Borrow
Car loans uptake ‘mind-blowing’ among Australian investors
Aussies borrowed billions of dollars to purchase new cars in 2018, with total loan interest repayments predicted to be over $500 million this year.
Car loans uptake ‘mind-blowing’ among Australian investors
Aussies borrowed billions of dollars to purchase new cars in 2018, with total loan interest repayments predicted to be over $500 million this year.
Finder’s latest analysis of ABS data has found that Australians borrowed $8.1 billion in car loans last year.
According to the market researchers, 1,175,908 new cars were sold in the 12 months to November 2018, with 19 per cent attached to car loans.
With the average new car loan interest rate close to 6.3 per cent and the average financed car purchased for $36,139, this means that an estimated $513 million will be paid in car loan interest in 2019.
Graham Cook, insights manager at Finder, said the figures suggest a new car is bought in Australia every 27 seconds and a car loan is taken out every 2.5 minutes.
“It’s mind-blowing to think that more than $1.4 million in interest is paid back on these new cars every single day. That’s around the same value as 39 new cars,” he said.
He recommended Australians conduct thorough research before taking out a loan, to assess whether the terms are right for them.
“Learn about the car loan rates available online before you go to buy, and remember that in all financing matters, knowledge is power – use it to improve your personal situation,” he said.
He said Australians interested in taking out a car loan should understand that a cheaper interest rate does not necessarily equate to a better deal.
“It is possible for the cheaper rate to cost you more if the upfront or monthly fees are higher,” he said.
He advised that prospective borrowers consider looking into the range of interest rates available on the market, negotiating with their preferred lender and/or borrowing less if they are certain about adopting a car loan.
Loans
Looking for a loan pre-approval? Here are 5 things you need to know
Applying for a mortgage pre-approval can be a real boost for anyone looking to purchase property – but it’s important that would-be home owners do have a good understanding of what a pre-approval ...Read more
Loans
The remarkably simple way to pay off your mortgage sooner
For those looking to get out of debt quicker, a mortgage broker has explained a remarkably simple trick to pay off a home loan sooner. ...Read more
Loans
4 little-known benefits of using a mortgage broker
Mortgages can be confusing at the best of times. Add in a myriad of lenders offering different rates with various benefits, plus an extremely cautious banking system, and it may be easier to get an e...Read more
Loans
Big 4 bank estimates 15k customers cannot pay mortgage
One of Australia’s big four banks has estimated that up to 15,000 of its mortgage customers may not be able to resume repayments, as the bank begins a two-month engagement process to assess the impa...Read more
Loans
Banks call customers as mortgage deferral period ends
A small but growing number of borrowers who have put their mortgage or business loan on hold during the COVID-19 pandemic are beginning to pay their debts as the first six-month deferral period comes ...Read more
Loans
How risky is Australia’s household debt?
The central bank has warned house prices could plummet in the event of severe economic slowdown, but it would only trigger a small increase in the share of mortgages at risk of defaulting. ...Read more
Loans
How long should I expect to be paying off a commercial mortgage?
How many years is the average commercial mortgage term? Find out how you can get the best term length that suits your needs. ...Read more
Loans
Why it pays to have a principal and interest loan
Owner-occupiers who are paying principal and interest on their mortgage are being rewarded by financial institutions with a lower interest rate. ...Read more
Loans
Looking for a loan pre-approval? Here are 5 things you need to know
Applying for a mortgage pre-approval can be a real boost for anyone looking to purchase property – but it’s important that would-be home owners do have a good understanding of what a pre-approval ...Read more
Loans
The remarkably simple way to pay off your mortgage sooner
For those looking to get out of debt quicker, a mortgage broker has explained a remarkably simple trick to pay off a home loan sooner. ...Read more
Loans
4 little-known benefits of using a mortgage broker
Mortgages can be confusing at the best of times. Add in a myriad of lenders offering different rates with various benefits, plus an extremely cautious banking system, and it may be easier to get an e...Read more
Loans
Big 4 bank estimates 15k customers cannot pay mortgage
One of Australia’s big four banks has estimated that up to 15,000 of its mortgage customers may not be able to resume repayments, as the bank begins a two-month engagement process to assess the impa...Read more
Loans
Banks call customers as mortgage deferral period ends
A small but growing number of borrowers who have put their mortgage or business loan on hold during the COVID-19 pandemic are beginning to pay their debts as the first six-month deferral period comes ...Read more
Loans
How risky is Australia’s household debt?
The central bank has warned house prices could plummet in the event of severe economic slowdown, but it would only trigger a small increase in the share of mortgages at risk of defaulting. ...Read more
Loans
How long should I expect to be paying off a commercial mortgage?
How many years is the average commercial mortgage term? Find out how you can get the best term length that suits your needs. ...Read more
Loans
Why it pays to have a principal and interest loan
Owner-occupiers who are paying principal and interest on their mortgage are being rewarded by financial institutions with a lower interest rate. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
