Written by Compare and apply for a 5 year car loan
Choosing the right term over which to repay your car loan is one of the most important factors that can shape your finance experience. That’s why so many Australians choose five-year terms: it strikes the perfect balance of keeping repayments affordable while not dragging them out for too long.
With all of the best offers on the market located in one place, you can’t go wrong with an application through Savvy. We’re partnered with over 25 lenders across the country to give you the most choice for selecting your loan and more options to compare for the lowest rates and best features. Get started with your application now and drive away in no time.
The features and benefits of a 5-year car loan
Why you should choose your car loan with Savvy
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Your loan consultant will be with you every step of the way to make sure you walk away with the best possible deal.
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WHAT OUR CUSTOMERS SAY ABOUT THEIR FINANCE EXPERIENCE
WHAT OUR CUSTOMERS SAY ABOUT THEIR FINANCE EXPERIENCE
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Your frequently asked questions about car loans
How old can my chosen car be?
Savvy works with loan providers who consider applications for cars anything up to 25 years old at the conclusion of your loan. For a 5-year car loan, this would mean the maximum age at purchase would be 20 years old. However, you can exceed this age limit by opting for either an unsecured car loan or classic car loan if your car is a vintage model.
What are my 5-year car loan options if I’m buying for my business?
If you want to buy a car for business purposes, you can take out a chattel mortgage or hire purchase agreement and repay those over five-year terms. Alternatively, car leases usually stretch up to a maximum of five years, so you can also choose this option if you don’t want to commit to the purchase of your business vehicle.
Should I seek pre-approval for car financing?
Pre-approval can be highly beneficial for you when it comes to purchasing your car. Firstly, it gives you a concrete figure to work within when researching cars to buy. What it also does is provide you with a strong hand at the negotiating table, as sellers will know that you can’t afford to buy a vehicle above your pre-approval price. This can save you money overall.
Will I be able to get a five-year loan term if I have bad credit?
Yes – we work with specialist lenders who work with bad credit customers and enable them to take out financing for their car. These come with further restrictions based around the amount they can borrow and are charged higher interest rates and fees due to their increased risk. However, they can be approved for a loan term up to five years in the right circumstances (such as evidence of improved rating and stable, consistent income).
How quickly will my car loan be approved?
If your application runs smoothly and there aren’t any major bumps in the road (such as not having the required documents), you can have your car loan application approved in as little as 48 hours. This means that from the moment you submit your quick quote, you could be driving your car in just two days.
Some of the things that you can do to speed up the process include submitting all of your correct documents promptly and applying earlier in the day or week.
What is a comparison rate and why is it important?
The comparison rate on your car loan is a figure that incorporates both your interest rate and primary fees, such as your establishment and ongoing monthly costs. The comparison rate is designed to provide you with a more accurate indication of what your loan is likely to cost, not including conditional fees like early and late payment charges. As such, it’s arguably more important to look to this rate than the interest rate on its own, as it doesn’t tell the full story.
