Car Loans

So you want a car loan in Australia? Here you can find insider tips and deals from Mate, the sort of things to consider before buying that new car! Saving on your car finance can make a big difference on the total amount you end up paying.

Whatever you want to know, we’ll help you find it: ANZ car loans if you’re going with Australia’s most popular bank – or bad credit car finance if you have a tricky case, the best car loans via comparison, ING & Wespac car loans – and even cheap car loans or loans for used cars!

Great, so ready to buy new wheels mate? Use Mate.com.au to find the best deal on car loans in Australia.

Shopping for a Car Loan? We at Mate.com.au Can Assist You!

When you are availing a new car or a used one, you would typically shop around for a car loan. Here in Australia, there is a wide selection of available auto loans. Considering their quantity, you may find it challenging to decide which borrowed funding to choose. Do not worry because here at mate.com.au, we can aid you in finding the right offer that suits your budget and needs. You do not have to worry about getting your funds and time squandered because you can trust us.

If you have decided that it is time for you to buy a new set of wheels or a used one but of still sound condition, we can aid you in comparing auto loan rates thoroughly. We differentiate 180 car loans from over 70 lenders and non-bank establishments to help you discover the correct offer. Plus, we have a handy comparison table that displays minimum monthly repayments, fees, and the maximum cost that you may incur when taking out the loan. Our Switch and Save Calculator is a feature that differentiates savings from more than 500 car loans as well. It facilitates you to know how much money you could keep through changing your loan, too. Hence, feel free to read the entries here on our portal. We are sure you will find a suitable loan for your much-sought-after car!

How Do I Know If an Auto Loan Is an Excellent One?

Plenty of car loans come with advantageous features which make your life easier while you settle your dues. Among these perks are redraw facilities and optional extra loan repayments. You will find out if you have taken out a top auto loan through the following conditions:

  1. Does your auto loan have a low-interest rate?

If the car loan you take out from one of the Australian banks or non-bank lenders features a low-interest rate, it would surely make a positive difference. It is because you could benefit from the flexibility of being able to select how often you could make repayments. Above all, you could save more of your hard-earned money.

Does the loan you took out feature convenient redraw facility

and additional repayments?

If you are comfortable with setting additional repayments, and you utilise the feature effectively, you would end up paying less in interest because your lender applies the rate only to how much you owe. A practical redraw facility dipping into additional repayments is another outstanding auto loan feature. You can utilise a redraw feature to settle things when other life expenditures materialise, and then, make extra loan repayments when you have spare money. Do not forget that redraw facilities merely come with variable rate auto loans. Also, some lenders have redraw charges and set redraw minimums. These fees may cost more than the importance of freedom to you.
Does your auto loan comprise little to zero charges?

When you look at sign-up costs and monthly fees individually, they may look like tiny and trivial sums of money. However, did you know that they truly do add up? One of the effortless methods to factor in all the fees involved in a possible auto loan offering is to take a look at the differentiation rate. This rate type comprises overhead costs, such as on-going charges, headline rate, and application fees. We advise you to keep in mind that, even if you choose a car loan with low fees, most service providers will charge you more for making a repayment that is behind schedule.

Does your loan feature minimal early auto loan repayment penalty?

If your car loan requires you to have zero or minimal early auto loan repayment fine would usually depend on the interest rate you select and who you ask. Some borrowers opt to keep their early auto loan repayment choices open. On the other hand, other borrowers prefer to stick to the original auto loan repayment schedule. It is because it suits their monetary circumstances best.

As you can see, you can avail the appropriate auto loan without encountering hassles. You can direct your enquiries to us so you can stay guided!

Frequently asked questions

When taking out an auto loan, should I select a variable or fixed rate?

If you have finished comparing car loans already, you may have encountered these two expressions: “variable rate” and “fixed rate.” Remember that choosing between the two can significantly affect how much money you end up repaying in fees or interest. The rate kind you want should depend on how you plan to utilise your auto loan.

For car loans with a fixed rate, the interest rate is sure to remain that way for the entire duration of the loan term. Hence, you will know precisely how much you need to pay your lender in interest as you follow your auto loan repayment arrangement. On the other hand, auto loans with variable rates do not feature the stability that fixed-rate loans have. Over your loan term, the interest rate with variable rate loans can get modified, whether it is at or against your favour. Nevertheless, these types of auto loans rarely consist of early loan repayment charges. A variable-rate auto loan could be suitable for you if you want the chance to clear your debt whenever it is opportune for you, and if you could manage a slight rate alteration.

 

What are the requirements that I need to meet when applying for an auto loan?

If you have decided that you need to take out a car loan, you need to perform these two steps:

  • Make sure that you possess a clean – and it is better if it is an impressive – credit record.
  • Prepare essential documents, like the statement of your liabilities and assets, ID, and
    evidence of income.

Once you have these requirements in your possession, you can apply for an auto loan already. You can perform it on the Internet, and approval can take as fast as a few minutes or a few hours. Moreover, if you opt to apply in person, we advise you to head to a local branch of your preferred lender. You can call its customer service hotline, too, for more details.

How can I tell if an auto loan is a trap?

You can spot an auto loan trap and avoid it by these telltale indicators:
The auto loan does not feature enough flexibility.

The car loan may let you make additional loan repayments, but it does not have a redraw facility. Hence, you may find this loan constraining. Thus, it is significant to evaluate the flexibility with fees and interest rates because you would feel glad to compromise on the interest rate for the perks you desire.

 The auto loan’s interest is very high.

We advise you to treat high auto loan interest rates similar to nasty omens, and you surely should get rid of them. Keep in mind that the rate should be reasonable instead of being high when securing your automobile to a loan.

You find plenty of fees that you need to settle.

Auto loans with competitive interest rates can still inconvenience you with sign up and monthly charges. This trap can return to trouble you over time. Therefore, ensure that you steer clear from these kinds of loans. In this manner, you would be able to keep your hard-earned funds safe in your bank account.

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