5 Tips To Securing The Best Car Loan Interest Rates

Sun, Dec 1, 2013

Financial Advice

It can be quite a daunting process for some when shopping around for the best car loan interest rates. Every lender work differently in how they apply their interest rates to each car loan. Some lenders may adjust their rates based on the term of the loan, where other lenders may adjust their interest rates on the age of the car, or the actual information provided in the application. One thing for sure, is that it is not a one policy fits all across the vast range of motor financiers in the market.

We thought we could put together a few tips to help you secure the best car loan interest rates.

Tip 1 – Professional Advice And Assistance

Whilst going from lender to lender may eventually get you a good result, let’s face it, it is not the most enjoyable way to spend your spare time, and you could be saving on your car loan at the expense of your own personal time.

Finance brokers who have multiple lenders can shop for the best car loan for you quite quickly. They will know their lender’s policies and guidelines to help find the best deal for you through their range of lenders, and quite often they can access cheaper car loan interest rates than what those same lenders are offering the general public.

Tip 2 – Protect Your Credit File

It is common that a client may get put into a position where they are lead to believe that they need to formally apply to work out what interest rate would apply to them. A good professional credit assistance provider should be able to determine this without enquiring on your credit file. The more times an enquiry is put on your credit file, the more you are limiting your options and ability to ensure you’ve found the best deal. Try and get it right first time, and this is where a finance broker can add value. Badcreditcarloan.com.au provides a free service to check your credit worthiness without you having to submit a credit file lookup.

Tip 3 – Deposit Or Trade In

If you have equity going into your car loan proposal, whether it is made up from a trade in, or cash deposit, this will lower the risk to the motor financier and with many lenders, this can result in a lower interest rate, or a car loan approval that may have not been granted if your request was to borrow the full amount.

Tip 4 – The Age Of The Car

If the age of the vehicle gets over that 10 year old mark, although there are some car loan providers, options will be very limited and could prevent you from getting the most competitive rates in the market. On the other side, the newer the vehicle, the more options you would have, ideally a brand new car having the widest range of options and the most negotiating power to get the best car loan interest rates.

Tip 5 – Employment Status

The status of your employment can have an effect on how some lenders will assess your car loan and apply their interest rates. There are many restrictions concerning casual employees, as they may not have the same employment rights as a permanent employee, so many lenders will want to see you in your employment for a decent period of time when you are casually employed. Probationary periods can also impact on which lenders may approve your loan, which can have an effect on what interest rates you could achieve.


Kyle Rhys is an automotive enthusiast from Australia. He has studied business and economics at university. Today Kyle spends his time writing about car technology and finance topics. He enjoys the outdoors and hopes to travel around Europe one day.

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