Car finance: what to check before choosing your next vehicle
Set a purchase budget before comparing repayments
Start with the vehicle price and the cash you want to retain after the purchase. Add registration, insurance, servicing and expected running costs to your budget. For a used car, allow room for an inspection and early maintenance rather than committing every available dollar to the purchase.
Compare agreements on the same basis
Ask for the interest rate, fees, term, repayment schedule and total amount payable. Compare quotes using the same vehicle price, deposit and term where possible. A low monthly figure can conceal a longer commitment or a substantial final payment.
Check the vehicle and seller
Have the make, model, year, kilometres and seller details ready. Ask what ownership, existing-security and valuation checks the provider requires, especially for a private purchase. Keep the vehicle inspection separate from the finance decision: an available loan does not establish that the car is a sound purchase.
Personal or business use?
Tell the finance professional how the vehicle will actually be used. If it is partly for work, describe that rather than assuming the arrangement or tax treatment. Ask your accountant about tax questions before relying on a deduction.
Useful questions for the next conversation
Ask whether there are early repayment costs, what happens if you sell the car, and how any balloon would be settled. Keep a copy of the quote and compare the full cost with your budget before deciding.
Explore the next step
Vehicle finance information · Repayment calculator
Enquire About This PurchaseFurther reading: ASIC Moneysmart: comparing car loans and personal loans. For business purchases, see business vehicle and equipment finance. Provider examples do not indicate a lender-panel relationship.