September 24, 2018

What is a Car Loan in Australia

A car loan is a personal loan that you use to buy a car.

You borrow the money and then repay it within a set period called the “term”, which is usually less than five years.

If you buy from a car yard, the dealer might offer to arrange finance for you, but make sure you shop around as you might find a better car loan deal elsewhere such as online.

Process of compare car loans have some key features that you will need to consider.

These include whether you want a fixed or a variable rate loan and whether you want a loan that is secured against your car or one that is unsecured.

Another decision is whether you want to pay your loan off in equal installments or use a “balloon” with smaller installments but a large lump sum at the end.

Whatever you choose, make sure to research a variety of lenders because interest rates vary widely.


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