What Is a Good Car Finance Rate?

What is a Good Car Finance Rate in 2024?

Australia’s financial landscape is dynamic, and so too are the opportunities for securing competitive car finance rates. Whether you are a seasoned investor, a first-time car buyer, or an astute financial planner, FinanceBeagle aims to provide a comprehensive guide, offering insights, analysis, and expert perspectives that assist you in making informed financial decisions. Interested in knowing what is a good car finance rate, especially in the current market?

Finding a Good Car Finance Rate in 2024

Car finance rates can vary based on several factors, including your credit score, the lender, the loan term, and the type of loan you choose. Living in a post pandemic world, we are seeing considerable shifts within the lending and financial markets, and rates have been going up, and up, and up ever since. In 2024, the world of rates as we know it has changed, which adds a considerable challenge to our everyday lives.

To get the best car finance rate, it’s crucial to have a good credit history, shop around with different lenders, and consider factors such as the loan term and the type of interest rate (fixed or variable). On the back of that, it’s important to know that your ability to make a down payment can also impact the interest rate you’re offered when looking to secure a good interest rate for car loan. Now more than ever, you need to keep in mind that interest rates can change quickly, so it’s advisable to contact FinanceBeagle as soon as possible for the most up-to-date information.

Australia’s Current Interest Rates

As of May 2024, the RBA cash rate hit 4.35% – and in the past year or so, the country’s interest rates have increased a drastic amount. After sitting at 0.1% for more than 12 months, this rise in rates has caused a major shock among a number of Australians, especially those on existing mortgages, or new home buyers who have just stepped foot into the market with a new home.

Dates of Interest Rate Rises

• April 6 2022
• May 4 2022
• July 6 2022
• August 3 2022
• September 7 2022
• October 5 2022
• November 2 2022
• December 7 2022
• February 8 2023
• March 8 2023
• April 5 2023
• May 3 2023
• June 7 2023
• November 8 2023

The Relevance to Car Finance

The RBA cash rates are used by banks and lenders to set their own interest rates. When you decide to take out a loan, your lender is going to give you a personalised rate, generally based on your credit score, borrowing power, and the type of car you’re leaning towards purchasing. As an example, you apply for car financing and the lender offers you $20k, on a 4 year loan. If the RBA is to raise the cash rate by 0.5%, your car loan rate is also going to go up by 0.5% – this is ONLY if you’re on a variable interest rate, and not a fixed rate. A good interest rate for car loan depends on what your broker can find for you, the provider themselves, and which lending solution best suits your lifestyle and your budget.

Reducing your loan term or paying a deposit will decrease your interest amount.

What Should I Consider?

When it comes to securing a loan, there are a few fundamentals you should keep in the back of your head to ensure the loan itself is suitable for you. On the back of purchasing the vehicle itself, this will help you to get your costs as low as possible, and/or pay off your new loan sooner (rather than later. The fundamentals to consider include:

• Low interest rate
• Low or no fees
• Repayment flexibility
• Loan term

Speak to FinanceBeagle for a Good Car Finance Rate!

  Interested in knowing more? Contact us on 1300 225 525 and ask our team personally what is a good car finance rate and we’ll provide more information based on your circumstances. Let’s get you started today! Request a quote through our website or get in touch with a vehicle finance broker via our online form.