Thanks to the coronavirus pandemic, buying a new car may have been the last thing on the minds of many Australians. But with some social distancing restrictions starting to ease in selected areas, some Australians may be in the market for a car loan for their next vehicle purchase.
A lot of borrowers look for the lowest interest rates when comparing car loans. Interest rates can be important when your finances are tight, as the lower the rate on a car loan, the cheaper its repayments.
However, this isn’t always the whole story. Some car loans charge fees that can affect their overall value. Plus, depending on your financial situation, credit score, and the type of vehicle you’re purchasing, you may not be eligible for all of these low-interest car loans.
This is why it’s important to do your research and compare car loans before you apply, so you can be confident that the car loan you’ve chosen is not only affordable, but will suit your goals and financial needs.
Some of the low-interest car loans available on RateCity at the time of writing come from:
- Australian Military Bank – Offering variable interest rates from 3.60 per cent to 7.30 per cent (comparison rates 4.51 per cent to 8.76 per cent) depending on your credit score. What’s more, you don’t need to wear a uniform to apply for this car loan.
- Finance EZI – As well as offering a variable rate from 3.85 per cent (4.94 per cent), this car loan offers the chance to win a $250 fuel gift voucher.
- Stratton Finance – Offers a fixed rate of 3.85 per cent (comparison rate 5.43 per cent).
- Loans.com.au – This Green Car Loan can be used to buy hybrid, electric and other fuel-efficient vehicles, and has a fixed interest rate of 3.97 per cent (comparison rate 4.51 per cent).
- People’s Choice Credit Union – This discounted personal loan can be used to purchase new and used cars, and has a fixed interest rate of 4.65 per cent (comparison rate 4.99 per cent).
Remember that the car loan with the lowest interest rate won’t always be the best car loan for you. Always compare car loans while considering your own personal financial situation before you apply.
Compare more car loans at RateCity: