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Car Loan (New)
$5k to $100k
$10k to $150k
$5k to $50k
Discounted Personal Loan (Car Loan)
$20k to $100k
Low Rate Car Loan Special Offer
$25k to $125k
Used Vehicle Fast Loan Low Rate
$2k to $250k
Used Car Loan Dealership (Home Owner)
$10k to $250k
$5k to $40k
New Car Loan (Non-Home Owner)
$10k to $250k
New Car Loan
$2k to $75k
Personal Loan Fixed
$5k to $50k
$5k to $50k
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A step-by-step guide to getting a car loan
By following the right steps, you'll be able to buy your dream ride with little hassle.
Car loans in Hobart
While Tasmania may not be quite as big as mainland Australia, it can be a bit of a devil to get around if you want to get off the beaten track. That’s why many Hobartians have a car, as it means not only can they get around the city for both work and leisure, but also head into the countryside or to the coast at the weekend and for holidays.
A new car can make doing that a lot easier and more comfortable for you and your family, and car loans in Hobart can make buying the car of your dreams a reality.
How do car loans in Hobart work?
Borrowing money always has a cost, and buying a car may be largest purchase you ever make apart from buying a home. Car loans are a type of personal loan, and therefore they have similar features to regular personal loans.
Loans in Australia are carefully regulated by two financial bodies, the Australian Prudential Regulatory Authority (APRA) and the Australian Securities and Investments Commission (ASIC), so you can be confident that charges won’t be excessive and that you’ll be protected if anything should go wrong with the institution lending to you.
If your loan application is accepted, you will enter into a binding agreement to repay not only the principal loan for your car but the interest accrued over the loan term.
Why do people use car loans in Hobart?
Cars are costly, so negotiate with car dealers with your eyes wide open. You may not have sufficient funds in terms of the value of your current car and/or savings you intend to put towards your new car, but try to negotiate a deal that suits your circumstances.
If you want to push the boat out then go for it, if you feel you can afford it; remember that most car dealers would rather strike a deal than have you walk away. So, take the time to look at what prices the car you want is available for from different dealers and see if there are any special offers you can take advantage of that could reduce the amount of money you need to borrow.
What are the main features?
Car loans may be secured or unsecured. If unsecured, your chosen lender will want to be sure you can repay the loan, so good credit history will be needed here. A secured loan may ask for the car as security, so if you fail to make your repayments on time you could lose the vehicle and any money you have already repaid.
Interest rates will vary depending on the amount of money you borrow and the term of the loan, so always compare lenders and what the rates they offer for what are otherwise very similar products.
What are the pros and cons of car loans in Hobart?
A car loan can be the difference between getting the car you want and having to compromise. If you keep up your repayments you will own your new car outright before you know it, but make sure you check to see if there are any hidden charges for paying back your loan quicker than originally scheduled.
Mark Bristow is a senior financial writer for RateCity and an experienced analyst, researcher, and producer. Working for over ten years, Mark previously wrote and researched commercial real estate at CoreLogic, and has seen articles published at Lifehacker and Business Insider, among others. Most recently, Mark has joined RateCity working across finance as a whole. Whatever the topic, Mark’s goal is always to provide simple solutions to complex problems.
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Yes, you can get a car loan with bad credit, although you’ll probably find the process trickier and dearer than that experienced by people who have good credit histories.
You can find a number of lenders that specialise in bad credit car loans. However, make sure you compare bad credit car loans before you sign on the dotted line, because not all car loans are alike and having bad credit may mean you are more likely to be hit with higher fees and interest rates.
If you have bad credit, it’s important not to take out a car loan unless you can afford the repayments because a default could further damage your credit rating. Conversely, if you make all the repayments and repay the loan successfully, your credit rating might improve.
Being a student is tough enough, and while you might find the odd student discount on movies and technology, the same can’t be said about car loans, as you can’t really get a discounted student car loan.
Lenders make money on the interest and fees that they charge with loans, and the lowest interest and fees are given to the most reliable credit holders: people with excellent credit history.
As a student, you are unlikely to have enough on your credit report to warrant an excellent history. There are however, ways of getting a lower interest car loan if you can’t get an interest-free loan from the bank of mum and dad. One way of doing this may be through getting a guarantor car loan, which can get you a secured car loan by setting your parents up as guarantors.
Lenders that provide bad credit car loans tend to be smaller challenger lenders rather than the bigger banks.
Bad credit car loans are a niche product. The bigger banks tend to focus on mainstream car loan finance for borrowers with better credit histories. That’s why smaller lenders tend to be the ones that provide bad credit car loans.
Bad credit car loans can have high interest rates and fees, so it’s important to compare options before submitting an application.
Student car loans are not a necessarily a product in and of themselves, but what you may be looking for is a guarantor car loan.
A guarantor car loan has a third-party act as a form of guarantee for your loan application, telling the bank or lender that if you default on your loan, someone will pay the loan repayments.
Going guarantor on a car loan is no new thing, and before internet-based credit scores, guarantor car loan applicants would apply for loans with a guarantor or property owner who could vouch for the person borrowing the loan.
To get a guarantor car loan, you’ll need someone willing to act as a guarantor for your car loan.
A bad credit car loan is a car loan for borrowers who have ‘bad credit’ or a bad credit history.
Some lenders refuse to offer bad credit car loans, because they believe there is an excessive risk that bad credit borrowers will not repay their loans. However, other lenders are willing to provide bad credit car loans.
Generally, these lenders charge higher interest rates for bad credit car loans than ‘prime’ car loans, reflecting the higher level of risk. Bad credit car loans may also have higher fees than prime car loans.
However, the big advantage of a bad credit car loan is that it allows borrowers with bad credit to access finance. Another advantage is that it could help bad credit borrowers improve their credit rating, assuming they make all their repayments on time.
Poor credit doesn’t necessarily mean you won’t be able to get finance for your car purchase, though your options aren’t likely to be the same as someone with good credit.
In fact, a number of specialist lenders exist offering car finance for customers with poor credit, able to provide access to bad credit car loans.
However having a history of poor credit will likely mark you as a potential risk to lenders, so your car financing needs could see higher fees and interest rates. Alternatively, consider a secured car loan, which is a type of loan that uses the car you purchase as collateral, reducing the risk.
Other options include getting someone close to act as a guarantor for your car loan, or to talk to a broker about a personalised rate specific to your circumstances.
A guarantor on a car loan is a third party, usually a relative or friend, who guarantees to meet the repayments of a loan for the purchase of a car, if the borrower/owner of the car defaults on the loan.
Guarantor car loans can be useful for people who would otherwise struggle in being accepted for credit to purchase a vehicle. These may include people with bad credit, students and young people who may have no credit history, as well as some pensioners.
Many lenders offer guarantor car loans, guarantor personal loans and guarantor home loans, because of the significantly reduced risk to the lender.
You may be able to get a no credit check car loan in certain circumstances, although it’s important to weigh up your options before doing so.
Most lenders refuse to provide no credit check car loans, because they don’t want to give loans to borrowers without first confirming that they have a track record of repaying debts. So any lenders that do provide no credit check car loans would take measures to protect themselves against the risk of default.
That’s why no credit check car loans have higher interest rates than other car loans. Also, borrowers often have to provide security and put down a larger deposit.