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Buying a new car - Greater Bank

Buying a new car

Whether it’s your first car or you’re tired of relying on your old wheels, buying a new car is a big decision. Here’s how to get your finances sorted, and some tips to consider.

Buying a new car - Greater Bank

Decide how to buy

Let’s face it – there are many, many important decisions involved in buying a new car.

Choosing make, model, paint colour comes first usually, but early on in the process you should start thinking about how you’re going to pay for your wheels, so you don’t fall in love first, and have to make financial decisions based on emotion.

 

Use your savings if you can

Ideally, you’d be able to walk into a car dealership and pay for your new car outright using cash. Paying this way will save you a considerable amount in interest payments, and you’ll have the satisfaction of knowing the car is 100% yours when you drive off the lot.

In reality, saving for what will be one of the larger purchases we are likely to make (after buying a home) can be tough. However, with discipline, focus, the right budgeting knowledge and a savings account that rewards your good habits, it’s definitely possible.

Buy faster with a Personal Loan

Sometimes, even our best intentions when it comes to saving aren’t enough, and we need to finance our new car purchase. Whether you need to take advantage of a bargain price, or your old wheels are on their last legs, getting a New Car Loan can help you get behind the wheel sooner.

Greater Bank Personal Loans offer competitive interest rates with no monthly fees, and are repayable over a maximum loan term of seven years. We also offer free unlimited redraws on your loan, and are able to approve your loan in as little as 24 hours (subject to meeting our lending criteria and the provision of documentary proof).

 

New Car Loan

Interest Rate 4.98 % p.a.
Comparison rate 5.36 %^ p.a.
Secured - Fixed rates for 1-7 years
Don’t wait to get behind the wheel – our fixed rate new car loan offers great value rates, low fees and can be approved in as little as 24 hours*.

Tips when buying

If you’re opting to pay for your new car with a Personal Loan, here are some things to consider before you start hitting the car yards.

Check your credit rating

Especially important if you’ve had a chequered credit history, or you’re a bit of a newbie when it comes to personal finance is knowing your credit rating. You can do this easily through an online credit checking service, and knowing your score may just let you avoid any unpleasant surprises when you find the car of your dreams.

Your credit report will outline the last seven years of your credit history, including your past applications for credit, any bankruptcies or overdue accounts you may have had during this time.

Learn how to boost your Credit Score

Some help when negotiating

If you’ve found the perfect car but think you may be able to get a better deal elsewhere, don’t hesitate to negotiate with dealers, and be patient. It’s your right as a customer to walk away – don’t feel pressured, and be sure to take some time to think if you need it.

After all, if you’re buying with a Personal Loan, and can negotiate a better deal, this means a lower loan amount, and less interest you’ll need to pay in the long run.

Calculate your Personal Loan Repayments

On-road costs

As well as budgeting for the cost of your actual vehicle, it’s important you factor in the ‘on-road’ costs associated with buying your new car. These are costs which you’ll need to incur to make sure your car can be legally driven.

Of course, you’ll need to register your new car, but on top of this, you’ll need to budget for:

Stamp Duty

A percentage of the purchase price of your vehicle that goes to the government.

Green Slip

CTP or Compulsory Third Party personal injury insurance (applicable in NSW).

New Car Costs

You’ll also be up for number plates and dealer delivery.

Getting the right cover

Your CTP is one thing – in NSW you won’t be able to drive off the lot without this in place. However, the level of Motor Insurance you opt for is up to you.

Given that you’re entering into one of the largest purchases you’ll ever make, you may want to consider a level of cover to suit your needs and budget to protect your asset.

After all, no matter how good a driver you are, it’s impossible to predict what may happen once you’re out on the road.

Get a quote Motor Insurance

Compare our Personal Loans

Compare 3 products
Secured Personal Loan
Our fixed rate personal loans let you stay in control with fixed repayments for the life of the loan. Great for purchasing used cars, renovating a buying that new caravan or boat for a holiday.
New Car Loan
Don’t wait to get behind the wheel – our fixed rate new car loan offers great value rates, low fees and can be approved in as little as 24 hours*.
Unsecured Personal Loan
Need access to funds but don’t have security to offer? We’ve got you. We can lend up to $50,000 for any worthwhile personal purpose.
Interest rate 5.99 % p.a.
Comparison rate 6.37 %^ p.a.
Secured - Fixed rates for 1-7 years
Interest Rate 4.98 % p.a.
Comparison rate 5.36 %^ p.a.
Secured - Fixed rates for 1-7 years
Interest rate 8.95 % p.a.
Comparison rate 9.34 %^ p.a.
Unsecured - Fixed rates for 1-5 years
Key Features
We lend up to 120% of the value of car, caravan, boat, motorbike, term investment.
Competitive fixed interest rate which lets you stay in control with repayments.
Get pre-approved so you can shop with confidence or start planning your project.
Key Features
We lend up to 120% of the value of your new car.
Competitive fixed interest rate which lets you stay in control with repayments.
No monthly or annual fees.
Get approved in advance so you can shop for cars with confidence.
Key Features
Available for any worthwhile personal purchase. This could be a car, boat, holiday, renovation project or consolidating your debt obligations.
When borrowing, you don’t have to offer collateral as security for the loan. This means you pay a slightly higher interest rate than our Secured Personal Loan.
Maximum loan term
7 years
Maximum Loan Amount
$100,000
Minimum loan amount
$5,000
Additional repayments
Access to redraw
Available if self employed
Establishment fee
$275
Annual fee
Maximum Loan Term
7 years
Maximum loan amount
$100,000
Minimum loan amount
$5,000
Additional repayments
Access to redraw
Available if self employed
Establishment fee
$275
Annual fee
Maximum loan term
5 years
Maximum loan amount
$50,000
Minimum loan amount
$5,000
Additional repayments
Access to redraw
Available if self employed
Establishment fee
$275
Annual fee
Apply now Secured Personal Loan Apply now New Car Loan Apply now Unsecured Personal Loan

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