

Is a car loan right for me?
It’s nearly EOFY - tax time is upon us, and with it comes the opportunity to secure a new vehicle for a fantastic price.
Many dealerships will offer discounts around this time of year, as they work to clear stock or meet targets. If you own a small business, you may even be able to claim your purchase as a tax write off!.
Done correctly, a car loan can be a fantastic option to optimise your cash flow and secure the vehicle you want or need, for work, leisure or both.
The easy answer: speak to a finance broker - don’t walk into a dealership expecting to get the right deal.
While you do some research and compare your options, have this information ready:
- The cost of the vehicle you want to buy
- The amount you can afford as a deposit
- How much you can afford to spend on monthly repayments
- How do you plan to use the vehicle (will it be used for business?)
- Your current financial situation
Several factors will influence the cost of your car loan, including:
- Your income
- Your credit rating and history
- Your assets and liabilities
- Your history of savings
- The type of car that you choose
- Whether you own your own home
- If you are self-employed
- The term of the repayment
- The balloon at the end of the term
- If you car loan is secured or unsecured
To determine your eligibility for a loan, the lending criteria assessed will include:
- Your credit score
- Your annual income
- Your total savings
- Your regular living expenses
- Other personal loans
Use our car loan calculator to get a general idea of what your weekly repayments and total interest payments might look like over different loan terms!
What is a balloon payment?
A car loan balloon payment is a large one-time repayment you make at the end of your loan term. Instead of paying off the full loan amount gradually through regular repayments, a chunk of it is deferred until the end of the loan term.
You might choose this option to:
- Reduce your regular repayments
- To get the car you need
- To free up cash flow
- If you want to trade in your vehicle regularly
Secured vs Unsecured Car Loans
A secured loan:
- Is “secured” against an asset (in this case, the car, but this could also be a property or another high-value asset).
- Reduces risk to the lender.
- Allows the lender to repossess the vehicle to cover their costs, if you fail to make repayments.
An unsecured loan:
- Is not secured against any collateral (such as the car or any other assets).
- Can cost you more in interest and fees because the lender takes a bigger risk.
- May require the lender to take you to court to get their money back, if you fail to meet your repayments.
What does a finance broker do?
We’ll assess your financial situation and your goals and do the research and negotiate with lenders to create a shortlist for you with suitable options you are eligible for.
We’ll help you secure pre-approval with your preferred lender, so you can car-shop with confidence.
As soon as you’ve made your decision, we’ll work (very fast) to secure finance from your lender. All that’s left for you to do is negotiate, pick up the keys and drive away.