Australian customers can apply for new car loans when they want to purchase a brand new car. Some lenders also allow borrowers to use that loan for purchasing a car that is up to 3 years old as well.
What Is a New Car Loan?
Car loans are issued by financial companies, peer to peer lenders and car dealers. Customers usually have a chance of negotiating a more affordable interest rate since prices of new car are more expensive than second hand cars. Car loans can be either secured or unsecured. Secured car loans are secured by the value of the new car and lenders have a right to take possession that car if the borrower defaults on the loan. On the other hand, unsecured car loans do not require the borrower to offer collateral but applicants cannot be found eligible for that type of loan unless they have excellent credit scores. Also, interest rates of unsecured car loans are higher than secured car loans.
How To Apply For a New Car Loan in Australia?
Applicants should provide necessary documents to the lenders including:
- Proof of identity (passport or driver’s license)
- Financial details (credit, debts, assets, etc.)
- Proof of income
- Details about the car
After signing the car loan deal, funds will be paid into borrowers’ bank accounts and borrowers need to repay that amount regularly in monthly installments with interest plus any fees and charges.
Some New Car Loan Offers in Australia
- IMB Bank Secured New Car Loans: Customers can borrow starting from $2,000 up to $75,000 after being charged $250 upfront fee and a fixed interest rate starting from 5.45% due to their credit profile and other factors. It also contains $0 missed payment penalty and no early exit penalty fee and customers are allowed to make extra repayments.
- NRMA Secured New Car Loans: Customers can borrow starting from $15,000 up to $100m after being charged $499 upfront fee and a fixed interest rate starting from 5.69% due to their credit profile and other factors. It also contains $0 missed payment penalty and customers are allowed to make extra repayments.
- Credit Concierge Secured New Car Loans: Customers can borrow starting from $10,000 up to $150,000 after being charged $400 upfront fee and a fixed interest rate starting from 4.79% due to their credit profile and other factors. It also contains $25 missed payment penalty and customers are allowed to make extra repayments.