Car Loan (New and dealer used)
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Drive away with a new set of wheels, without forking out ongoing fees.
$5k to $100k
Drive away with a new set of wheels, without forking out ongoing fees.
Winner of Best New Car Loans, RateCity Gold Awards 2021
$5k to $63k
Tech-savvy car buyers can apply for this digital lender online, and pay no ongoing fees or early repayment fees.
$10k to $100k
Lock in a competitive interest rate and no ongoing fees with this secured car loan available for new and demo vehicles.
$10k to $100k
Secure this fixed rate car loan with a new or used vehicle, and enjoy flexible repayment options.
What car models are offered by Mercedes-Benz?
Mercedes-Benz is known for its range of premium luxury vehicles in all shapes and sizes. Luxury features in Mercedes-Benz vehicles provide drivers and passengers with comfort and style, as well as reliable driving performance and improved safety. Some models have added electric hybrid engines for greater efficiency and greener driving.
In addition to these luxury features, some of the newest Mercedes-Benz models also include smart features such as voice commands, for a more connected driving experience.
Prices for Mercedes-Benz vehicles tend to be on the higher side. The most affordable Mercedes-Benz models start in the mid-range of Australian car prices, while the premium models are priced for their exclusivity.
Vehicles in the Mercedes-Benz range include:
- A class, available in hatchback and sedan, from $48,866 – A high-tech vehicle with a smart multimedia system.
- B class hatchback from $52,536 – A tourer with a sporty design.
- C class, available in sedan, estate, coupe and cabriolet, from $70,998 – A dynamic series of vehicles.
- E class, available in sedan, coupe and cabriolet, from $104,495 – A powerful and stylish design.
- G class SUV from $272,597 – A powerful and exclusive off-road vehicle.
- S class, available in saloon, coupe and cabriolet, from $216,094 – The “special” class, with new developments in performance, intelligence and luxury.
- V class multi-purpose vehicle from $90,099 – A light van for luxury family travel.
- X class ute from $59,042 – A rugged all-purpose vehicle.
How can I get a Mercedes-Benz car loan?
With Mercedes-Benz prices tending to be on the higher side, a car loan may be necessary to drive away in luxury. As well as looking at Mercedes-Benz dealer finance including the brand's own Mercedes-Benz Financial Services (MBFS), there are a variety of different Mercedes-Benz finance options available, which you can quickly look at side by side with the help of a comparison table, like the one on this page.
Your car loan provider will work out how much you can borrow based on your ability to repay the loan. If you borrow more than the value of your Mercedes Benz, you can pay for insurance and other expenses, though you may pay more in total over the long term.
Choosing a secured car loan could mean a lower interest rate, though you may lose the car if you don’t keep up with the repayments. Choosing an unsecured car loan may offer more flexibility, though the interest rates may be higher.
In addition to the interest rate, it's important to also consider any fees charged and features offered on your preferred loan product.
What types of Mercedes-Benz car finance are available?
There are a number of different options on the market when it comes to Mercedes-Benz finance, each of which meet specific requirements. Here are some of the different ways you might consider financing your new car:
- Unsecured Car Loans: car finance where you don’t provide collateral
- Secured Car Loans: car finance where you do provide collateral, usually the car you are purchasing
- Chattel Mortgage: a specialist car finance option specifically for business finance use
- Operating Lease: more like a long-term car rental arrangement, involving a company leasing a car for an extended period
- Commercial Hire Purchase: closer to a rent-to-buy arrangement, generally involving a finance company buying a car on your behalf and letting you use it in return for regular rental payments. After a number of payments, you may own the car
- Car Finance Lease: similar to a commercial hire purchase, but with more options. You rent the vehicle for a set period and at the end of the lease, you either return the car or buy it
- Novated Lease: like a car lease, but with a more complicated ownership structure, as you acquire the car from a second party (usually an employer) which in turn leases it from a third party (a finance company)
- Balloon Payment Car Loans: refers to a one-off lump sum that you agree to pay your lender at the end of your car loan’s term. Because this payment can account for a significant chunk of your car loan’s balance (the exact percentage will depend on your lender, and the age and type of your vehicle), your remaining car loan repayments can be reduced as a result.
How much does a Mercedes-Benz car loan cost?
Once you have an idea of how much your new Mercedes might cost you, you can use RateCity's car loan calculator to get a repayment estimate, and determine whether it will fit comfortably within your budget. Our calculator can tell how how much your weekly, fortnightly or monthly repayments might be, depending on your preferred loan amount, interest rate, loan term and credit score. It can also calculate how much interest you may be charged over the life of the loan, as well as the total cost of the loan.
Before submitting a car loan application, consider checking the lending criteria and reading the product disclosure statement (PDS) of your preferred loan product including any disclaimers that may be listed.
You could also reach out to a car loan broker for personal advice and information specific to your financial situation.
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How to get the best car loan rate before you visit the dealership
As our desire for a new set of wheels grows, Aussies looking to drive away in a new or used vehicle may be wondering what they can do to nab a competitive car loan rate. Here are RateCity’s tips for improving your chances of getting your best car loan.
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A property and personal finance writer, Nick Bendel covered property, loans, credit cards, superannuation, and other bank products. Nick has previously written for The Adviser, Mortgage Business, Lifehacker, Business Insider, Yahoo Finance, and InvestorDaily, and loves getting elbow-deep in the latest ABS, APRA and RBA data.
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Frequently asked questions
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.
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.
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 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.
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.
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.
How to get a chattel mortgage?
Both businesses and individuals may use a chattel mortgage, provided that the car is being used predominantly for business purposes.
To apply for a chattel mortgage, you need to first consider your options and choose a suitable lender that meets your requirements. Once you have selected a lender, you can apply for the loan online by filling out a form. If the lender doesn’t offer an online application process, you can either call them or visit their nearest branch.
After you’ve applied, the lender will ask you to supply documents that confirm your identification, income, job profile, etc. If everything is in order, most lenders will arrange the loan’s settlement, so all you need to do is pick up your car!
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.
Can I buy a car as a student?
Buying a car is a huge financial decision, and shy of marriage and purchasing a house (or perhaps around the world travels), it may be the biggest financial decision you make. But if you’re looking at your empty pockets, don’t despair! Your dream of owning your own car could become a reality, if you look for and compare the right car loans for your circumstances.
What is a car lease?
A car lease, also known as an asset lease or finance lease, is an arrangement by which a finance company buys a car on your behalf. You get to borrow the car in return for making regular payments to the financier. At the end of the lease, you can either buy the car or hand it back.
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.
How much is your car worth?
If you already own a car, you could potentially bring down the cost by selling your car in the process. Before that happens, though, you’ll need to find out how much your car is worth.
One of the first places to find this value is to research the value of your current car, giving you an idea of roughly how much it’s worth in its peak condition.
There are plenty of websites that offer a free online valuation, allowing you to enter your car’s make, model, year, badge and description, with results listing a price guide based on both selling your car privately and through a dealership.
Of course, dealerships will try to profit on your trade-in by buying it for less than they can sell it, making it highly unlikely that you’ll get the same price selling a car to a dealer as you would selling a car privately.
However, private car sales can be costly and can take months to sell, making car trading more convenient with a guaranteed return, even if you may not be able to realise the total value of your car’s worth.
Remember that everything is negotiable. If the dealership is offering you less for your trade than you wanted, try to negotiate elsewhere to gain that money back. Start by negotiating on the price of the trade and then ask them if they can give you a further discount on your new car.
What are the pros and cons of guarantor car loans?
Like all things, there are positives and negatives to guarantor car loans, though one may outweigh the other depending on your needs.
Guarantor car loan pros may include that you’re more likely to be approved for a long if you have no credit or a history with bad credit, that you’re more likely to secure a car loan with a lower interest rate, and that because your guarantor car loan is based on a relationship, you will be more inclined to meet your repayment schedule.
However, there are negatives, as well. Guarantor car loan cons may include leaving a detrimental mark on a personal relationship with added strain if you don’t meet your repayments, and you may take out a loan that you can’t actually afford.
Weighing these pros and cons will give you a greater understanding of whether a guarantor loan is ideal for your circumstances.
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 much is my car worth?
If you own a car, it may be something that can help you bring down the cost of your next vehicle purchase through its sale. However, before you can do that you’ll want to find out how much your car is worth.
Your car’s worth can depend upon various aspects, including:
- Model and make
A great starting place for aspects of this includes websites that offer online valuations, allowing you to enter your car’s make, model, year, badge and description, with the listed results displaying a price guide based on both selling your car privately and through a dealership.
Both have pros and cons, as cars can be very profitable, something that will no doubt impact any chance you have to make the most of your car’s value upon sale. Dealerships will try to profit on your trade-in by buying it for less than they can sell it for, so you shouldn’t expect the same price selling a car to a dealer that you would necessarily get selling a car privately.
How to apply for pre-approval of a car loan from RACV?
If you’re planning to apply for a car loan with RACV, the best way to start is by having a clear picture of your requirements. By getting pre-approval on your car loan, you’ll be able to go shopping for your new car with a definite budget that will help you narrow your search. Once you’ve decided to buy a car with the help of a loan, you may have even identified the type of car you would like to purchase, you can seek pre-approval on a car loan from RACV.
You can apply for pre-approval by filling out a form online and uploading the relevant documentation regarding your identification, income, debt and credit history. Once you submit your application, RACV will review and verify the documents. If you meet their eligibility criteria, you will get pre-approval for the amount they are willing to lend to you. With this pre-approval, you can go car shopping with the confidence of knowing what you can afford.
What is a finance lease?
A finance lease, also known as an asset lease or car lease, is an arrangement by which a finance company buys a car on your behalf. You get to borrow the car in return for making regular payments to the financier. At the end of the lease, you can either buy the car or hand it back.