Car Loans Australia

Australia is a car loving nation. Well we need to be really because the public transport systems are generally pretty average. Vast distances and thin populations do that. Also cars are expensive in Australia- thats because the protectionist tarrifes which protect the so-called domestic car industry. So you have to have a car and its going to cost more than you expect. The car loan industry is in great shape in Australia.

If you are new to Australia make sure you have a feel for prices before you try to get a loan - but realistically you are going to have a tough time without a credit history - credit histories from overseas don't count in Australia when it comes to lending

The car loan industry is a well-established in Australia and whether you are looking for loans with bad credit or just the cheapest loan possible then you should find something to suit. One thing you should do is work out your budget before you go anywhere near a loan company. What you want to spend and what repayments you can afford is something you want to know before the pushy salesman tells you that you can borrow three times as much - with three times as much commission to him of course.

Also remember that when buying a car in Australia you are also going to have to pay State sales tax on the car purchase - the figures vary - but usually NSW is one of the more expensive states and Queensland is one of the cheapest. In fact you will find it a lot easier to buy a car which is already registered in the state that you will garage it. So really you should look for a car loan quote in that state as well.

Cheap Car Loans Australia

So where to find the cheapest car loans in Australia? Well its definitely not at the car dealership!  Although there are plenty of attractive deals, particularly in these tough economic times, to be had - avoid financing via a dealership. The car loan will actually come from a finance company and they are notorious for charging through the nose as far as customer is concerned. I'll say it again sort out your finances before you step foot on the forecourt of a car dealership.

In fact if you have your finances sorted out you can also buy privately. Buying a car from a private seller is almost always cheaper than going via a dealer - sure its buyer beware - but even paying for a mechanic's report is only cost you a few hundred dollars. A private seller will only want to be paid in one of three ways though: cold hard cash, a bank check or a transfer into their account. If you want to drive the car away once you decide to buy it cash is king in this type of transaction.

Many other places will give you a car loan in Australia. Your current bank or credit union is a good start. There are also specialist car financing companies who specialize in bad credit car loans. Australia has many options from cheaper secured car loans to the more expensive loans - which is the price of having bad credit in Australia. Unlike America you will have significant difficulty getting finance if you have been bankrupt within the last seven years or a self-employed and can't prove a good record of income. These is where low-doc type lending comes into play - but you are going to be looking at high interest rates.

Another option - particularly if you credit cards is to consider a low interest rate credit card - this is the ultimately flexible loan and you can choose to repay the balance at any time. So if you think you will have that opportunity then maybe this a good option. Rates can be quite low to encourage you to change credit companies so shop around for a good deal. Just make sure you dont use the car to build up more debt without planning on how to clear it - that is the way to financial ruin.

Wherever you decide to get your car loan Australian companies will have similar requirements - you will need to over 18 and a permanent resident. You will need some proof of income and suitable identification and address confirmation. If the loan is going to be secured against the car you are buying - which is usually what happens if you buy threw the dealer, but you can also do this to reduce your interest rate - you need to provide all the details of the vehicle including exact model and year so that the company can calculate the value of the vehicle. Remember a car is rarely an asset - it won't make you money - rather it will cost you money. Don't borrow excessively for a car and then have the car loan debt last longer than the car itself!