Best Car Loan Rates

Best Car Loan Rates

We’re often told that the best car loan rates are the ones with the lowest interest rates for the longest loan terms. It’s a mouthful, admittedly, but it’s also not a great idea for everyone when you think about it.

A car is a boon, whether it’s a caravan or an unassuming family truck, especially in the unforgiving terrain of the Australian outback. It gives you the freedom to go places that public transport doesn’t lead to, so we understand that you’re looking for the same kind of flexibility when it comes to car loan rates.

If this is your first time searching for the best car loan rates in the credit market, here is some advice we suggest you keep in mind before applying.

Is there a way to lower my car loan interest rate?

The most effective way of lowering your new car finance rates is by having an excellent credit score and applying for a secured loan for car credit. Full payment on your vehicle, long repayment terms, and low monthly interest at the best car loan comparison rate – it sounds amazing.

But hear us out; the average car loan rate may actually be hurting your score indirectly. Here are some reasons why competitive personal loans may be the smarter financial move.

You’re buying a used car – emphasis on ‘used’

When it comes to pre-owned vehicles, there’s always some doubt about the seller’s or dealer’s claims about their condition. How many kilometres does it have left on the odometer? Does it require repairs? How did the exhaust pipes get water in it, really?

Questions like this can be resolved by a thorough investigation by finance companies for cars, which is fair enough. However, the question of utility remains. By tying you up to a car loan financing commitment longer than your vehicle may serve you, you may end up paying ongoing fees for your car longer than you’ve gotten to use it.

In instances like this, a shorter loan would be ideal – you could get a new loan for a newer vehicle by the time the used one gives up the ghost. The best car loan rates should consider the state of your desired vehicle as part of the calculation.

You plan on moving abroad

Moving is a big step for many young adults. It means new sights, new friends, and new opportunities to build a life of their own. A car is essential for these moves – unless you’re moving out of the country. You may have gotten the best car loan rates when you first got your car, but now that you’re moving, things will look a bit differently.

For starters, what happens to your car? Car freight is expensive, especially when you factor in the different regulations between countries and what it’ll cost to get your car tested for safety. Most people would just leave their vehicle behind with family or sell it to someone else.

If you still have current car finance rate obligations, however, leaving your car behind without closing the loan will damage your credit if you don’t plan on settling it before emigrating.

While you may mean no harm in presuming that the loan value will still return to the credit provider through repossession, this still leaves a big red mark on your credit history that could hound you even in another country. Despite having the best car loan rates at the time, if the remaining dues for your car loan are still years out from now, you may also be looking at settling a hefty sum before you can move.

This leads us to another concern.

Longer loan terms may end up being more expensive

When it comes to bank loan rates for cars, ‘low’ doesn’t always mean ‘less’.

Think of it like this: you want to get somewhere faster, so you choose a more expensive mode of travel, like flying. Sometimes, you want to get somewhere through the scenic route, so you take your buddies along in a caravan and drive through the region.

Each mode of travel has its own commensurate expenses and comforts – just like the best car loan rates. While the lowest auto loan available may be more comfortable at first glance, you may reconsider when you calculate the earned interest over the years and find you’re paying twice as much as your car is worth.

We suggest you always compare car loan rates between auto loan providers before committing to a loan. Just because you’re paying less fortnightly doesn’t mean you’re also paying less for the length of your loan term.

What is the best option for car loan financing?

If you’re thinking about the best car loan rates in car finance in Australia by comparison, SocietyOne has some of the best value car loan options you’ll find online. That’s because we offer both unsecured loans and secured loans instead of just a one-size-fits-all loan product.

The main difference between the two types is the asset requirement. Secured loans require a pledged asset – verifiably owned by the borrower through documents – to insure the loan in the event of default, while an unsecured loan doesn’t require it. The loan floor for both types is $5,000 at a minimum term of two years, while the ceiling is $70,000 for secured loans (payable up to seven years) and $50,000 for unsecured loans (payable up to five years).

Each loan type has its own benefits, which are further customised when we review your application so you can compare car loans before completing the application. You may also estimate your repayments through our loan repayment calculator, or our comparison rate table on our website.

How do I know if I'm getting a good deal on my car loan?

You know you’ve found the best car loan rates from a credit provider when it’s customised specifically to your preferences and credit standing. Not all borrowers have the same circumstances or needs. A person who requires a bike loan for mobility won’t want the same terms for someone working on loan consolidation – and neither should they since each person’s credit solutions address different concerns.

This is why we at SocietyOne provide credit resources for our borrowers to help them determine their options, even if they’re not thinking of taking a loan right away. We offer low personal loan rates on our unsecured loans and competitive terms for secured ones.

We want to offer a faster and fairer deal than what a traditional bank loan can offer you. If you’re still wondering where to get a car loan or a different credit product that also invests in you, SocietyOne is the place to go.

Improving lives one loan at a time, the SocietyOne way

The best car loan rates aren’t the only credit products at SocietyOne.

Our platform is an award-winning licenced credit provider that’s served thousands of clients since we first opened our books in 2012. From a renovation loan or wedding loan to holiday loans and personal loans – the choice is yours when it comes to approaching your credit solutions. We’ve always incentivised good credit standing because good credit deserves good deals, and it’s been the cornerstone of our lending practice from the start.

Come to SocietyOne for the best car loan rates today, and get the car of your dreams tomorrow.