So you’ve found your dream car, but not the Australia car loans that suit your unique financial circumstances.
Sifting through thousands of car loan deals takes a lot of time that you may not have, and the clock is ticking on the car. If it’s a collectible, someone else is looking to buy it too. If it’s a limited-offer deal on a new car, you’re not the only one rushing to find their own best car loans to finance their purchase for it.
What if we said there’s a way to make the search for car loan finance much easier and faster?
Stay with us for this article and find out.
The answer depends on a few factors.
Most auto loans come in two types: secured or unsecured. These loan types are differentiated by their asset security – that is, secured Australia car loans require collateral, while unsecured loans do not. If your credit score is recovering from a poor rating, you may have a harder time securing low monthly car payments on loans for used cars.
If you have an asset that you can pledge as collateral, a secured loan may adjust the vehicle credit you pre-qualify for. Unsecured personal loans may also offer more flexible terms without the need for collateral.
If your credit score is good or excellent, you may have more options on interest rates for car loans. The average car finance rate on your car loan APR may also be lower than when you conduct a bank car loan comparison.
When buying a used car, the interest rate will likely depend on how it’s financed and what state the used car is in.
Used car dealerships often have in-house auto loan options, and many buyers of used cars may prefer them over private sales. One reason for this is that some states require statutory guarantees that the used vehicle is safe and ready to drive. They are also required to guarantee the vehicles aren’t owed any debt, as such vehicles may fall under ‘bad faith’ sales and get their buyers in legal trouble. Buyers may also trade in their current vehicles or refinance them through dealerships.
Meanwhile, private sales are the most common means of acquiring collectible or vintage vehicles. Roadworthiness is independently checked by either the buyer or the seller, and these sales often require full payments. Private sales are typically financed with Australia car loans from lending providers.
Both options have varied interest rates and fees; a dealership may include a processing fee, or a private seller may charge the buyer for the car inspection costs.
CarClarity can help with the financing process. Our smart tech was developed as an answer to the demand for a more streamlined means of searching for car loan products in the current lending market.
On the CarClarity platform, we soft-check your credit report with credit reporting agencies – this process won’t impact your credit score the way hard checks do, which makes them ideal for comparing Australia car loans.
CarClarity’s smart tech pulls auto loan offers from over forty car loan finance partners, comparing vehicle financing rates across over a thousand loan products to find the top matches for your credit profile.
If the top-matched loan offers fit your requirements or preferences, you may proceed and complete the application process with your selected vehicle credit partner for a pre-approved car loan. If you’d like more options for a private sale, CarClarity can also organise financing for you – just get in touch with our car loan experts, and they’ll walk you through your consumer car loan options.
Depending on where you live, you could get a driver’s licence at sixteen years old – but to apply for Australia car loans or any other form of credit, you must be at least eighteen years old. Licenced and registered credit providers, especially auto loan companies, are legally obligated to refuse applications on finance for a car loan if the applicant is a minor.
However, if you’re a minor and your heart is set on a vehicle, your parent or guardian may apply for a personal car loan under their name in your stead. Doing so will involve trust and discipline, as your parent or guardian will be responsible for such credit obligations.
If you’re only a few months away from turning eighteen, we suggest waiting until before applying for a car loan. You may also save up for a sizeable down payment while waiting for your birthday – a down payment will help you negotiate for low monthly car payments on Australia car loans.
You don’t need to rush headlong into a car purchase right away. Consider your options, save up for more bargaining power, and research diligently on car loan finance best practices in the meantime. Who knows – you might even get a better deal if you wait a little longer.
Discover efficient auto financing with CarClarity’s help
CarClarity is a rising innovator in the online car financing market. With over forty vehicle-specific lending partners and over a thousand loan products between them, we have been matching customers from all walks of life and unique financial standing with the auto loans that work for them. Our intuitive tool allows us to show you the top three matches based on a few details such as the amount you want to borrow, desired loan term, and current income.
Convenience right at your fingertips – find your top-matched auto loans with us today!
CarClarity is an online financial comparison service and is owned and operated by CarClarity ACL Pty Ltd ABN 50 606 243 243 / ACN 606 243 243 and Australian Credit License 478 874.
CarClarity provides you access to our expert team who can assist in selecting suitable car loans from our panel of 40+ lenders and over 1000 financial services products. The financial products compared on this website do not necessarily compare all features that may be relevant to you and CarClarity does not compare all rates in market.
All applications are subject to the credit provider’s credit assessment and loan eligibility criteria. Terms, conditions, fees and charges apply. Information provided is factual information only, and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser. CarClarity may receive a commission from lenders we recommend.
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