Who Provides Car Finance in Australia?

There are several different ways you can borrow funds to purchase a new car in Australia. While most people think of banks as the most likely place to get a loan, they are by no means, your only option. If you want to save money on your car finance, it's very important to shop around widely and compare all the different lenders. This a brief guide to car financiers in Australia.

Most dealerships finance the cars they sell

When you buy a new or used car at a car yard, most times it will be possible to finance the purchase directly through the dealership. Major car dealers will usually have a finance lending service included in their business, where you can apply and be approved for a loan when you purchase the car.

You should be wary of financing through a dealership, however. This is generally not the best value option, and many dealers try to hook people into finance deals on impulse, without taking the time to consider their other options.

All major banks offer loans and car finance

Of course, banks are still a major source of car finance in Australia. The big banks all offer standard car loans and other types of vehicle finance. There is generally not a whole lot of variation between the finance products offered by the major banks. While it's possible to get cheaper rates from different lenders, many people prefer the security and peace of mind of financing through a large and trusted institution.

Smaller lending agencies provide niche car finance

There are a wide range of smaller and specialised lending agencies that offer car finance, generally to targeted and niche markets. A lending agency might specialise in vintage cars, for example, or finance for women drivers, and offer their customers are greater level of expertise and personalised service. These lenders will often provide finance at cheaper rates than the banks, but this is not always the case.

You should always consult a good finance broker to help you negotiate with lenders and secure the best deal on your car loan.