Car loans

Buying a new or used car is a major purchase and you should understand the fees and interest rates you will pay if you finance the purchase.

Firms offering such finance have a duty to disclose all the necessary detail.

The problem is that most car finance conversations happen after you have found the car you want, and the disclosures then make it hard to gracefully do a proper comparison when the 'deal is on the table'.

This page will help you understand where the market is before you talk about finance with a car dealer or seller.

Car loan interest rates always seem higher than home loans, and the temptation is to add to your mortgage for the car. But remember a mortgage can last for decades, whereas a car loan is usually 48 months or less. The shorter the loan term, the less total interest you are likely to pay (despite the interest rate). Use our calculator here to compare.

Only published interest rates or interest rate ranges are shown on this page. Most lenders also charge one-time establishment fees, plus often they will charge monthly account administrative fees on top of the interest rate. These costs can push the effective cost of credit (debt) up significantly. We recommend you find out three core things before you enter into any financial commitment. 1.) the net amount you will receive in your hand from this loan, 2.) the total amount of each payment, and 3.) the number of payments you will be required to make, and how often (ie: weekly, fortnightly, monthly). Then you should enter this information in this calculator. It will show the effective cost of the debt you are committing to.