Car Loans Perth
Find affordable car loans in Perth and the rest of Western Australia through Savvy.
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Perfectly placed for both ocean and outback, Perth is a city that offers it all. But whether you’re shuttling kids around the suburbs or looking for rural adventures, life in the City of Light isn’t complete without a set of wheels. If you’re looking for a car loan in Perth or anywhere else in WA, you can explore your options through Savvy. We are partnered with dozens of lenders across Australia and our friendly consultants are on hand to help you every step of the way. Get started with a free quote today!
How do I get a car loan in Perth?
Getting a car loan in Perth is a straightforward process with Savvy. Here’s what you need to do:
- Submit your enquiry online: use our simple online form to provide details about yourself and the loan you’re after, including how much you want to borrow, term length, residency and employment status, and credit history. This should only take you a few minutes.
- Chat with our team: one of our expert car loan brokers will be in touch to discuss your needs in more details, determine whether you qualify and provide information about next steps to take.
- Provide your documents: if you’re eligible for a loan, you’ll need to provide documentation such as ID, proof of address, payslips or bank statements, depending on your circumstances. These can all be submitted online.
- Let us find your loan: your Savvy consultant will assess your submission to determine what you can get, working with our panel of lenders to find the best deal available for your situation.
- Application submission and approval: if you’re happy with the terms of the loan, your application will be submitted to the lender for approval. You can be approved within 24 hours of submission. Once the documents are signed, we’ll arrange settlement with the seller for your new car. When that's done, you're all set to hit the streets of Perth!
How much will my car loan cost in Perth?
According to the Australian Automobile Association’s Transport Affordability Index report for Q1 2024, Perth residents pay an average of $212.88 a week on their car loans. Prices are similar for other areas of Western Australia, with drivers in Bunbury paying the same amount on average.
However, the actual cost of your loan will depend on a number of factors, including:
- Car value: the total amount you borrow will typically depend on the price of the car you want to buy.
- Interest rate: a lower interest rate means lower total interest payments over the course of the loan, reducing the overall cost.
- Loan term: a longer loan term may result in lower monthly payments – but could lead to higher interest costs overall.
- Deposit: a larger deposit reduces the amount you need to borrow, resulting in lower monthly payments and potentially lower overall costs.
- Fees: you may be subject to various fees that can add to the total cost of the loan.
Here’s an example showing how different interest rates for the same $25,000 car over a five-year term can affect monthly and final costs:
| Interest rate | Monthly repayment | Total interest paid | Total amount to pay |
|---|---|---|---|
|
5% |
$471.78 |
$3,306.85 |
$28,306.85 |
|
6% |
$483.32 |
$3,999.20 |
$28,999.20 |
|
7% |
$495.03 |
$4,701.80 |
$29,701.80 |
|
8% |
$506.91 |
$5,414.59 |
$30,414.59 |
What other costs should I consider when buying a car in Perth?
When budgeting for a car, it’s crucial to look beyond the loan and consider all costs involved in owning and running it. These are some of the other costs you will need to cover when you buy a car in Western Australia:
Vehicle licence duty: otherwise known as stamp duty, this is the fee paid when a car’s registration (licence) is transferred to another person. How much you pay is based on the value of the vehicle. In WA, you can use RevenueWA’s vehicle duty calculator to calculate how much you need to pay when buying a car.
Vehicle licence and Motor Injury Insurance (MII): car registration fees in Western Australia can be broken down into three parts:
- Licence fee: unlike other states and territories, WA uses the car’s weight in its vehicle licence (registration) fee calculations. As of May 2024, this is set at $26.52 per 100kg for motor cars.
- Motor Injury Insurance: MII is made up of two insurance products, Compulsory Third Party (CTP) and Catastrophic Injuries Support (CIS), and covers the driver for injuries they cause to others in a crash.
- Recording fee: this is a flat fee to cover administration costs, set at $10.30 as of May 2024.
Fuel: fuel is one of the biggest costs for car owners, making up 22% of weekly transport costs on average, according to the AAA. If you are in Perth, you can find up to date fuel price information here.
Car insurance: car insurance provides financial protection if your car is damaged or stolen. If you take out a car loan, you may be required to have comprehensive car insurance, the highest – and most expensive – level of cover.
Maintenance and repairs: regular maintenance is crucial to keep your car running smoothly and prevent expensive repairs down the road. Factor in the cost of routine servicing and consider a buffer for unexpected repairs that can arise over time.
Types of car finance available in Perth
Why choose Savvy for your car loan?
Australia's top lenders
Savvy partners with some of the best lenders in the country, giving you access to a range of car finance deals.
Solutions for everyone
Whether you're a business owner, private buyer or even if you have bad credit, we can investigate car loan solutions for you.
Hassle-free application
Fill out a form, discuss your needs and apply quickly and easily through our online platform.
What our customers say about their finance experience
Savvy is rated 4.9 for customer satisfaction by 3947 customers.
Calculate car loan repayments
Disclaimer: The results provided is an estimate only. Please read our Calculator Assumptions and Disclaimer for more information
A checklist for before you apply for a car loan in Perth
Be aware of your credit history
First and foremost, it’s important that you understand what your credit file looks like and what’s in it. This provides your lender with an indication of how you’ve fared with past borrowing arrangements, as well as provide information on your existing liabilities and current credit limits.
Fortunately, your Savvy consultant will review this for you in the initial application process to determine the type of car loan you can qualify for. They’ll also do this to highlight any potential errors in your file that’ll require correcting.
Check the eligibility criteria
You should only apply for a car loan if you know that you meet the eligibility criteria. The following points apply across the board with car loans.
- Must be 18 years of age or older.
- Must be an Australian citizen, permanent resident or living here on an acceptable visa.
- Must be earning a stable, consistent income – typically at least $26,000 annually – to support minimum loan payments.
Know your borrowing limits
Lenders can very quickly and easily tell whether you’re capable of repaying the loan you’re asking for based on your income and expenses.
As a general rule, your loan repayments shouldn’t exceed a quarter of your total monthly income. For example, an applicant earning $30,000 annually would have a monthly income of $2,500, meaning they could feasibly be approved for a car loan which held repayments of approximately $600. This is, of course, dependent on other monthly expenses.
Analyse your comparison rate
While interest rates are one of the most important aspects in determining car loan cost, you should always be aware of the types of fees that you’ll be required to pay on top of these. These additional costs will vary between lenders, but establishment fees can cost up to $600 and ongoing fees can set you back up to $20 per month.
Keep in mind that there are costs that aren’t included in your loan’s comparison rate, such as late payment fees.
Prepare all of your documents
Finally, you should ensure that you have all of the right documents at hand ready to send through to us for your formal application. These will be as follows:
- Photo ID such as your driver’s licence or passport
- Your last two payslips
- Additionally, some lenders may require 90 days’ worth of bank statements
- Any statements relating to income derived from Centrelink
- A completed Savvy application form
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