Compare Car Loans

Car loan comparison

Buying a car? The table below features car loans with some of the lowest interest rates on the market.

How to Compare Car Loans?

Comparing various car loan options is important because aside from a mortgage, a car loan is one of the biggest financial transactions you’ll make. So, it makes sense to do your research first before you apply for one.

Here are several things you should look out for when comparing car loans:

Interest Rate

This is probably the most significant factor to consider since the interest rate is the biggest cost of a loan. Other than looking at the advertised rates, you should also compare comparison rates because the comparison rate provides you with an indication of the overall cost of a loan, including any fees and charges.

There’s also two kinds of car loan interest rates to take into consideration. These are:

• Fixed car loan rates: This means your rate will remain the same during its agreed term with your lender. This lets you enjoy the security of keeping the same repayment amount for the life of your loan. The downside of this is that when your lender cuts their rate you won't be able to take advantage of this lower rate and potentially lower repayments.

• Variable car loan rates: This means that your rate is susceptible to changes. It can increase or decrease depending on the market changes and your lender. This can be a good thing and a bad thing because your monthly repayments can increase or decrease.

Loan Repayments

This feature will depend on the lender and if they offer fortnightly, weekly, or monthly repayments. Your repayment frequency can have an impact on the overall amount you end up paying back on your loan because the more frequent you pay, the sooner you might pay off the balance. This can also mean you can save money on interest.

You can also do loan repayments comparison by using our car loan repayments calculator. You can easily see if the car loan repayment will suit your budget.

Fees and charges

Lenders may charge you certain fees. These can be:

• Application fees: You are charged for applying for a loan.

• Monthly ongoing fees: This is the cost for maintaining your car loan.

• Discharge fees: This is charged at the end of the loan term for closing the account.

• Late repayment: If you’re unable to make the repayments on time you will be charged a late repayment fee.

Features

Check if the car loan provider will be able to offer features that will be useful for you. This can be:

• Balloon payment: This is a feature that allows you to have lower repayments because there will be a lump sum payment that needs to be paid at the end of the term. Usually, it’s between 30-50% of the borrowed amount. It’s very helpful if you can't repay the full amount borrowed over the loan term, giving you the flexibility to save up for the balloon payment.

• Redraw facility: When making extra car loan repayments, if you have a redraw facility you are able to redraw the extra money you paid towards the loan when you need it.