Car Loan Interest Rates
Car Loan Interest Rates Vary By Lender
As is to be expected, car loan interest rates vary from one lender to another. Therefore, you need to shop around and analyse offers from different lenders and not simply go with your current bank because you think they have the best deal. You need to set aside any notions of loyalty you might have to a bank and look after your wallet, which is exactly what lending institutions do as well.
So, make sure to research as many lenders as possible and also look beyond mainstream banks because you will often find that non-banking lenders offer much better car loan interest rates. So, when conducting a car loan interest rates comparison, remember to look at all the offers on the market and not just traditional lenders.
Rates Vary By Type Of Loan
A lender will often feature different car loan interest rates on different types of loans. The two main types of loans being offered at the moment by lenders are unsecured and secured loans, each with their own advantages and disadvantages.
A secured loan is, generally, cheaper than an unsecured loan but it is also more rigid since lenders don’t accept just any car as security. With an unsecured loan, you will pay a larger amount in interest but you have the freedom of purchasing any vehicle you like, irrespective of its age.
The choice is really up to you but if you are going to be purchasing a new car, you are probably better off getting a secured loan.
Choosing The Loan Term
Some lenders will offer lower car loan interest rates on longer terms. However, this is not always a good course of action because the total cost of the loan increases as it gets longer. In other words, it’s not always worth adding a year or two to your car loan as you could actually end up paying more. You can use a car loan interest rates calculator to work out the total costs and determine whether it’s a good option or not.
There are many other factors that can influence car loan interest rates, including your credit rating, which is why it is important to do your due diligence to make sure you aren’t paying more than you should on your car loan.
Featured Personal Loans
| Personal Loan | Details | Min Interest Rate | Min Comparison Rate | Min Loan Amount | Min Loan Terms | Apply Fee | |
|---|---|---|---|---|---|---|---|
 ME Bank Personal Loan | A low rate personal loan from ME Bank with no application fee for a limited time. | 13.59% | 13.81% | $5000 | 1 year | $0 |   |
 Aussie Personal Loan | A smart way to consolidate your bills to save time and money so you can pay for your holiday, a wedding or renovate the house. | 13.90% | 14.84% | $3000 | 1 year | $199 | |
 Sugar Money Personal Loan | Fixed rate personal loan with flexible options to get you funds when you need it. | 13.99% | 15.00% | $3000 | 2 years | $250 | |
 bankmecu Personal Loan | A convenient and fast way to purchase a car or debt consolidation with affordable rates and fees. | 13.49% | 14.55% | $1000 | 1 year | $150 | |
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