Car Loans Hobart
Find the right car loan for your needs in Hobart and elsewhere in Tasmania by applying through Savvy today.
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If you’re looking for a new car in Hobart or anywhere else in Australia’s smallest state, it’s important to do your due diligence to find the best available finance options. Savvy can help you do just that. Our dedicated consultants work with leading lenders across Australia to give you more choice when it comes to your car loan and will support you throughout the process. Get started with a no-obligation quote today!
How can I get a car loan in Hobart?
There are several steps involved in getting a car loan. You will need to:
- Establish your budget: before you start, it’s important to understand how much you can afford to spend on a car and comfortably repay each month.
- Find a lender: there are a number of lending options out there, including banks, credit unions, online lenders and dealerships. Weigh up factors like interest rates, loan terms and fees to find the best deal for you.
- Submit your application: you will need to provide personal information and supporting documentation to your chosen lender to allow them to assess your eligibility for the loan.
- Get approved: the lender will review your information and assess your creditworthiness. If you meet the lender's eligibility criteria and your application is approved, you'll receive a loan offer.
Tasmania residents have plenty of car finance options available, but if you want to simplify the process, Savvy is here to help. By applying for a car loan through us, you’ll have the backing of a team of dedicated car loan brokers who have decades of combined experience in the industry. Your dedicated consultant will guide you every step of the way, from your initial application to preparing your formal submission to your lender for approval. So, when you’re ready, just give us a call or get a quick quote online and one of our car finance experts will get in touch.
How much can I borrow for a car loan in Hobart?
The amount you can borrow for a car loan depends on several factors, including:
- Income and expenses: lenders will assess your income as well as your financial obligations and living expenses to determine how much you can afford to borrow.
- Credit history: your credit history and credit score play a significant role in determining the amount you can borrow and the interest rate you qualify for. A higher credit score indicates lower credit risk, which may allow you to borrow more money at a lower interest rate.
- Loan term: the length of the loan term can impact the amount you can borrow. Longer loan terms typically result in lower monthly payments but typically cost more in total due to the amount of interest you pay.
- Car value: most car loans are secured, meaning the vehicle acts as collateral. Lenders are unlikely to approve a loan for more than the car’s value.
- Lender requirements: each lender has its own eligibility criteria and may have minimum and maximum loan amounts.
To get an estimate of how much you could borrow, you can use our online car loan calculator below or speak to a Savvy consultant for a free quote without affecting your credit rating.
What other costs do I need to consider when buying a car in Hobart?
Buying a car can be an expensive venture – on average, Tasmanians pay $208.75 weekly for their car loan alone according to the Australian Automobile Association’s Q1 2024 Transport Affordability Index report. But that’s not the only cost to consider. When buying a car, you should also factor in the following:
Motor vehicle duty: you must pay motor vehicle duty in Tasmania when you register a car or transfer ownership. You can calculate your motor vehicle transfer duty here.
Registration: all vehicles used or parked on public streets in Tasmania must be registered in the state. Registration fees include fire and road safety levies, motor tax and compulsory third party (CTP) insurance – but not inspection costs or transfer fees.
Car insurance: car insurance provides financial protection in the case you are involved in an accident or your car is stolen. If you have a car loan, you may be required to take out comprehensive car insurance, the highest level of cover.
Fuel: fuel is a major expense for all car owners. Hobart residents pay an average of $98.17 per week on fuel and those in regional Tasmania pay even more – $121.08 a week according to the AAA.
Maintenance and repairs: servicing, ongoing maintenance and repair costs to keep your car in good condition all need to be budgeted for.
Here’s an example of how the costs could add up for a car owner in Hobart who has taken out a five-year loan for $30,000 with an 8% interest rate:
| Expense | Annual cost |
|---|---|
|
Loan repayments (including interest) |
$7,299.48 |
|
Registration |
$599.59 |
|
Fuel |
$5,104.84 |
|
Car insurance |
$1,200 |
|
Service & maintenance |
$1,700 |
|
|
Total annual cost: $15,903.91 |
Types of car finance available in Hobart
Why apply for your car loan with Savvy?
Drive away in as little as 48 hours
The application process is fast and convenient with Savvy, with our online processes helping you sign off before you know it.
Trusted panel of Australian lenders
We’re partnered with a wide variety of financiers to help you find the most affordable and suitable car loan for your needs.
Guidance from experienced consultants
You won’t have to worry about going it alone. Your dedicated car finance consultant will be with you from application to settlement.
What our customers say about their finance experience
Savvy is rated 4.9 for customer satisfaction by 3546 customers.
Calculate car loan repayments
Disclaimer: The results provided is an estimate only. Please read our Calculator Assumptions and Disclaimer for more information
How to compare different car loan offers with Savvy
Interest rates
The simplest (and one of the most important) areas to compare, you should always strive for as low an interest rate as possible on your car loan. For instance, using Savvy’s car loan repayment calculator, you can see that while a $30,000, five-year car loan at 7.5% p.a. would cost just over $6,000 in interest alone, opting for a loan at a rate of 6.75% p.a. instead would save you over $600. Your consultant will compare offers to find the lowest rate available.
Fees
In addition to interest, you’ll also need to keep an eye on the fees which may be charged as part of your loan agreement. Although they may not seem costly initially, fees have the potential to build over time, so your consultant will also look for the most affordable fees for your situation. The main fees to consider are:
- Establishment fee: up to $600
- Ongoing fees: up to $20 per month
- Early repayment fee: depends on the size of loan and term remaining
- Late repayment fees: up to $50
Term lengths
While car loans generally range from one to seven years in length, not all lenders will offer the full suite of options. For instance, some may only offer a maximum term of five years. However, your consultant will keep your preferences front of mind during this process, so they’ll only consider loans which meet your term preferences wherever they’re available.
Minimum loan sizes
Car finance lenders can also have different requirements when it comes to the minimum available loan size. For instance, while some lenders can approve loans as small as $2,000, others may set this at a required $10,000 loan to accept your application. In the same way as term lengths, your finance consultant won’t worry about lenders who can’t support your preferred loan size.
Eligibility requirements
Qualification criteria will also vary slightly between financiers, but you won’t have to worry about checking this yourself, as your consultant will ensure that you meet the requirements of your chosen lender. Some of these criteria can include:
- You must be at least 18 years old
- You must be an Australian citizen or permanent resident
- You must be earning a stable income (typically at least $20,000 to $26,000)
- You mustn’t have any issues, such as bankruptcies or Part 9 debt agreements, on your credit file (though solutions exist for those with bad credit)
Vehicle requirements
As well as applicant eligibility, the car you buy will also be subject to certain criteria. These will differ between lenders, so your consultant will find the lender most suited to your car. The main factor which lenders will look to when assessing your vehicle is its age, with maximum age limits ranging from ten years to as many as 25 or more. Its condition and repair history, as well as the requirement to be manufactured here or imported by its manufacturer, will also be considered.
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