Car Loans in Australia

For most of buying a new car involves taking out a car loan of some sort. Read on for a guide to the different types of car loan available in Australia.

Fixed rate car loan
With a fixed rate car loan repayments are for the same fixed amount each month. Even if the market interest rates rise the rate on the loan will remain the same. These loans however tend to work out more expensive than variable loans. Another drawback is that if interest rates on the market fall then the loan will become even more expensive.

Variable rate car loan
Variable rate loans offer the lowest interest rates on the market. When the market rates are low you can pay off the loan quickly. However the interest rate is subject to market conditions and if rates go up then so will the repayment amount.

Dealer finance
This is a type of loan that is provided by the car dealership when you are buying the car. It is usually very convenient as the dealer will sort out all the paperwork for you. One of the drawbacks is that these loans are more expensive and there is often pressure to accept the terms being offered.

Online loans Many lenders are now providing loans online. They have both convenient and fast application processes with instant notification on whether your loan has been approved.