Car Loans Hobart

Find the right car loan for your needs in Hobart and elsewhere in Tasmania by applying through Savvy today.

Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
Our authors
, updated on May 22nd, 2024       

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Happy man and woman driving in car

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?

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

How to compare different car loan offers with Savvy

Common questions about car loans in Hobart

Do my lender and car have to be in Hobart to get approved for finance?

No. You can finance a new or used car in Hobart, elsewhere in Tasmania or anywhere in Australia. The process is 100% online, so you won’t need to worry about restricting yourself to a lender in your state or a model being sold nearby. Likewise, you can buy a car from another state or territory – but be aware of the additional steps involved when buying a car interstate.

Can I count multiple income streams as part of my car finance application?

Yes – as long as they’re consistent and able to be relied upon throughout your repayment term, you can count full-time, part-time, casual and self-employed income towards your application. You can also include certain fixed Centrelink payments, such as aged and disability pensions and carer payments. Speak with your consultant about your options if you’re unsure of whether your income can be included in your application.

Which documents will I need for my car loan application?

As part of your application, you’ll be required to submit the following:

  • Your two most recent payslips
  • Your driver’s licence, front and back
  • Your Savvy application form
  • Your signed consent form and credit guide
  • 90 days of bank statements (may be required)
  • Information about your assets, liabilities, expenses and the car you’re buying
Do I have to buy a new car with a car loan?

No. You can buy both used and new vehicles with a car loan. However, lenders typically set age limits for second-hand cars, so it’s essential to check in advance if you’re considering used cars.

Can I get a car loan with bad credit?

Yes. Some lenders will look at bad credit car loan applications, but you’ll likely pay a higher interest rate. We partner with flexible lenders who look past your credit score and assess your ability to pay your loan in the here and now.

Can I pay off my car loan early in Hobart?

You can usually pay off your car loan early in Hobart. However, some lenders may charge prepayment penalties or fees for early repayment. It's important to check the terms of your loan agreement or consult with your lender to understand any potential costs associated with early repayment.

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