Car loans are generally taken when a person intends to purchase a pre-owned or new vehicle. Because the estimated life of a pre-owned car is shorter than a brand new car, used car loans are generally of a shorter repayment duration and carries comparatively higher rates of interest. Australian citizens have the option to choose between many banks and credit providers to secure the best offer on car loans, as both these banks offer attractive deals in this loan product category.

While going for a used car loan, a person has to first undertake a careful inspection of the motor vehicle. Although a used car loan is a secured loan product, whereby the lending bank will use the motor vehicle as a collateral security (guarantee), but interest rates would be somewhere in the vicinity of an unsecured loan. This is due to the reason that the Bank would actually evaluate the vehicle at its depreciated cost and the older the vehicle intended to be financed, the higher will be the interest rate. Banks that finance used cars see an inherent risk in the remaining useful life of the asset and hence charge higher rates of interest to cover up or compensate the risk associated with financing such a product.

Last but not the least, it must be remembered that just like any other loan product, a used car loan also requires careful scrutiny and analysis of various factors; loan amount, rates of interest, repayment capacity of the individual and tenure of loan repayment. Once all these factors have been given due consideration, the concerned borrower can be rest assured about striking the cheapest and most lucrative used car loan offer prevailing in market.
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Online Application for a Car Loan

Online car loan is a recent addition to the existing category of loan product options offered by banks across the world. Australians have the option to choose between many banks to secure the best offer with an online car loan. When applying for an online car loan (be it new or used car loan), it always recommended that you first undertake a careful inspection of the terms and conditions associated with the loan. The principal advantage in an online car loan application is the speed of the application, immediate approval (or denial) with a quick disbursal window of around 48-72 hours, thereby facilitating quick possession of the vehicle.

You  must first decide on which Bank or credit lender you want apply, this is where comparison and research come into play. In the normal course of operations, the application forms are transmitted through to the bank’s server by way of an encrypted web page for security reasons. The loan applicant needs to carefully go through the application form and complete all requested personal and/or financial information.  Online car loan applications are a fast and easy option for getting a new or used car. Providing you have a good credit record you can be driving off in your new car in no time at all.

More about car loan comparison

Personal Loan as the name suggests, is a loan offered by Banks to its customers for the purpose of meeting an expense purely of personal nature. The requirement behind applying for a personal loan can be related to home improvement, child education, religious functions or ceremonies in the family, travel, etc, etc. Although, instances of applying for a personal loan for the purpose of buying a car could be infrequent, (as the individual could opt for applying for a car loan instead) there have been recent trends where personal loans has been availed with the intent for acquiring new car.

Like other developed countries of the world, Australia has emerged as a very strong market for personal loans. Currently the major Australian Banks who offer personal loans are National Australia Bank, St George’s Bank, Commonwealth Bank of Australia, ANZ Bank and HSBC among many others. An Australian citizen, who is desirous of taking a personal loan with the intent of buying a new car, can apply at any of these banks providing they meet a certain criteria.

Few points that need to be considered by an Australian who decides to take a personal loan for buying a new car can be discussed as follows:

Interest Rate Analysis: He should do a careful comparison of interest rates being charged by different Australian banks. After having done this comparison, he should go for the lowest interest option, as that would mean his effective rate of interest would be very close to a car loan.

Repayment Tenure: The repayment tenure should be more or less comparable to a car loan. This would mean that eventually over his loan repayment tenure, his interest payment amount is comparable to a car loan.

Foreclosure Clauses: – Car Loans usually come with very simple foreclosure clause. Comparatively, the foreclosure provisions for a personal loan are a little complex. An Australian, when he considers taking a personal loan for new car must also carefully consider the relevant clauses before he finalizes on the lending institution.