Car Loan Comparison Rate

Car Loan Comparison Rate

Searching for car loan comparison rates gives you a good idea of which car loan is best suited for you. CarClarity can help you find the ideal loan from over forty lenders and a thousand products. After you enter your details, along with how much you like to borrow and the length of the loan, we’ll match you with a loan that suits your financial situation in less than sixty seconds.

People in the market for a new vehicle will spend most of their time looking for a car and not thinking about the loan they’ll need. Finding the best car loan comparison rate is not usually considered until they find the car they want. Buying a car this way can often mean you don’t get the best car loan for your situation as you’re in a hurry and want to get the car fast.

Researching car loans is not everyone's idea of an excellent weekend. Luckily, CarClarity has done some of the hard work for you. Using our technology, we can take your details and match them with our lenders to provide you with a personalised loan match. In addition to our speed, one of the best things about using CarClarity is that using our services won’t affect your credit score. We only complete a soft credit score check, where we rely on the information you provide to complete the loan matching.

If you already have a car loan, you can complete a car loan comparisons check with CarClarity. If you find a loan that offers a better interest rate than your current lender, you can apply for a refinancing car loan and start paying less each month.

What should I look at when comparing car loan rates?

Car loan comparison rates are mainly used when advertising finance products. Comparison rates are different to loan interest rates, as the interest rate only relates to how much interest you’ll pay on the outstanding amount of your loan. Car loan comparison rates include the interest rates, fees, and charges applicants pay if they apply for and accept the loan as advertised.

Comparison rates for loans were created so people could easily compare loans side by side. When looking at car loan comparison rates, you need to note that it may not consider some penalties, including deferred establishment fees and early payout penalties.  

Therefore, while looking at comparison rates is an excellent way to gauge one loan against another, digging deeper into the loan details could give you a better insight into which loan is best for your needs. For example, if you like making additional payments on your car loan, look for a loan that allows you to do this without incurring any penalties. On the other hand, if you are not interested in making extra payments, you could choose a loan with a lower comparison rate but with fees associated with an early payout or paying an extra amount into the loan.

When you compare car loans in Australia, you can look at the comparison rates to help you quickly determine which loan may be more suitable for your needs. Using CarClarity will help to narrow down the number of loans you need to consider, as we’ll provide your best loan matches from over forty lenders. After you receive your results, you can investigate the loans further and find the one that offers you the best features.

Will I save money if I choose a linked interest rate?

When you’re looking up car loan comparison rates, you’ll find there are two main types of interest rates: fixed and variable. A variable interest rate is sometimes referred to as a linked interest. Linked or variable interest rates are tied to the market and will move up or down as the market dictates.

Variable interest rates are often less than fixed interest rate loans, but they can be more challenging to manage. When you apply for a variable rate loan, you may save more than a fixed rate for the first few payments. However, you could wind up paying more if the market rate increases. If you’d prefer the stability of knowing exactly what your payments will be each month, then you may be better off choosing a fixed interest rate car loan.

If you like the idea of paying less interest but want the stability of a fixed-rate car loan, then you may prefer a balloon car loan. With a balloon car loan, you’ll pay less each month than a regular loan of the same amount and then a large final payment.

What are the different fees associated with car loans?

When looking at car loan comparison rates, you can consider the fees that may come with your loan. Banks and other lenders will often use fees to help pay for some of the services offered with your loan. For example, they may charge a fee if you wish to receive your statements in the mail, whereas receiving them by email is free. With this fee structure, only those who choose to get paper statements will need to pay for them.

The fees you’ll find on car loans will be different for each lender, and they may even be differences between the specific product each lender offers. Here are some of the standard fees you’ll find:

• Early payout or break cost fee. This is for when you pay out the entire loan earlier than expected.
• Monthly account fee. This is often seen on very low-interest rate loans, which are paid monthly.
• Discharge fee. It will cover charges associated with closing the account when the loan is finished. 
• Application fee. This is usually a one-off fee that is paid when you apply for the loan.

If you're looking for a loan that matches your financial situation, then you can search for it using CarClarity. At CarClarity, we can reduce the time it takes to examine car loans by doing it all for you. We’ll take your details and find a car loan that suits you from over forty lenders and a thousand different products. Start your search today!