Demand for cars up, with medium SUVs leading the way
The Australian love affair with SUVs continues, with new car buying intention statistics showing medium sized SUVs are the car of choice around the nation according to Roy Morgan Research.
Upwards of 850,000 Australians intend to buy an SUV in the next four years, a figure that has risen 20 per cent in the last year alone. The most popular vehicles noted by intended buyers included the Mazda CX-5, Toyota RAV4 and the Hyundai Tucson.
But while medium sized SUVs are certainly having their moment, the car market as a whole is set to experience a lift with 2,331,000 Australians now intending to buy a new vehicle in the next four years. This includes 634,000 buyers who are looking to buy within the next 12 months.
Both these short- and medium-term intentions are on an upward trend, fully reversing a decline over the second half of 2015.
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“Car buying intentions have continued to improve with 11.8% per cent of the population (14+) intending to buy a new car in the next four years (equating to 2.33 million people),” said Jordan Pakes, Industry Director – Automotive, Roy Morgan Research.
If you are among the many Australians who are looking to buy in the near future, you may be wondering how you can finance your purchase. If you have your heart set on the car of your dreams, finding a car loan that will make you just as happy could be a little harder.
Here are five tips to put you on the right track to finding a good deal on your car loan:
Check your credit history: Arm yourself for your search by knowing how a possible lender views you. Use a free credit check service to see what your credit rating is and, if it’s great, use this as a bargaining chip.
Compare interest rates: Start to understand the market by comparing the interest rates available. This way you will be able to differentiate between a lender that is offering a loan at a reasonable rate and one that is unnecessarily high.
Compare fees: Don’t only look at interest rates, compare the fees that each loan charges as well. Is there a fee for making extra repayments? Or ending the loan early? Read the product disclosure statement so you have all the info before signing up.
Apply for your top pick: Once you have narrowed down your search to a couple of good loans, apply for your top pick only. Applying for multiple loans, and possibly being knocked back from some, can negatively affect your credit rating. Apply for the best loan for your needs and wait to hear back before applying for more.
Secure your loan: Car loans can be unsecured or secured against the value of your car. Secured loans are generally cheaper as the lender will be able to recoup your vehicle if you default on the loan. This may be a good way to reduce car loan costs if you are confident you will be making your repayments regularly.
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Disclaimer
This article is over two years old, last updated on August 30, 2016. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent car loans articles.
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