Car Loans

Getting a Car Loan? Vie Financial Has Multiple Options

Buying a car? Vie Financial can assist with that too. Most car loans are secured against the car you buy, meaning that your car is used as collateral for your loan.

Secured car loans can be cheaper than unsecured options (such as a personal loan), but with various considerations to take into account, speaking with a Vie Financial broker will ensure you are partnered with the most suitable option for your circumstances.

In Australia’s competitive car loan market, there is a tonne of lenders and loans to choose from. You can finance a car at the dealership, your bank, a finance broker, or utilise a comparison website for the very best rate. As a consumer it can be confusing and difficult to determine the best option when everyone boast to be the best.

At Vie Financial we like to take the confusion and stress away and determine the best options for you. We take all of your circumstances into full consideration before offering advice, finding the perfect lender and applying for a car loan.

What Are the Benefits of a Secured Car Loan?

  • Most car loans in Australia are secured. Unlike unsecured personal loans, a secured car loan uses your car as collateral in the event you default on the loan.
  • Due to the secured nature of car loans, they’re often easier to get approved for and carry lower interest rates. This means lower monthly payments and a lower overall loan cost.
  • To be approved for a secured car loan, you must fill out an application and provide proof of income. Your credit history will also be checked.

What Are the Different Features of Car Loans?

Different providers in Australia offer drivers different features based on their own unique circumstances. Some of these features include:

  • Variable or fixed interest rates
  • Flexible repayment schedules
  • Introductory low-interest rate offers
  • Balloon payments
  • End-of-loan payment refinancing
  • No early payoff fees

Vie Financial keeps these features in mind and decides which, if any, are essential to you. We are also on the lookout for upfront fees and penalty clauses as well which you should always inquire about with a lender.

What Are the Interest Rates?

All lenders charge interest rates on car loans and other loan types. This is the price you pay as a borrower.

If you purchase a $30,000 car at an interest rate of five per cent, then your repayments then your repayments are calculated at five per cent per year of the loan balance.

Continuing with this example, you can expect to pay about $125 in interest with your first monthly repayment.

However, when the loan balance reaches 50 per cent of the original balance, $15,000 in this case, then the interest on your monthly repayments will be reduced by 50 per cent.

So, you could expect to pay approximately $75 in interest with all future monthly loan repayments.

What’s the Average Interest Rate on Car Finance in Australia?

Unfortunately, interest rates rise and fall all of the time, so the average rate one day may be different than the average rate the following day.

Interest rates are also entirely different from one borrower to the next. This means, if the average rate today is 10 per cent, for example, then the rates may range from as low as three per cent to a high of 30 per cent.

That being said, there’s no need to settle for a certain interest rate or lender. Lenders are quite competitive. At Vie Financial, we can connect you to a variety of lenders, allowing you to shop with us for the absolute best rate.