Car Loans Sydney
Finance your vehicle in NSW the right way by applying for a car loan through Savvy.
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Whether you're in Sydney, Wollongong or Byron Bay, if you’re looking for a car loan in New South Wales, Savvy’s got you covered. With our extensive lender panel and experienced loan consultants, we can find the best car loans for your needs, and out 100% online application process means you can apply wherever you are. Get started with a quick quote from Savvy today!
How do I qualify for a car loan in Sydney?
To qualify for a car loan in Sydney or anywhere else in Australia, you will need to meet certain criteria set by lenders. These are some of the key requirements:
- Age: you must be at least 18 years old to apply for a car loan.
- Residency: you must be an Australian citizen or permanent resident – though in some cases, a temporary visa may also be considered).
- Income and employment: you must have the financial means to repay the loan. Depending on the lender, this may include employment income, self-employment income, government benefits or other sources of regular income.
- Credit score: most lenders will have minimum credit score requirements that you need to meet.
- Car: the car itself will generally need to be under a certain age and in good condition.
Such conditions are in place to protect both lender and borrower – the lender against risk of losing money and the borrower against taking out a car loan they will struggle to or be unable to pay back. However, note that exact requirements vary from lender to lender, so you may be eligible for a loan even if you have a bad credit rating or lower income. If you’re unsure about whether you qualify or what type of loan you could get, Savvy can search offers from dozens of lenders to help you find a deal that suits your circumstances and needs.
What are the costs involved in financing a car in Sydney?
The average car loan in Sydney costs $211.28 per week according to the Australian Automobile Association’s Transport Affordability Index report for Q1 2024. However, how much your loan will cost depends on a number of factors. These include:
Car value: more expensive cars will result in larger loan amounts and subsequently higher repayments.
Interest rate: rates vary depending on factors such as your credit score and loan term. A higher interest rate can increase the total cost of the loan significantly.
Loan term: longer loan terms typically result in lower monthly payments but may cost more in interest over the life of the loan.
Down payment: this can reduce the amount you need to borrow and lower your ongoing repayments.
Fees: various fees may be associated with financing a car in Sydney, including application fees and early repayment fees.
On top of your loan, it’s important to budget for the other costs involved in owning a car. For drivers in NSW, these include:
- Stamp duty: this is calculated based on the vehicle’s value, calculated at $3 per $100, then for vehicles over $45,000 at a rate of $1,350 plus $5 per $100 of the vehicle's value over $45,000.
- Registration: there is an annual registration fee of $70, then additional fees based on the weight of your car. Find out more here.
- Green Slip: this is NSW’s version of Compulsory Third Party (CTP) insurance and prices can vary between providers. Find out more here.
- Fuel: the average Sydney household spends $100.83 on fuel each week, according to the AAA.
- Car insurance: if you have taken out a car loan, you will likely be required to take out comprehensive car insurance.
- Tolls: there are several toll roads in NSW, particularly Sydney, that drivers must pay to use. Find out more here.
- Maintenance and repairs: such as regular servicing, oil changes and unexpected repairs.
How do I choose the best car loan in Sydney?
When looking for a car loan in Sydney or anywhere else in NSW, it’s important to weigh up your options rather than settle for the first deal you find. If you can, take time to shop around and compare offers based on factors such as:
- Interest rate: look for the most competitive rates available.
- Fees and charges: assess the fees and charges associated with each loan, as these additional costs can impact the overall affordability of the loan.
- Comparison rate: the comparison rate includes both the interest rate and any associated fees and provides a more accurate representation of the total cost of the loan.
- Loan term: the length of the term can significantly impact the total cost of your car loan once interest is considered.
The examples below for a $30,000 vehicle can help give you a better understanding of how these elements can affect the cost of your loan:
| Scenario #1: low interest | Scenario #2: high interest | Scenario #3: shorter loan term | Scenario #4: longer loan term | |
|---|---|---|---|---|
|
Interest rate |
5% |
12% |
7% |
7% |
|
Comparison rate |
5.5% |
13.5% |
7.5% |
7.5% |
|
Loan term |
4 years |
4 years |
2 years |
7 years |
|
Monthly payment |
$697.69 |
$812.29 |
$1,349.99 |
$460.15 |
|
Total interest & fees paid |
$3,489.32 |
$8,989.91 |
$2,399.71 |
$8,652.46 |
Ultimately, the best loan is one that suits your income, expenses and circumstances. Before applying for a loan, determine your budget, including how much you can afford for monthly repayments and any upfront costs such as a deposit or fees, to ensure you don't overstretch yourself. You can also seek advice from experts like Savvy, who can walk you through the process.
Why Sydney residents trust Savvy to help them find the best car loans
Expert loan consultants
Our friendly and diligent loan consultants will help you through the process, from finding the best loans to ensuring your application hits the mark.
Over 40 lending partners
With a wide range of lenders counted amongst our panel, we give our customers the best chance of finding their perfect loan deal by adding competition.
Smart technology
Our smart online technology takes the guesswork out of comparing loans by automatically matching you to the best options available for your situation.
Our range of vehicle finance options
Calculate car loan repayments
Disclaimer: The results provided is an estimate only. Please read our Calculator Assumptions and Disclaimer for more information
The documents you’ll need when applying for car finance
Photo ID
Identification is required first and foremost to prove that you’re who you say you are. This is likely to come in the form of your driver’s licence and/or passport.
Other forms of ID may be required as part of this step, such as your Medicare card. Ensure that you scan your driver’s licence front and back before sending it through via our online portal.
Payslips
As a means of determining what you’re earning and whether it’s regular and stable, you’ll be required to submit your two most recent payslips. Depending on the lender you go with and the nature of your employment, you may also have to provide the last 90 days’ worth of bank statements.
How long you’ve been in your job can also factor into the success of your application, so you may need to supply a copy of your employment contract if you’re new or working in a non-permanent role.
Credit report
While you don’t have to supply this yourself, your consultant will assess your credit file as part of your application process. This is done to determine factors such as your credit score, past and existing borrowing, current liabilities and residential history.
Lenders consider this a significant part of your application, so we’ll need to review it to determine what the loan with the best chance of success is for you.
Application form
You’ll be required to send through a completed application form in addition to these, which you’ll receive from your Savvy consultant. We’ll make sure that each point of the document is pored over before submission to avoid any mistakes and increase your approval chances.
Signed consent form and credit guide
Additionally, we’ll need to receive a signed consent form and credit guide from you, confirming that you agree to the loan terms and our service as a broker in connecting you to your lender. Once you have these, and the remainder of your necessary documents, your consultant can submit your application.
What our customers say about their finance experience
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Common car finance queries from Sydney borrowers
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