Cheaper cars but don’t be complacent about finance costs

car finance calculator

Your new car could be costing you a whole lot more than you realize.

Comparison website Finder has been looking at the true costs of car finance and the differences between the different financing options available.

Australian Bureau of Statistics (ABS) data found $8.1 billion was lent against new cars in the past 12 months.

With the average new car loan interest rate around 6.3% and the average financed car selling for $36,139, Finder estimates $513 million will be paid in car loan interest in 2019.

Aussies are buying a new car every 27 second and taking out a car loan every 2.5 minutes.

But the good news for car buyers is that cars are actually becoming cheaper.

ABS inflation data shows that a motor vehicle that would have cost $20,000 in the year 2000 has come down in price by around 16% and would cost around $16,753 in 2018.

But remember, despite the increased affordability of new cars in Australia, researching your financing options before heading into a dealership is always a good idea.

The difference could be thousands of dollars over the course of your car loan.

In the market for a new car? Check out the latest Australian car reviews at car Review Central.

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