Finding the right car loans for your needs

April, 2022

Shopping around to find the best car loan deal can save you a lot of money. But how do you find the best car finance to suit your situation? Getting a better deal on your car loan will depend on your credit history and the car that you are buying, so there are a few things you need to consider before you sign the dotted line.


You need to know what you can afford to pay each week for a new or used vehicle, the last thing you want to do is put yourself under financial pressure. Think about the everyday running costs of the vehicle e.g. can you afford to pay more for petrol and get a V8, or should you be looking at a more fuel-efficient model? Some European vehicles attract higher servicing and maintenance costs, so make sure you research and factor these into your budget. Browse our range of quality vehicles here.

Loan term

Car loan terms are generally between 1 to 7 years. The shorter your loan term is, the higher the repayments will be as you are paying off the balance in a shorter time. The positive here is that you pay less interest so overall the total repayment amount will be less than if you took a loan term of 5 years. Paying out a car loan quickly is not always achievable which is why paying off smaller amounts over a longer-term is a better option for many people.


Car loan repayments can normally be made weekly, fortnightly, or monthly. Think about what option works best for you – if you get paid monthly, will it be a struggle for you to make weekly repayments? How flexible is the car loan? Some lenders will charge you a fee if you make extra repayments and pay your car loan off earlier. If this is something you think you might do – check the fees before deciding if it is the best car finance deal for you.

Interest rates

Interest rates can vary quite a bit and a lower rate could save you hundreds, if not thousands over the life of your car loan. What rate you can get will depend on your situation and the age of the car you purchase, so shop around and use helpful tools like our car loan calculator to work out what your repayments will be based on the interest rate.

Secured vs unsecured

A secured car loan means you use the car you are purchasing as security, and this generally means you will receive a lower interest rate. If you don’t pay – the lender repossesses the car to recoup any losses. But if you are buying an older car, the lender may think it won’t hold its value, so in this situation, an unsecured loan may be the best car loan for you as you have more flexibility on the type of car you can buy, though the interest rate can be higher.

Novated lease

Could a novated lease be the right car loan option for you? You can lease a new or used vehicle via an arrangement with your employer, a finance company, and yourself, to make pre-tax repayments for the car and its running costs. You could benefit from tax savings by salary packaging your car.

Extra fees

Fees. Another cost you must consider when looking for the best car loan deals. Look out for things like monthly service fees, one-off application or establishment fees, default or missed payment fees, late payment fees, and early payout fees. Though extra fees may seem small, it all adds up.

Who offers the best car loans?

Several different companies offer car finance. You can go to a bank, broker, online lender, novated lease company or, through the car dealership you purchase the car from.

The experienced finance managers at Carz4u will work for you, not the bank, so are in a position to help find you the best possible car finance deal. Plus, the finance managers at Carz4u can have you driving away the very same day in your next car. Using the finance team at a car dealership is a convenient and fast option.

Choose Carz4u – Perth’s used vehicle superstore!

Carz4U has hand-selected a large range of quality used 4WDs, 4x4s, utilities, SUVs, cars, and vans that are ready for immediate delivery. Our finance managers can have you driving away in your next car in no time at all, so enquire about finance at Carz4u today.