When you think of financing a vehicle, you might immediately think of financing or a car loan.
But the truth is, for some, these options may not be availableâ¦ this is where a personal loan can amount to the plate (number).
According to recent industry data, the used car market continues to grow as supply issues around new car microchips continue.
“As some people are forced to consider buying a used car because the shortage of microchips is slowing the supply of new cars, the used car lending market is booming,” said the Mozo spokesperson Tom Godfrey.
“If the car you’re trying to buy has a lot of ks on the clock, you might find some car loan providers unwilling to finance it, then a personal loan can come in handy.”
In fact, the latest research from Mozo has shown that 52% of Australians who took out a personal loan in the past 10 years used the funds to buy a car. He revealed that the average amount for auto loans was $ 25,000, while for personal loans it was less than $ 14,000.
So what is the auto market like right now?
Recent figures from the Federal Chamber of Automotive Industries show that 890,790 new cars have been sold in Australia since January this year.
âWith car sales remaining stable, demand for auto loans and personal loans also continues. But as with all personal finance products, it pays to compare loans to make sure you get home with a good deal, âsays Godfrey.
According to the Australian Bureau of Statistics (ABS), car loan commitments rose 1.9% in September 2021 (seasonally adjusted). That’s an increase of $ 1.1 billion.
âWhile you can use a car loan or a personal loan to finance the purchase of a vehicle, it’s important to understand the differences between the types of loans,â says Godfrey.
âYour credit history, whether you are looking to buy a new or used car, and the flexibility you want with your finances, can all affect the type of loan you need. ”
Currently, in the Mozo database, the average interest rate for new car loans is 5.95% per year while the average rate for used cars is higher 6.57% per year Meanwhile, the average interest rate for multipurpose personal loans on the Mozo database is 7.59% pa and for unsecured personal loans, it is 9.54% per year
Where can I get the best personal loan to finance my next vehicle?
Ask the experts!
For the 2022 Mozo Experts Choice Awards, Mozo judges compared 338 personal loans issued by 82 Australian financial institutions.
This year, People’s Choice received the Personal Loan Provider of the Year award for winning awards in the Unsecured Personal Loans and Auto Loans categories.
For the full list of top personal loans, auto loans, and lines of credit winners, visit the 2022 Mozo Experts Choice Award for Personal Loans.
Want to start comparing personal loans now? Check Out These Best Deals Below!
* DISCLAIMER: The Comparison Rate combines the interest rate, fees, and charges of the lender into one rate to show the true cost of a personal loan. The comparison rates displayed are calculated on the basis of a loan of $ 30,000 for a term of 5 years or a loan of $ 10,000 for a term of 3 years as indicated, on the basis of monthly repayments. principal and interest, on a secured basis for secured loans and on an unsecured basis for unsecured loans. This comparison rate applies only to the example (s) given. Different amounts and terms will result in different comparison rates. Costs such as redemption or prepayment charges, and cost savings such as fee waivers, are not included in the comparison rate but may inuence the cost of the loan.
^ See information on the Mozo Experts Choice Personal Loan Awards
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