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Personal Loans

Buying a car

 

Step 1

What should I consider when setting a budget?

Instead of falling in love with your dream car then stretching yourself to pay for it, think about what you can afford comfortably. Before you start test driving vehicles, do some research about the type of car you are looking for so you know what to expect in terms of price and value for money. You’ll also want to factor in the extra costs of owning a car, such as registration and insurance.

Costs to consider

  • Registration
  • Insurance
  • Petrol
  • Stamp duty
  • Road side assistance
  • Services
  • Repairs
  • Accessories
  • Dealer deliver fees
Quick questions
If you’ve purchased your car at a dealership, you’re required to pay ‘on road’ costs before you drive away. These can include registration, insurance and stamp duty.

Step 2

When it comes to choosing a car, what should I look at?

Just like any financial decision you make, it’s worth taking the time to research all your options. It can be easy to get caught up in the excitement, so writing down exactly what you want can help you stay on track. Keep in mind too that the size of the engine and the car’s fuel efficiency will continue to affect your running costs for the life of the car.

When you’re setting your budget and considering what type of car you need, you’ll also need to decide if you want a new car or a second hand car.

New vehicles

Pros

  • New car warranty
  • Modern features and customisations available
  • May include roadside assistance

Cons

  • More expensive
  • Value depreciates faster
  • May be tied to specific mechanics to maintain warranty (which can be expensive)

Used vehicles

Pros

  • Get more for your money
  • Value won’t decrease as rapidly
  • Huge range to choose from

Cons

  • May attract a higher interest rate if you borrow to pay for it
  • Unsure of previous owners
  • May have problems you aren’t aware of
Fast Facts

You need to find a car you’ll love to drive, but keep in mind you may one day want to sell it. White, silver and red cars tend to maintain their value because the colours appeal to a broader audience and they don’t date like other shades can.

Step 3

Can I borrow money to pay for my car?

Once you’ve set your budget and know what type of car you want, you’ll need to figure out how you’re going to pay for it. If you need extra money, a car loan may be a good option. Use the calculators to see how much you can borrow and what your repayments might be – and be sure you have enough money left over to get out and enjoy that car!


Important information Important information Show content

Results are based on a single, full time PAYG income with no dependants. Any upfront costs that may be associated with the loan are capitalised in the loan amount. The results from this calculator should be used as an indication only. Results do not represent either quotes or pre-qualifications for a loan. The actual amount you can borrow may vary depending on factors including your verifiable net income, other debts or liabilities you have and the number of dependents you have. Lending is to approved applicants only and all lending is subject to a detailed credit assessment.

Repayment is for principal and interest and is indicative only based on the stated information. Changes in interest rates, repayment frequency and loan term will affect the repayment amount.

Assumptions

Expense Details and Default Values
Default annual expense allowance - The calculator assumes that the borrower has a minimum set of expenses of $16,500 based.
Maximum percentage of income available - currently set at 100% of income

Month
All months are assumed to be equal. In reality, many loans accrue on a daily basis this can lead to varying interest in different months.

Number of Weeks & Fortnights in a Year
One year is assumed to contain exactly 52 weeks or 26 fortnights. Thus the assumption is for a 364 day year.

Rounding
The calculator uses the unrounded payment to derive the amount of interest accrued over the full term of the deposit, however, institutions round repayments to the nearest cent.


Important information Important information Show content

Rates current as at 16 May 2017 and subject to change.

The calculations provided are estimates only and based upon the information entered into the calculator by the user. The calculations do not include upfront or continuing credit fees and charges. The resulting calculations do not constitute a loan application or variation to an existing CUA facility, loan offer or loan approval.

Comparison rate calculated on a loan amount of $10,000 over a term of 3 years based on monthly repayments. These rates are for unsecured loans only. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

What’s what
If you need extra money to fund your car, the decision to borrow should be well researched and considered. Some car dealerships offer finance that sounds too good to be true, and it probably is. Look out for balloon payments at the end, monthly fees and penalties for paying it off early.
Every lender has an interest rate as well as a few fees such as establishment fees or monthly fees. A low interest rate may be countered by high fees. Comparison rates give you a better idea of the true cost of the loan, factoring in fees to standardise the offer.

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