RateCity.com.au
  1. Home
  2. Car Loans
  3. Articles
  4. Find out how to finance a car today

Find out how to finance a car today

RateCity avatar
RateCity
- 2 min read
Find out how to finance a car today

There's plenty to consider when shopping for a car loan that's right for you. Take the guesswork out of it by learning more about how car financing works.

Getting on the road needn't be a complex exercise, particularly if you have your eyes on a car. Finding the right one to jump into is part of the journey, but that's often the easy part. Working out how you'll be handling car finance is often trickier, because there are so many rates and so many choices.

Fortunately, there are some tips that might help you nail your car loan and secure that car faster. 

1. Keep your loan term as short as possible

Choosing a shorter loan term means paying more each month, but you’ll pay off your car faster. The sooner you can repay a loan, the less interest you’ll pay. Just make sure it works with your budget.

2. Be aware of your credit score and report

Consider checking your credit score before applying for car finance. Once you know and understand your credit score, you’ll have a better idea of the interest rates you may qualify for. 

3. Look for lenders charging minimal fees 

Expect most car loans to have one or two fees as standard. But it’s still important to ask the lender about all of the fees associated with a loan you may be interested in.

4. Consider loans with flexible features 

Car loans can differ considerably in terms of what they offer. Some more popular features include free extra repayments, redraw facilities and repayment schedule options. 

5. Pay attention to the comparison rate 

It’s important to opt for a car loan with a competitive interest rate. But remember, only the comparison rate incorporates fees and charges, unlike the advertised rate.

6. Compare car loans from multiple lenders

It pays to compare. By shopping around, you can potentially save hundreds if not thousands of dollars over the life of your loan. To discover some of Australia’s most competitive car loans, keep scrolling.

Disclaimer

This article is over two years old, last updated on April 14, 2021. 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.

As soon on

news
australian_financial_review
10_news
7_news
daily_telegraph
sunrise
abc
today
9_news
sydney_morning_herald
Thumb-The_australian_logo

Compare car loans in Australia

Product database updated 28 Mar, 2024

This article was reviewed by Personal Finance Editor Georgia Brown before it was published as part of RateCity's Fact Check process.