car loan

Car Loans

Car Loans at near Home Loan Rates

You've got your eye on the dream vehicle. The salesman’s got you in his grasp, pen in hand. "Just sign here", he says giving you a personal loan so the vehicle can be yours to drive away in a few days.

What's wrong with this picture?

Nothing's wrong with the car, it’s what is going on with that car loan. Car dealers deserve to make some money on cars they sell. But padding the loan interest rate so they can make as much money off you as possible, is going too far.

What many people don’t realise, is that a car loan or other secured personal loans can most of the time be obtained for a very small margin above the home loan interest rate. That's especially true for a homeowner purchasing a new or late model car.

Sometimes, a dealer or online car loan lender will offer a low interest rate, but in the fine print there will be huge fees or a balloon payment at the end of the loan term. If your loan has a balloon payment, that could mean that you're expected to pay thousands of dollars at the end of your loan term in one lump sum. For most people this is not ideal as they don't have $5,000 spare at the drop of a hat. Here at Grace Loans, we look after your interests. That means we will avoid hidden costs and balloon payments when getting you a car loan.

So what’s the best approach to getting a car loan?

Here are some quick tips on how to get the best deal on that next car or other vehicles you buy:

  • Do your serious shopping near the end of the month. The salesperson is likely to have a monthly quota and will be keen to do a deal to get yours across the line.
  • Get a pre-approval for your vehicle loan - something we can obtain for you. So you can shop with confidence knowing exactly how much you can spend.
  • Have your documents ready to go on your computer (to email); Latest 3 months bank statements, a photo or scan of your drivers licence and 2 recent payslips
  • Make sure you address any liabilities on your application. Credit cards, regular outgoing payments, afterpays all need to be disclosed and you risk being declined for not mentioning them upfront
  • You'll get a lower interest rate on a newer car from a dealer. Be wary of getting to attached to an older/private sale car as it might not qualify.

Here at Grace Loans we're here to walk you through the process, Give us a call and talk to Beth about the best way forward.

Car Loan FAQs

  • How much can I borrow?

    This is different for each person. Because it's all depending on what your income is and what your expenses are. For car loans, you won't be able to borrow more than what the car is worth, and you won't be able to borrow to purchase a car older than 7 years.

  • Green Cars

    Did you know you can get the best interest rates for new cars that appear on our approved 'Green Cars' list? Contact us for the list of currently approved green cars and save 0.7% off your interest rate.

  • Dealer or private sale?

    If you want the best interest rate and the easiest approval you might want to consider a dealer car. You can still apply for loan for a late model car from a private sale, however, expect to pay a little more in interest.

  • Is loan interest tax deductible?

    We would expect that loan interest will be tax-deductible if the vehicle is being used solely for business purposes. It's a good idea to ask your accountant about the best way to go about purchasing a vehicle, if you expect to use it for your business. 
  • What documentation do I need to provide to apply for a loan?

    For PAYG income earners this would be typical:


    • Your last two payslips
    • 3 months of bank statements showing living expenses and income payments 
    • Drivers Licence 
    • The contract or document from the car dealer showing agreed price and all details on the vehicle


    For self-employed borrowers, generally you’ll need to have your ABN for two years, and most lenders want two years of financial reports, tax returns and Notices of Assessment too.

Get started now

That pre-approval is the pace to begin for a personal loan, so call us today on 02 4905 0250 or fill out our online application form.

Grace Loans is a division of Grace Financial Services. James Massey and Bethany Massey are Authorised Credit Representatives of BLSSA Pty Ltd, , Australian Credit Licence number 391237. Authorised Credit Representative nos. GFS: 472092, James: 472093 & Bethany: 513202. Content of site may not be fully up to date as lenders are constantly changing their loans and policies. Any advice provided on this website is of a general nature not taking into account your personal objectives and situation. Such matters are important to consider prior to taking any action. Please make an appointment to discuss your specific situation so that appropriate advice may be given with regard to suitable products using current information.