How do I get a Low interest car loan?
You meet following criteria
- Select a secured car loan
- Maintain a credit history
- Have a balance Income
What is a low car loan interest rate?
A low interest car loan is a loan that offers a borrower lower than average interest rate. The amount of interest charged on loan product is counted as percentage of the amount borrowed. Interest rates are the amount which lender charges the customers for borrowing money.
- Fixed rate car loans will have you charging the same interest rate duration of loan term. They are less flexible
- Unsecured Car loans have higher interest rates. They may have less restriction on age of vehicle you purchase
- Secured car loans have lower interest rates as they are guaranteed by value of car
- Variable rate car loans interest rates can increase or decrease during loan term which effect monthly repayments
Why are not all car loans low interest?
Different lender have different interest rate to offers to borrowers. there are various factors
Borrower credit rating
A borrower with good credit score be able to get a more competitive rate than a borrower with a less desirable credit score. Low interest car loans are offered for borrowers with excellent credit score.
Online lenders have fewer overheads like rent,electricity charges and are able to use the money saved to lower their interest rates
Varying fee structures
Few lenders have higher fees and lower interest rates while others have higher interest rates and charges lower fees.
Which banks offer the lowest rate car loans?
A variety of Australian banks and non bank lenders provide lower rate car loans
- Non bank lenders 360 Finance,Direct Money, Prime Edge Car Loans and loans.com.au
- Mutual banks Beyond Bank,IMB BanK, Greater Bank, Bank Australia
- Mid size Banks Bankwest, Suncorp Bank St George and Bank of Queensland
- Big four banks NAB, ANZ, Commonwealth bank and Wespac
- Credit unions BCU, CUA , My Credit Union Community First Credit Union
Can anyone get a low rate car loan?
If you are searching for a car loan your credit history and credit score play a vital role. Vehicle lender assessess your loan application. They will perform a check of your credit history and credit score.
The higher your credit score the less likely you are default on your loan. The higher credit score the more competitive interest rate may be offered.
The higher your credit score the less chance you are default on your loan.