Looking for the right car loan?
Whether you’re buying your first car, upgrading your family vehicle, refinancing your current deal or adding one to your business, Savvy is here to help. We’re partnered with over 40 lenders and have secured more than 10,000 car loans for our customers nationwide since we opened our doors in 2010.
It’s simple: applying for a car loan has never been easier than it is with Savvy. With our experienced team of brokers based right here in Australia, we’re with you from start to finish to handle the heavy lifting throughout your application and ensure you drive away happy with minimal fuss.
What are car loans and how do they work?
A car loan is a credit product designed to help borrowers purchase a vehicle. A lender, after conducting responsible lending checks, will approve an applicant for a loan if they meet their eligibility criteria. This loan is then transferred directly to their dealer or seller. In return for this up-front advancement, the borrower must pay back their lender with interest and fees.
The amount you borrow is tied to your borrowing power, as well as the cost of purchasing your car. The loan must be manageable for you to repay on a weekly, fortnightly or monthly basis. You can also decide the term over which you repay your loan, which can range from one to seven years in length.
Additionally, the interest rate you’re offered on your loan will be dependent on several different personal variables, such as:
- Your job and income stability
- Your credit score and history
- Your savings
- Your assets and liabilities
- The type of car you purchase and its condition
- The Reserve Bank of Australia's cash rate
Car loans typically come with fixed interest rates, making them better for budgeting into the future as you’re protected against rate rises across your term. However, some lenders may allow you to choose variable rates.
Compare car loan lenders
Compare car loans in Australia from various lenders, with interest rates that vary depending on the borrower's credit score and other factors.
| Lender | Interest rates from: | Comparison rates from: | Loan amount (AUD) |
|---|---|---|---|
| Angle Auto | 5.50% p.a. | 6.56% p.a. | $5,000 – $150,000 |
| Plenti | 7.19% p.a. | 7.82% p.a. | $10,000 – $100,000 |
| Now Finance | 6.45% p.a. | 6.45% p.a. | $5,000 – $100,000 |
| Liberty | 5.90% p.a. | 6.33% p.a. | $5,000 – $100,000 |
| Money Place | 5.90% p.a. | 6.33% p.a. | $5,000 – $80,000 |
| Firstmac | 6.09% p.a. | 7.22% p.a. | $5,000 – $150,000 |
| MoneyMe | 5.99% p.a. | 6.70% p.a. | $5,000 – $50,000 |
Car Loan Lenders We Work With
The pros and cons of a car loan
Pros
-
Immediate car ownership
As long as you're approved, a car loan can get you into a brand new car in as little as a few days. So, whether it's the need for an upgrade or your first car, you can make it happen sooner.
-
Keep your savings intact
Pending the model, a brand new car can be expensive and eat into a significant proportion if not all of your savings. Financing a car can allow you to pay a percentage or none of the vehicle's sales price to buy it.
-
Flexible loan options
You can take out a car loan up to seven years in length. You also get to pick the repayment frequency. This allows you to calculate your repayments and ensure they fit your budget.
-
Peace of mind
A new vehicle is both more reliable than an old car and usually safer. While you do have your loan repayments, it could ensure you avoid an unexpected maintenance bill for an old car.
-
Improve your credit score
As long as you make your repayments on time, you should be able to improve your credit score, which will improve your chances of getting low rate finance in the future.
Cons
-
Interest repayments
Unfortunately, all loans attract interest. While it does make the upfront cost of the car far cheaper, you will repay more than the lifetime value of the car in the long run.
-
Affects your borrowing capacity
If your financial plans in the immediate future include taking out another loan while you still have vehicle finance, your borrowing capacity will be reduced due to the loan-to-value ratio.
-
Vehicle eligibility
While a new car is nearly always eligible for a loan, used cars are judged differently. The lender will consider the type of vehicle and its age in order for it to qualify for a low rate secured car loan.
Why apply for a car loan with Savvy?
What our customers say about their finance experience
