New Car Finance

Car Loans for Personal Use

After a new set of wheels? Let Aussie Car Loans take the hassle out of obtaining your car finance, whether you’re buying a new or used car from a car dealership or a private seller. Unlike the banks that give priority to home loan customers, the car loan customer comes first at Aussie Car Loans.

As a credit representative of a respected finance company, we can tailor a loan package ideal to your individual situation with competitive interest rates. With over 30 years in business and competitive fixed loan rates for new or used vehicles, we offer a fast and simple application for all types of vehicles. This includes new or second-hand cars, luxury vehicles, imports, vintage or classic cars, motorcycles, caravans and more.

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The most difficult part of buying a new car is paying for it. A car is one of the most expensive and important purchases you’ll ever make. It’s why so many find the whole process equal parts exciting and anxiety-inducing. 

The good news is you don’t have to wrack your brain thinking up different ways to finance your new car. The easy solution to your new car finance woes is simple—apply for a new car loan. 

A new car loan has a plethora of benefits that can help you get the car of your dreams immediately. New car loans also come in various shapes and sizes. You’re sure to find a loan that match your goals. Regardless of whether you need a petrol car or an electric vehicle, for business or personal use, there’s a loan out there for you.  

Aussie Car Loans can help you find the best auto financing lenders have to offer. If you need more convincing, here’s what a new car loan can do for you: 

Advantages of new car loans 

A new car loan is a type of auto financing that lets borrowers purchase a car that meets certain criteria. Once the lender approves the loan, you’ll receive the money needed to make your car purchase.  

As a borrower, you’ll make regular repayments to pay off the loan plus interest. Taking out a car loan gives you the freedom to get the car you need when you need it. Read on to learn about the benefits of new car loans. 

No more waiting to buy a car 

If you want to buy a car right away, you need some serious cash. The problem is, not all of us have a few thousand dollars just lying around. And it could take months or even years to save up to buy a new car. This is where a car loan comes in to save the day. With a car loan, you don’t need to pinch pennies for a year or more just to afford a new ride. 

You can borrow the total purchase price of a car with a new car loan. You don’t have to wait impatiently until you have enough money. Once approved for the loan, you buy a car just like that. All that’s left for you to do is pay off the loan as you enjoy the benefits of being a car owner. 

You can buy the car you really want 

A new car loan lets you loosen up the purse strings. You can expand your budget a bit which expands your car options too. With new car finance, you aren’t limited to how much you have at the time of buying. You’ll be able to buy the dream car you've always wanted but couldn’t otherwise afford.  

Free up cashflow 

Getting a car loan means your money isn’t tied down to a single purchase. You won’t have to spend a huge lump sum to buy a car. This lets you allocate your funds better. This is great for business owners who don’t want to take a chunk out of their annual profits on a car. Or for those who are juggling different debts like a mortgage or credit card payments. 

Secured new car loans: Fixed rate vs Variable rate 

Secured new car loans are loans that use the vehicle you purchase as collateral. Because the loan is secured against the car, lenders feel more confident that borrowers will make their repayments. It’s why most secured loans have lower interest rates compared to unsecured ones. Typically, loans for new cars fall under secured loans due to their price range. 

A secured new car loan comes in two types: fixed interest rate and variable interest rate. See which one best suits your needs. 

Fixed rate new car loan 

When you take out a fixed rate new car loan, you pay the same interest amount for the lifetime of the loan. For the duration of your loan term, your interest is on a ‘fixed’ rate. It will not go up or down; you’ll know exactly how much to pay every time.  

This option is ideal for those who want accurate and regular repayment amounts. The consistency of the fixed rate loan is what makes it attractive to many borrowers. They find it easier to make financial decisions and plan for their budgets throughout the year. 

Variable rate new car loan 

Conversely, a variable rate new car loan means the interest rate you pay will change depending on market trends. With this type of loan, the amount of interest is subject to the rise and fall of outside factors. The good thing about a variable rate new car loan is that you could pay less interest on your loan. 

Some variable rate new car loans have features like extra repayments with a redraw facility. This lets you make additional payments so you can pay off your loan faster while saving on interest. This type of flexibility is ideal for borrowers whose financial situation changes consistently. 

New car loans: What are your options? 

Aside from choosing the type of interest rate, there are plenty of ways to adjust your new car loan to fit your current financial situation. Here are some factors you should consider that will help you find the perfect new car loan: 

Loan payment frequency 

When financing a car, you have more leeway when it comes to loan payment frequency. Instead of monthly repayments, you can opt for fortnightly or weekly payments. Paying more frequently will help you pay off your loan faster and could save you interest over the lifetime of your loan. Look at your finances and figure out which loan payment frequency meets your budget and financial goals. 

Loan terms 

Loan terms refer to how long you're going to be paying off the loan. Some lenders vary their loan terms depending on the type of loan. Variable loans may range from one to seven years while fixed rate loans range from one to five years. There are lenders who offer shorter or longer loan terms too.  

If you’re having trouble deciding on which loan term work best for you, use this handy loan repayment calculator. See how much your regular repayments will cost on different loan terms and repayment frequencies to figure out which suits your budget best. 

Deposit 

A deposit isn’t required to get a car loan. However, if you have some money saved up and want to borrow less, then go for it. Providing a deposit could help your loan application as it assures lenders that you have adequate savings. By borrowing less from lenders, you could also get lower interest rates which could save you a ton over the lifetime of the loan. 

Balloon payment 

You can add a balloon payment to your new car loan to lower your weekly, fortnightly or monthly repayments. By setting a balloon payment, you’ll have a lump sum payable at the end of the loan. The sum is normally equal to the residual value of the vehicle. 

This loan feature is completely optional. Discuss with your lender or financial adviser to see if adding a balloon payment is a good idea. 

Let Aussie Car Loans take the lead 

After a new set of wheels? Through services powered by carloans.com.au, let Aussie Car Loans take the hassle out of obtaining your car finance. We prioritise your needs and help you get the car you need as soon as possible. 

Aussie Car Loans can tailor a loan package ideal to your situation with competitive interest rates. We offer a fast and simple application for all types of vehicles. Save yourself the hassle of searching for the right car loan—contact us today! Call 1300 889 669 or get a quick quote online now. 

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