Vehicle finance & interest rates

[vitchie]

Hi

 

Just wanted to check what a typical interest rate is when calculating vehicle finance? I know the interest rates are generally low in Australia, but what effective interest rate do you get for vehicle finance? 1-3% or 6-8% etc.

 

Thanks in advance!

[Kevin]

Hi vitchie,

 

I don't have first-hand experience, but I have some usable data from canstar.com.au. The following are the lowest interest rates available over a 5 year term.

 

unsecured: minimum 6.5%, median of top 10 is 8%

secured: minimum 4.7%, median of top 10 is 5.4%

 

I am guessing and secured means that the deposit for the purchase is non-zero.  I got these values for a $10000 car loan in NSW, but they do not seem to be very sensitive to the region, nor to the loan amount.

 

[vitchie]

Thanks for the info!

[Peterthe1]

Look carefully before committing to buy. A lot of car dealerships offer 0% car loans. Read the small print, there is no interest but a lot of other fees which make up the "0%" interest. Look out for account handling fees, annual fees, finance fees, etc. Remember nothing is for free.