If you’ve been dreaming of buying a car for a long time, you might have had to put these plans on the backburner due to COVID-19.
Australians are bracing for tough economic times ahead and are prioritising essential expenses when spending their hard-earned money.
Car buyers are noticeably concerned about the implications of taking on new debt in an economic slump, with road vehicle lending falling by 10 per cent in March, according to the Australian Bureau of Statistics.
But debt isn’t a concern for everyone. Almost 40 per cent of Australians have a manageable amount of debt or no debt, J.D. Power data indicates.
If you’re one of the lucky ones, and you’ve been in the market for a set of wheels for a while, RateCity has put together some of the top-rated car loans in three different categories for May 2020 to help you with your research.
Even if you haven’t been significantly affected by the downturn, keep in mind that a car loan can be a heavy financial commitment. It’s worth your time to compare interest rates, fees and features of multiple car loans before deciding which one is right for you.
(Rankings are correct at the time of publishing. Please note lenders may trade places on the list as interest rates and fees change and RateCity’s tracker reflects these movements.)
Top five rated new car loans
Usually, lenders have lower interest rates on secured car loans for new cars. This is because newer cars are worth more, generally easier to resell and more straight-forward to value than older cars. This reduces the risk for the lender, which means lenders are able to offer lower rates.
If you’re borrowing to buy a new vehicle up to two years old, here are the top five rated new car loans. The ratings below assume a secured $30,000 loan on a 60-month loan term.
Top five rated used car loans
If you’re a thrifty consumer, you might not need to have the newest car on the market. It’s widely known that new cars depreciate rapidly as soon as it hits the road. What’s more, new cars can lose as much as 30 per cent of its value in its first three years, according to NRMA.
For those borrowing to buy a used vehicle two years and older, here are the top five rated used car loans. The ratings assume a secured $20,000 loan on a 36-month loan term.
Top five rated green car loans
Cars with a sustainability element are shooting up in popularity. As a result, green car loans are popping up on the market. These car loans are specifically for those borrowing to buy a fuel-efficient vehicle or an electric car and may have lower interest rates than regular car loans.
Here are the top five rated green car loans. The ratings assume a secured $30,000 loan on a five-year loan term.
Where to find up-to-date car loan information
Almost nobody has time these days to check each lender’s individual website regularly. For those seeking up-to-date car loan information, RateCity has your back. Keep your finger on the pulse with RateCity’s Car Loans Leaderboards, where car loans are tracked and rated daily.