Following the Reserve Bank’s cash rate cut last week, online lender loans.com.au has lowered car loan interest rates by 45 basis points, taking one of its car loans down to its lowest ever rate.
The veteran fintech’s Green Car Loan now offers a fixed rate of only 4.29% (4.83% comparison rate*) while its New or Used Car Loan now has a fixed rate of 4.99% (5.54% comparison rate*).
|Product||Advertised rate||Comparison rate|
|Green Car Loan||4.29%||4.83%||More details|
|New or Used Car Loan||4.99%||5.54%||More details|
|Ad rate||Comp rate*|
|Green Car Loan|
|New or Used Car Loan|
*Note: for used cars, the loan is only available for cars up to four years old.
This new Green Car Loan rate of 4.29% is now one of the lowest car loan interest rates on the market right now and is loans.com.au’s lowest ever car loan rate.
loans.com.au Managing Director Marie Mortimer said these new rates would help car buyers get a good deal with the End of Financial Year vehicle sales approaching.
“This is the best time of the year to grab a bargain on a new car and we have decided to make it even more inviting with a record-low interest rate,” Ms Mortimer said.
“With amazing rates like this available, it is even more important for buyers to arrange a competitively priced loan before they visit the dealership, instead of accepting whatever finance the dealer offers them.”
Only certain ‘low emissions’ vehicles can qualify for the Green Car Loan, which is a 70 basis point discount on its 4.99% New or Used Car Loan interest rate.
“Customers can choose from more than 80 popular vehicles and get a rate of just 4.29% (4.83% comparison), which is a lower interest rate than many big bank customers pay for their home loan,” Ms Mortimer said.
Why is EOFY a good time to buy a car?
The June/July period is historically about 30% stronger in terms of car sales, thanks to the ‘end of financial year’ deals many dealerships offer.
Dealers usually have a lot of stock to clear before the start of the new financial year, and may also be under pressure to meet their annual sales targets.
Therefore they’re more likely to offer some good bargains on “outdated” car models that really aren’t very outdated at all – this could be especially true this year since car sales have been plummeting every month compared to 12 months prior.
The Federal Chamber of Automotive Industries (FCAI)’s latest figures show sales in May were down 8.1% on last year.
Customers who shop around different dealerships could drive a hard bargain this financial year, but this bargaining power could be turbo-charged by shopping around for a lower car loan interest rate too.