RateCity.com.au
powering smart financial decisions

TMD

Showing car loans for
$
over

Embed

Car loan lenders we compare at RateCity

Learn more about car loans

Jeep is an American automobile brand and icon. Jeep cars originated in the 1940s, and were arguably the first ever mass-produced SUVs. These lightweight four-wheel-drive vehicles became the primary military vehicles for the US and Allied armies in WWII and the postwar period.

Jeeps are robust cars designed for rough terrain and harsh conditions. They’re renowned for their functionality.

Jeep has been owned by Fiat Chrysler Automobiles since 1987, and its headquarters are located in Toledo, Ohio.

About Jeep cars

Jeep cars are exclusively SUVs and crossovers, including:

  • Grand Cherokee MY18 Laredo 4×2 – V6 Petrol ($47,950): eight-speed automatic transmission with 18-inch alloy wheels, Uconnect seven-inch touchscreen and ParkView reverse parking camera
  • Compass MY18 Sport 2.4L MT FWD ($30,950): manual drive with 17-inch alloy wheels, reverse parking camera, seven airbags, 5.0-inch touchscreen and six-speaker audio system
  • Wrangler Unlimited MY18 Freedom ($50,645): automatic drive with 18-inch granite crystal painted alloy wheels, body colour fender flares, rock rails and granite crystal-painted seven-slot jeep grille
  • Renegade MY17 Sport 1.4L 6A ($30,950): automatic drive with voice command and Bluetooth, 16-inch steel wheels, five-inch touchscreen and electric park brake
  • Cherokee MY18 Limited 3.2L Petrol ($47,095): automatic drive with 8.4-inch touchscreen, parallel and perpendicular park assist with stop, side distance warning, nine-speaker alpine sound system and subwoofer, and satellite navigation

Jeep review

Jeep Wrangler

Jeep is a brand built on functionality and dependability, although their modern cars aren’t as reliable as you might expect. In the Reliability Index, which measures car reliability based on multiple technical factors and user experience, Jeep was placed 28th out of 39 brands. The Jeep Cherokee, for example, scored 152 in the RI, 52 points below the industry average.

Jeep’s sales have been declining in Australia over recent years. They were recently subject to a high number of product recalls and suffered a hit to their reputation as a result.

They are, however, in the process of releasing new products to the market to rebuild their damaged name, so Jeep could be set to make a comeback in the Aussie market.

Jeeps are generally priced between $30,000 and $50,000, which classes them as ‘mid-range’ in terms of cost.

How can I get a Jeep car loan?

As with most car brands, Jeep car financing is available directly through your Jeep dealership. However, the rates and fees offered in-house may be higher than if you went to an independent car loan provider.

When looking for car finance, you have the option to:

Generally, Jeep car finance will consist of a secured car loan.  A secured car loan is a loan that is secured by your vehicle, meaning that if you default on your payments, your car might be seized and sold to repay the loan.

Unsecured loans for car finance are also available, but they tend to have higher rates and fees than secured loans, due to the greater risk posed to the lender.

Remember that loan rejections might negatively affect your credit score, so double check that you meet the application criteria before submitting a loan application.

How much does a Jeep car loan cost?

istock_79305201_small5

Here are the approximate running costs for three different Jeep models, based on RACQ category averages:

Model Category Cents/km Average $ per week
Cherokee Longtitude 4×4 3.2L V6 86.06 $248.25
Grand Cherokee Laredo 4×4 3.0L V6 99.11 $285.89
Grand Cherokee Laredo 4×4 3.6L V6 99.93 $288.27

Here’s how much a five-year loan will cost for three different Jeep models if you borrow 100 per cent of the purchase price over five years:

Model Price/loan Total repayments at 6% Total repayments at 8% Total repayments at 10%
Grand Cherokee MY18 Laredo 4×2 – V6 $47,950 $55,620 $58,335 $61,128
Compass MY18 Sport 2.4L MT FWD $30,950 $35,901 $37,653 $39,456
Wrangler Unlimited MY18 Freedom $50,645 $58,747 $61,614 $64,563

istock_79305201_small5

Frequently asked questions

How do you get a car loan?

There are four different ways you can get a car loan. You can go straight to a lender. You can get a finance broker to organise a car loan for you. You can get ‘dealer finance’ – which is when the car dealer organises a car loan for you. Or you can organise your own car loan through a comparison website, like RateCity.

Whichever method you choose, you will need to provide proof of identification, proof of income and proof of savings. So you may be asked for any combination of passport, driver’s licence, bank statements, payslips, tax returns and utility bills. You might also be asked to provide proof of insurance.

What is a car loan?

A car loan, also known as vehicle finance, is money that a consumer borrows with the express purpose of buying a vehicle, such as a car, motorbike, van, truck or campervan. Car loans can be used for both new and used vehicles.

What is a loan-to-value ratio?

The loan-to-value ratio, or LVR, is a percentage that expresses the amount of money owed on the car compared to the value of the car. For example, if you take out a $15,000 loan to buy a $20,000 car, you have a loan-to-value ratio of 75 per cent. Loan-to-value ratios change over time as you pay off your loan and your car depreciates in value. For example, two years later you might now owe $10,000 on your car, which might now be worth $15,000. In that case, although there would still be a $5,000 difference between the size of the outstanding loan and the value of the car, the loan-to-value ratio would now be 67 per cent.

What is a loan term?

The loan term is the amount of time the lender gives you to repay the car loan. For example, if you take out a $20,000 car loan with a five-year loan term, you would be expected to pay off the entire $20,000 (plus interest) within five years.

What is dealer finance?

Dealer finance is a car loan organised through a car dealer – as opposed to car loans organised by a finance broker or directly by the lender.

Should I service my own car?

There are also costs associated with vehicle ownership, such as paying for petrol and the obligatory ongoing maintenance. But should you cut down on costs by servicing your own vehicle?

If you’re considering getting out the tool box, spanner, and grease-laden towel, you need to carefully weigh up the risks and benefits. A trained mechanic will need to complete certain tasks, while you may be perfectly capable to handle other aspects yourself.

If you’re short on time, it may be worth paying for the convenience of a full vehicle service. However if you’re trying to slash your expenses, there are some basic maintenance tasks that you can complete yourself.

You should call a mechanic if you’re unsure about a vehicle maintenance task you’re about to take on. However there are a number of maintenance tasks that you may be able to complete with your own two hands including:

  • Replacing your car battery
  • Changing the oil
  • Replacing worn windscreen wipers
  • Replacing blown fuses

Remember to keep your car’s body in good condition, by washing and applying a protective wax on a regular basis, too.

Always check your car warranty agreement as some new car purchases come with an extended car warranty provided your services are conducted at the vehicle service centre where you purchased the car. In these circumstances, you may find the service fee is capped, alleviating some of the maintenance woes.

What is vehicle finance?

Vehicle finance, also known as a car loan, is money that a consumer borrows with the express purpose of buying a vehicle, such as a car, motorbike, van, truck or campervan. Vehicle finance can be used for both new and used vehicles.

What is a dealership?

A dealership is a car yard or a place where cars are sold.

Can you refinance a car loan with the same lender?

You may be looking to refinance your car loan to get lower interest rates or reduce the total monthly amount you have to pay. Often, this leads to the question ‘can I refinance a car loan with the same bank?’

While it’s always worth shopping around for a better deal or at least to compare offers from other lenders, you can sometimes refinance to a different loan with the same lender. It may be simpler,  as the lender already has your details and knows your repayment history. 

Having said that, knowing the terms offered by other lenders may help you negotiate a better deal with your current lender.

Can you get a chattel mortgage with bad credit?

Getting approval for a chattel mortgage with bad credit may be possible, given ‘chattel’ (usually a piece of equipment or car) is put up as security for the loan. That means if you fail to repay the loan, the creditor can recover the loaned amount by repossessing and selling the car or piece of equipment. This differs from unsecured car loans, where the asset is not tied to the loan and cannot be taken if you don’t meet the repayments. 

What is a secured car loan?

A secured car loan is a loan that is connected to a form of security, or collateral. Generally, the security for a car loan is the car itself. If you fail to repay the loan, the lender might seize your car, sell it and then use the proceeds to recover their debt.

Where can I get a student car loan?

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.

What is an unsecured car loan?

An unsecured car loan is a loan that is not connected to a form of security, or collateral. Not all lenders provide unsecured car loans – and if they do, they generally charge higher interest rates for their unsecured car loans than their secured car loans.

What is a guarantor car loan?

A guarantor car loan is a type of loan that features a guarantor on the agreement. The guarantor is a third-party individual, often a friend or relative, who guarantees the loan will be repaid if the borrower defaults on the car loan.

Guarantor car loans are often geared at people who might otherwise struggle being accepted for a secured car loan when purchasing a vehicle. Some of the reasons might include a lack of credit history such as with a student or young person, if there’s bad credit, or age as a factor such as with pensioners.

How to find a great car loan

Historically, finding a great car loan would require excess research ranging from visiting an excess of websites or making phone calls, but technology has moved on. Using RateCity, Australia’s leading financial comparison service, you can check out great deals from a range of lenders on the one site.

To start, select the amount you want to borrow and the length of the loan, narrowing your search to show just fixed or variable interest rate results.

Once you’ve indicated your search criteria, you’ll see an immediate list of lenders, ranked by interest rate or application fees. You’ll also be able to view the monthly repayment amount for each result, helping you to know what you can afford.

Up to six products can be compared side-by-side, complete with more information about each car loan, giving you more information about your options.

When comparing your car loan options, it’s ideal to keep in mind some points find a great car loan for your needs. Consider the following:

  • Choosing a low interest car loan can reduce costs
  • Selecting an option with low fees and charges is ideal, because these can really add up
  • Be aware of penalties, such as early exit penalties if you pay off the loan sooner than expected
  • Consider the features that best suit your situation

There are many ways to ensure that you get a great car loan. Ultimately, you’ll end up with the best deal by doing your research and selecting the most suitable product for you.

What is a guarantor on a car loan?

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.

Can I get a car loan with poor credit?

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.

Can I get a discounted student car loan?

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.

What is collateral?

Collateral, or security, is an asset you agree to surrender to a lender if you fail to repay a loan. Generally, the collateral for a car loan is the car itself. So if you fail to repay the loan, the lender might seize your car, sell it and then use the proceeds to recover their debt.

How to get pre-approval for your ANZ car loan?

Getting pre-approval on your car loan can give you a good idea of how much you may be allowed to borrow. This will help you set your limits while selecting your car. You can apply for pre-approval for an ANZ car loan by filling out a simple online application form, where you’ll have to submit relevant identity, employment and income documentation. 

ANZ will then conduct a credit check based on your application and documentation. It’s important to note that this could have an impact on your credit history. Based on your credit and income documentation analysis, ANZ will provide an amount they are willing to give you as a loan. After this, you can find the right car that matches the proposed loan amount and send it through your final loan application. 

It’s important to remember that pre-approval gives you an indication of how much you can borrow from ANZ to purchase your car, but it doesn’t guarantee the final approval.