suggest an approximate guide for a personal vehicle finance rate would be 6.5%-11%p.a.. The actual rate will largely be determined by your credit profile and the specifics of the vehicle you are looking to finance (as well as fees/charges). There are some cheaper rates than that out there, but they usually require the applicant to be a homeowner and/or the vehicle to be new. Also, as @brainwhacker mentioned, the fees can quickly add up for these types of loans, so it's usually best to focus on the total cost of borrowing as opposed to the rate.
        If you'd like some guidance, we have over 100 lenders on our panel and would be happy to assist. Please feel free to send us a PM.
        Hope this helps.

  • oscargamer on 07/03/2016 - 10:26

    a good starting point

    http://www.canstar.com.au/car-loans/

    but rates are negotiable…a bit

  • Euphemistic on 07/03/2016 - 13:46

    So you want to borrow $20k and pay interest on it, then after four year still have $10k left to pay? Sounds crazy to me. If you can't pay back $20k in four years, you probably should be rethinking how much you need to spend on a car.

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