Car Loans Perth

Find affordable car loans in Perth and the rest of Western Australia through Savvy.

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 women driving in sunny car

Perfectly placed for both ocean and outback, Perth is a city that offers it all. But whether you’re shuttling kids around the suburbs or looking for rural adventures, life in the City of Light isn’t complete without a set of wheels. If you’re looking for a car loan in Perth or anywhere else in WA, you can explore your options through Savvy. We are partnered with dozens of lenders across Australia and our friendly consultants are on hand to help you every step of the way. Get started with a free quote today!

How do I get a car loan in Perth?

Getting a car loan in Perth is a straightforward process with Savvy. Here’s what you need to do:

  1. Submit your enquiry online: use our simple online form to provide details about yourself and the loan you’re after, including how much you want to borrow, term length, residency and employment status, and credit history. This should only take you a few minutes.
  2. Chat with our team: one of our expert car loan brokers will be in touch to discuss your needs in more details, determine whether you qualify and provide information about next steps to take.
  3. Provide your documents: if you’re eligible for a loan, you’ll need to provide documentation such as ID, proof of address, payslips or bank statements, depending on your circumstances. These can all be submitted online.
  4. Let us find your loan: your Savvy consultant will assess your submission to determine what you can get, working with our panel of lenders to find the best deal available for your situation.
  5. Application submission and approval: if you’re happy with the terms of the loan, your application will be submitted to the lender for approval. You can be approved within 24 hours of submission. Once the documents are signed, we’ll arrange settlement with the seller for your new car. When that's done, you're all set to hit the streets of Perth!

How much will my car loan cost in Perth?

According to the Australian Automobile Association’s Transport Affordability Index report for Q1 2024, Perth residents pay an average of $212.88 a week on their car loans. Prices are similar for other areas of Western Australia, with drivers in Bunbury paying the same amount on average.

However, the actual cost of your loan will depend on a number of factors, including:

  • Car value: the total amount you borrow will typically depend on the price of the car you want to buy.
  • Interest rate: a lower interest rate means lower total interest payments over the course of the loan, reducing the overall cost.
  • Loan term: a longer loan term may result in lower monthly payments – but could lead to higher interest costs overall.
  • Deposit: a larger deposit reduces the amount you need to borrow, resulting in lower monthly payments and potentially lower overall costs.
  • Fees: you may be subject to various fees that can add to the total cost of the loan.

Here’s an example showing how different interest rates for the same $25,000 car over a five-year term can affect monthly and final costs:

Interest rate Monthly repayment Total interest paid Total amount to pay
5%
$471.78
$3,306.85
$28,306.85
6%
$483.32
$3,999.20
$28,999.20
7%
$495.03
$4,701.80
$29,701.80
8%
$506.91
$5,414.59
$30,414.59

What other costs should I consider when buying a car in Perth?

When budgeting for a car, it’s crucial to look beyond the loan and consider all costs involved in owning and running it. These are some of the other costs you will need to cover when you buy a car in Western Australia:

Vehicle licence duty: otherwise known as stamp duty, this is the fee paid when a car’s registration (licence) is transferred to another person. How much you pay is based on the value of the vehicle. In WA, you can use RevenueWA’s vehicle duty calculator to calculate how much you need to pay when buying a car.

Vehicle licence and Motor Injury Insurance (MII): car registration fees in Western Australia can be broken down into three parts:

  1. Licence fee: unlike other states and territories, WA uses the car’s weight in its vehicle licence (registration) fee calculations. As of May 2024, this is set at $26.52 per 100kg for motor cars.
  2. Motor Injury Insurance: MII is made up of two insurance products, Compulsory Third Party (CTP) and Catastrophic Injuries Support (CIS), and covers the driver for injuries they cause to others in a crash.
  3. Recording fee: this is a flat fee to cover administration costs, set at $10.30 as of May 2024.

Fuel: fuel is one of the biggest costs for car owners, making up 22% of weekly transport costs on average, according to the AAA. If you are in Perth, you can find up to date fuel price information here.

Car insurance: car insurance provides financial protection if your car is damaged or stolen. If you take out a car loan, you may be required to have comprehensive car insurance, the highest – and most expensive – level of cover.

Maintenance and repairs: regular maintenance is crucial to keep your car running smoothly and prevent expensive repairs down the road. Factor in the cost of routine servicing and consider a buffer for unexpected repairs that can arise over time.

Types of car finance available in Perth

Why choose Savvy for your car loan?

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

More of your questions about car loans in Perth

How can I get lower interest rates on a car loan in Perth?

There are several ways you could secure lower interest rates on your car loan. The first step is to improve your credit score. Next, comparing competitive offers through Savvy and choosing a secured car loan can help reduce the interest you will pay on your loan.

How else can I improve my chances of qualifying for car finance in Perth?

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.

What's a balloon payment and should I choose to use one?

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. 

Do I have to buy my car from a dealership in WA?

No. You’re not restricted to buying cars from dealerships or cars located in WA. Our lenders can finance cars anywhere in Australia, bought from private sellers or dealers, opening up more options for you to purchase. Keep in mind, however, that there are additional steps involved when buying a car interstate

Are there any government incentives available for electric and low-emission vehicles in Perth?

Yes. WA’s Zero Emission Vehicle Rebate Scheme offers a $3,500 incentive to encourage buying electric and hydrogen fuel cell vehicles. The scheme is open to all WA residents until 10 May 2025. You can find out more information here.

I use my vehicle for business a lot of the time. Is a secured car loan the right product for me?

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.

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