Car Loan Guide: What you need to know about interest rates, the choices available to you, and the costs.
Car loans are a great way to pay for your next car. But it can be hard to know what you’re getting into. If you want a smart and affordable loan, then we have the perfect guide for you! We’ll take you through everything – from rates and costs to how to choose the car that’s right for you. At Ezilend, we like to make lending an easy experience with a personal service attached. We like to see you in the driver’s seat, and will support you through our 25 years of lending experience.
Car loans with Ezilend come with specialised Loan Consultants backed by an extensive network of lenders. Our services are available Australia-wide, through a network of local branches. Our team make sure our service is as personal as possible. With 25 years of experience in finance and lending, our team has helped thousands of Australians buy their new cars every year without any hassle at all!
Our service is backed by hundreds of 5-Star testimonials from over 900 Australians who describe our service as “impeccable,” “professional” and “very easy for me to understand.” In the majority of cases we get to settle car loan applications very quickly and our customers are “extremely happy” and have told us though our TrustPilot reviews they would “Very Highly Recommend” us.
What interest rates can I expect with a new vs. used car loan?
With Ezilend car loans, you can expect the best possible interest rates based on your purchase and your credit score, whether you are buying a new or used car. Buying a second-hand vehicle does have an extra level of risk associated with it. There are occasions where specific lenders will apply a higher interest rate for those who opt to buy second-hand over a brand-new car. The benefit of using a finance broker to secure the loan is that we examine all the possible loan solutions available. We help you determine the best possible loan for your needs.
The best way to determine your interest rate is by contacting one of our specialist loan consultants. They will help you choose the best possible rates and terms available to you and pre-approve the correct amount based on your needs for both new and used cars!
What costs should I expect?
Car loans are a great way to pay for your next car, and it can be hard to know what you’re getting into. This is where this guide comes in! We’ll take you through everything – from interest rates and costs to choosing the right car for you, whether it’s new or used.
Ezilend Loan Consultants will make sure that we provide personalised representation with 25 years of experience in finance and lending under our belt. We’ve helped thousands of Australians buy their new cars every year without any hassle at all!
The costs you can expect will involve registration, insurance, and on-road expenses. Some of these costs will already be built into the purchase price of the car. In other cases, they may be added fees.
With new loans, the associated costs and/or loan application fees will vary from lender to lender. This is where the experience of a broker comes into play. Looking at the headline interest rate alone will not tell you the whole story. You need to consider the interest rates, application fees, annual fees and any early repayment charges that may affect each loan. The repayment terms’ flexibility can also factor into the equation and affect the overall suitability of that lender to your needs. As an example, what might look like a higher interest rate loan may be the best possible option in some instances because that loan is free of any other expenses.
Weeding through the fine print, terms, and conditions is where Ezilend has your back. We understand the finance terminology and can help determine the overall cost of the loan for you. We can see through the flashy bright interest rates with little stars beside them and decipher the real story for you. Getting you the best possible rates and terms is what we are all about.
The Pros and Cons of Buying Second-Hand Vehicles in Australia
People buy second-hand vehicles for a variety of reasons. However, the most common reason is usually to save money. This may relate to either the loan size required for a new car or the fact they prefer not to drive away in a car that will immediately depreciate. But let’s have a look at the pros and cons for second-hand car purchases.
The cons of buying second-hand:
With second-hand cars, you do not know what it is you are buying. Therefore, you are reliant on the honesty and integrity of the seller. This is not to say that those selling second-hand cars are dishonest, but you need to ask the right questions to truly understand the cars’ history. You can take the time to consult with the available services in your state to investigate the car’s history. You can also invest in inspections by either your local motoring agency or mechanic to give you an idea of the car’s reliability.
It may be worth investing in major mechanical and safety upgrades with second-hand vehicles before driving off with your deal. In most cases, you will benefit from comprehensive warranties that come with the upgrades. But many people turn their nose up at this thought, and the added costs can make this option not financially viable.
Some leases may require you to buy the vehicle at the end of the lease (so it is good to know about this beforehand). And finally and without fail – if you don’t know much about cars, it can be challenging to see if you’re getting a good deal or not.
The pros of buying second-hand:
Prices of buying second-hand are usually significantly lower than for new cars – and many people will only buy second-hand for this reason alone! There is also the fact that some warranties can still cover your vehicle despite it being pre-owned (again, ask about this before you agree to anything). And finally, for those who don’t know much about cars: the price will usually reflect the quality.
Ezilend’s advice? If you are on a tight budget and only plan to use your car infrequently, buying second-hand may be worth considering as it can save you up to 30% if not more! If instead you have your heart set on a new car, check out our article on Buying A New Car and make sure you are prepared to negotiate to get yourself the best possible deal.
The Best Types of Cars for Families
When considering the best types of cars for families, it’s important to remember that each person in your family has different needs, so consider these things. The age of your children will also factor heavily into the choice you make. Fitting baby capsules and car seats into the back of your vehicle will require the appropriate anchor points. The position of airbags and other safety features also play a role when you have a newborn baby. You can get advice from your local ambulance station on cars that best accommodate baby seats and capsules. They also provide a safety fitting service to give you complete peace of mind that your young children are correctly seated in the vehicle.
As your family grows, activities such as school drop-off and pickups, carpooling and sporting activities will mean kids need a vehicle with lots of room. Larger families need room for more grocery and storage space for family holidays. If you intend to tow a camper or boat, your car choice will need to factor these ideas into the final decision as well.
The Best Types of Cars for Young People
Starting out with teens who have just got their licence, they will need a safe, reliable, and fuel-efficient vehicle. A car that is not too expensive to insure or run will be the best option – unless Mum or Dad intends to foot the bills. Teens have limited budgets to work with as they embark on life’s journey but still require something reliable. They need to be able to get to and from work, university, or TAFE. With limited income, their car service and repair costs need to be inexpensive. They benefit from youth, and that family are more likely to help when they get stuck. Still, reliability and driver safety are the number one factors for teen cars.
Young couples without children may only require a small vehicle for local outings, stocking up on groceries – or day trips to the beach. However, daily running costs and reliability are vital as young people are most likely saving up for their own homes. Therefore, cars that are inexpensive to service and repair, with parts available locally without long wait times, are the best choices for this age group.
The Best Types of Cars for Retirees
If you are a retired couple, your car probably does not need to accommodate the additional space that a large family needs. Instead, the two of you may prefer a smaller vehicle to suit your daily outings. Or you may be adventurous travellers, towing your caravan across the country as “grey-nomads.” So the decisions about which vehicles may be suitable for you really depend on how you like to spend your spare time. Holidaying and accessing local facilities to suit your lifestyle are the key considerations for you.
Other Key Considerations
People who travel long distances often need reliable vehicles with safety features (such as ABS, Electronic Stability Control and Airbags). It’s also important to consider if the distance you cover is within metropolitan areas or on highways with fewer opportunities for help.
Long Term Car Maintenance Plans
These come in two flavours. An extended warranty option (which usually covers any major mechanical issues) or a pre-purchase inspection service offering a comprehensive assessment.
Either option will provide peace of mind for the purchaser, but they don’t often come free. When working with dealerships, these are sweeteners that they may offer to get you over the line. So these types of “incentives” are worth looking for as long as they do not overly inflate the car’s purchase price.
Roadside Assistance Schemes & Insurance
Regardless of the distance you travel, road-side assistance and insurance are other considerations you should be aware of when it comes to owning a car. With some insurers, road-side assistance is provided within your policy. As with all expenses related to your vehicle, it makes sense to shop around and get the best possible deal to suit your needs.
How do I buy safely from private dealers?
The best way to buy a car from private dealers is with some help. It does not matter if you enlist the assistance of an experienced and expert loan consultant who will ensure that you are dealing with a reputable business. Or you take your best friend, father or partner with you for that sense of reassurance. The most important thing is to do your research and stick to your budget.
There are many ways to find out about the history of a vehicle. From government rego services to having the car inspected by a mechanic, you can also test drive it in different conditions to see how it handles for you. If you need help negotiating the price, again, get some help. In some cases, loan consultants can do all the negotiating on your behalf and won’t accept offers if they know it will lead to a bad deal for you. Instead, they’ll give advice on what type of vehicle would suit you best, whether it be new or used, second-hand or leasing, before making sure there are no hidden costs involved before doing anything else.
Are you looking for a way to finance your used or new car purchase?
Ezilend is Australia’s premier provider of car loans, and we are backed by an extensive network of lenders. One call to our professional team will set you up with an Ezilend Loan Consultant who will do all the hard work for you!
Find the best possible loan rates and terms with the help of Ezilend. We can provide advice on what type of loan would suit your needs, ensuring no hidden costs are involved. There’s nothing better than some peace of mind when it comes to buying a car. So why deal with the hassle?