Car Loans Perth
Keep things Savvy and find flexible, affordable car loans in Perth that match the way you live and drive.
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Savvy Editorial TeamFact checked
Low rate car loans Perth
Find your ideal car loan in Perth
With Savvy, you get more choice and that means lower car loan interest rates than anywhere else. If you're considering car loans, Perth based and looking to save dollars – let Australia’s number one car loan brokers help you find the best deal from the widest choice of car loan lenders online. We can help you get approved more quickly, drive the car you want, and make your money go miles further. Be savvy, and don’t let new car costs mount up.
Drive the Savvy way and save money
Getting a great deal on a car is about more than just the price – it's essential to get the best deal available on your finance too. At Savvy, we’ve developed long-term relationships with a myriad of loan providers. Our consultants take the tedium out of sourcing winning finance deals – so you can get on with enjoying your drive. If you’re thinking convenience and peace of mind, and you want to get unrivalled advice too – think Savvy!
The features and benefits of a car loan with Savvy
Low interest rates
By comparing the competitive offers available for your profile through us, you can lock in a great deal and guarantee your low rate across the entirety of your loan term.
Choose your repayment term and schedule
You can choose between loan terms of one and seven years and make your loan contributions on a weekly, monthly or fortnightly basis.
Borrow up to your car’s value
Car loans come with a minimum borrowing amount of $5,000, but you can borrow up 100% of any vehicle’s value (provided you can comfortably afford to do so)
Buy from a dealership or privately
You’re not restricted to solely buying cars from dealerships. Our lenders can finance cars anywhere in Western Australia, bought from private sellers, opening up more options for you to purchase.
Available to different employment types
Whether you’re working full-time, permanent part-time, casual or even as a sole trader, there are car finance options that you can take advantage of.
Early repayment options
We can match you with top lenders who allow you to pay above the minimum monthly requirement and complete your loan term early.
Our range of car loan options to suit all your needs
Looking for a loan to finance a car for personal use? Get started by comparing your options with Savvy and access low interest rates for your car loan.
We’re partnered with flexible lenders who can work with customers who have struggled with their credit in the past. You can speak with a Savvy consultant who understands your situation and can help you through the process.
One of the most popular finance options for WA businesses, chattel mortgages enable you to own your car from the beginning and reap the rewards of numerous tax benefits and flexible repayment options.
If you’re in a position to take up a novated leasing agreement, it might be worth your while to do so. Pay for your lease through salary sacrificing, use it 100% for personal use and enjoy the tax benefits that come with it.
If your business uses off-balance sheet accounting, a hire purchase agreement can be a great way for you to save with claimable GST, depreciation and interest while taking ownership of the car at its conclusion.
Alternatively, you might be looking for the freedom and convenience of not owning your commercial vehicles. Whether you’re looking at finance or operating leases, we can help you source the right lease for your business.
Why you should go with Savvy for your car loan
Australia's Top Lenders
Car Loan Solutions for Everyone
Hassle-free, Quick Application
What our customers say about their finance experience
Savvy is rated 4.8 for customer satisfaction by 3340 customers.
Calculate car loan repayments
Your estimated repayments
$98.62
Total interest paid: | $1233.43 |
Total amount to pay: | $5,143.99 |
Disclaimer: The results provided is an estimate only. Please read our Calculator Assumptions and Disclaimer for more information
A checklist for before you apply for a car loan in Perth
Be aware of your credit history
First and foremost, it’s important that you understand what your credit file looks like and what’s in it. This provides your lender with an indication of how you’ve fared with past borrowing arrangements, as well as provide information on your existing liabilities and current credit limits.
Fortunately, your Savvy consultant will review this for you in the initial application process to determine the type of car loan you can qualify for. They’ll also do this to highlight any potential errors in your file that’ll require correcting.
Check the eligibility criteria
Above all else, though, you should only be applying for a car loan if you know that you meet the eligibility criteria. A large part of this is completed automatically by our smart on-site technology, as it’ll take any lenders who require a higher minimum income than what you earn out of the equation.
In terms of the overall eligibility criteria that you’ll need to account for, the following points apply across the board with car loans.
- Must be 18 years of age or older
- Must be an Australian citizen, permanent resident or living here on an acceptable visa
- Must be earning a stable, consistent income of at least $26,000 annually to support minimum loan payments.
Know your borrowing limits
When it comes to car loan applications, lenders can very quickly and easily tell whether you’re capable of repaying the loan you’re asking for. You can utilise our car loan repayment calculator to determine what your borrowing power is based on your income and expenses.
As a general rule, your loan repayments shouldn’t exceed a quarter of your total monthly income. For example, an applicant earning $30,000 annually would have a monthly income of $2,500, meaning they could feasibly be approved for a car loan which held repayments of approximately $600. This is, of course, dependent on other monthly expenses.
The positive in this scenario is that, rather than being rejected outright, your Savvy broker will calculate your borrowing power and come back to you with an amount that you’re more likely to be approved for before proceeding.
Analyse your comparison rate
While interest rates are one of the most important aspects of a car loan in determining its cost, you should always be aware of the types of fees that you’ll be required to pay on top of these. These additional costs will vary between lenders, but establishment fees can cost up to $600 and ongoing fees can set you back up to $20 per month. However, we work with lenders who are willing to waive either or both of these costs.
There are a few costs that you may incur that aren’t included in your loan’s comparison rate, though. Some lenders will charge fees for paying off your loan ahead of schedule, reaching up to $600 to $900 depending on the time left to run on your loan, but this too is waivable. Additionally, submitting a payment late can result in a dishonour fee of $25 to $50.
Prepare all of your documents
Finally, you should ensure that you have all of the right documents at hand ready to send through to us for your formal application. These will be as follows:
- Photo ID such as your driver’s licence or passport
- Your last two payslips
- Additionally, some lenders may require 90 days’ worth of bank statements
- Any statements relating to income derived from Centrelink
- A completed Savvy application form
Car loans Perth FAQs
Applications are straightforward and carried out entirely online. You'll get asked to provide some documentation, which may include payslips or bank statements, depending on your circumstances. Your lender will also ask for ID and proof of address, like a driving licence and utility bill. Everything gets taken care of as quickly as possible online.
Choosing a secured car loan from Savvy is the first step to gaining access to lower interest rates. That's because your new car provides security against your borrowing.
You can boost your application and gain access to a lower interest rate by showing a lender you’re in strong financial shape. Employment stability and type, your age, and even whether you own a house can all affect lender decisions about interest rates. Not only that, but the higher your credit score, the better the deal you’re likely to get offered – because it demonstrates to your lender that you’ve paid back credit on time in the past.
Another great way to keep down the cost of a car loan is to limit your vehicle search to newer models. Many loan providers prefer cars that have seen fewer years on the road, because they’re more likely to provide security against your borrowing for the full term of your loan. Many people don’t want to buy brand-new because of depreciation, and some estimates say a vehicle loses 20% of its value in the first year, so that can make sense. A good rule of thumb is that cars under three years old get the best car loan interest rates. Cars between three and ten years attract slightly higher rates, and the highest rates get reserved for cars older than that.
Balloon payments, also called residual payments, are a feature of secured car loans designed to reduce regular repayment amounts. Many borrowers opt to include a residual amount at the end of their loan. That means you pay back less throughout the agreement.
When the loan ends, you can either refinance the balloon payment and keep driving, sell your car and pay off the residual, or repay the amount in cash – then buy a new vehicle. Residuals generally get calculated according to how long your loan runs for – and all lenders have their own guidelines. On a five-year loan, that’s around 30%, four years is approximately 40%, with up to 50% available for three-year loan terms.
Zero per cent deals aren't always all they seem to be. It's wise to check out all your options before you commit to long-term car finance, and savings across different products can be huge. Car dealers often hike up the sticker price of a vehicle to cover 0% offers, and there can be substantial hidden fees, and components like balloon payments included too.
If you use your car for business more than half the time, a car loan might not necessarily be the best option for you. A chattel mortgage is a very tax-friendly way to buy for business users. With a chattel mortgage you get increased tax benefits. You can claim back any GST in the purchase price next time you lodge a business activity statement. There’s also no GST on your repayments, which can help with cash flow. The interest portions of repayments are tax-deductible, and you get to claim for depreciation on the vehicle too.