Finance

Car loans for brand new cars

The CarLoans Team
March 9, 2017

People purchasing brand new cars generally are offered some of the best interest rates on the market. However each and every lender works differently in how they apply interest rates to car loans, some will apply a higher rate for used vehicles than brand new vehicles, where other lenders may apply rates based mainly on the applicants profile and the amount borrowed against the value of the car. Some lenders criteria would require the vehicle to be no older than a certain limit in order to qualify for a loan and some lenders are very restrictive on how you buy the car, whether it be dealership sale, auction or from a private seller.

Because you can only purchase brand new cars from licensed dealers you shouldn’t face too many difficulties finding a financier that will allow you to borrow money for your new car purchase. With so many lenders in the market, buying a brand new car makes it easier to get the loan that suits your personal circumstances. Provided you’ve got a good credit history and no problems with affordability you should have a strong negotiating position to improve your chances at getting all of the features and terms you were after in your loan.

When you buy a brand new car, you would also be paying for other costs, which would include Registration, State based Stamp Duty, GST, Compulsory Third Party Insurance and Dealer Delivery Charges, which can also be financed with your new car, although be aware that these costs do not add any value to your car but do increase your loan amount.

You will also have options with a lot of lenders to request for a balloon payment at the end of the term that could reduce your repayments during the course of your loan, or to possibly take the loan over 7 years. Generally buying a new car will give you the most options when financing in regards to lenders, loan structure and options to ensure you get the right car loan.

With so many options on the market for new car buyers, it could be a good idea to speak to a Finance Broker about your situation, they will be able to conduct a preliminary assessment and review your requirements against their panel of lenders. This could help you save time finding a financier that can offer you all of the features and terms you were after in your new car loan.

If you're looking for car finance, don't look past CarLoans.com.au, get a quote  today!

Important Information: Information in this blog is current at 24/10/2017 and is subject to change. CarLoans.com.au makes every effort to ensure all information provided is correct however it does not warrant the accuracy of that information. The information is general in nature and does not constitute advice. Indepedent advice should be sought. 

The CarLoans Team
May 26, 2018

Download our Free Car Buyers Checklist

Buying a new car? Our guide to buying a used car includes how to do an inspection, a test drive, and whether it's best to buy a second-hand car through a dealer, auction or private sale.

Download the Guide

Download our Free Car Buyers Checklist

Buying a new car? Our guide to buying a used car includes how to do an inspection, a test drive, and whether it's best to buy a second-hand car through a dealer, auction or private sale.

Download the Guide

You might also like...

Top ten high performance cars under $40,000

If you're looking for something a bit more exciting than your average hatchback but don't want to break the bank you've got quite a few options to choose from. Whether you're after the best hot hatch or a precision rear-wheel drive coupe, here are...


Top ten cars perfect for small families

For decades, if you'd asked any Australian what a 'family car' was you would get a very clear definition; a big Australian-made six-cylinder sedan or wagon . Now that we're well into the 21st century, that answer has fractured into several pieces....


car-blog-image

Subscribe to the blog

Buying a New Car?

Download our FREE Car Buyers Checklist

Have any questions?

Call us now on 1300 889 669