How to find the best short-term loan to cover car rego and insurance costs.
For many of us, our car is essential to help us get from A to B as quickly as possible. Unfortunately, keeping a car on the road can be an expensive exercise, with registration and insurance two of the biggest annual costs to consider.
If you’ve been hit with an expensive car insurance or rego bill and you don’t have enough money put aside to cover it, you may need a short-term loan to provide the necessary financial assistance. Here’s how to compare your loan options and choose the most suitable solution.
Car registration costs to consider
There are several costs you need to consider when registering your car, including:
- Registration. The cost of car registration varies depending on where you live and the type of car you drive. It generally ranges from $300 up to $600, but will be much more if the cost of compulsory third party (CTP) insurance is automatically included (see below for more details).
- CTP insurance. CTP insurance, also commonly known as green slip insurance, is mandatory for every Australian driver. It covers compensation costs if you kill or injure someone in an accident. In most Australian states CTP insurance is automatically included in vehicle registration costs, but drivers in NSW, Queensland and the ACT can choose their own CTP provider. The cost of CTP insurance varies depending on a range of factors but you can generally expect to pay upwards of $300 for cover.
- Vehicle safety tests. You may also need to have your vehicle tested to ensure that it meets safety requirements before it can be registered.A safety certificate in Queensland costs more than $80, a NSW Vehicle Safety Check (formerly a pink slip) costs $40 and a Safety and Identity Check (formerly a blue slip) costs $64, and a Certificate of Roadworthiness in Victoria will cost $90 or more.
- Bad credit applicants considered
- Fast approval service
- Borrow up to $2,000
100% confidential application
Sunshine Short Term Offer
A short term loan with a fast and easy application available to those with good or bad credit. You can apply today and get approved for up to $2,000.
- Loan amount: $2,000
- Loan term: 9-15 weeks
- Turnaround time: 30 minutes (conditions apply)
- Fees: 20% of borrowed amount + 4% of borrowed amount each month
- Income requirement: 50%+ of income cannot be from Centrelink
- Bad credit borrowers OK
- Quick and easy Approval
- No Credit Checks
Short term loans you can use for car rego & insurance
Car insurance costs to consider
Other than CTP insurance, there are three types of car insurance available in Australia:
- Comprehensive car insurance. Comprehensive car insurance offers the highest level of protection for your vehicle, providing cover against collision damage as well as loss or damage caused by storm, hail, fire, flood, theft, vandalism and more. The cost of cover varies depending on your age, your driving history, the vehicle you drive, where you live and many other factors, but prices range from around $600 up to more than $2,000 per year for younger drivers.
- Third party fire and theft insurance. This type of car insurance covers your legal liability if you cause damage to someone else’s car or property, and it covers your own vehicle if it is lost or damaged due to fire or theft. If you want third party fire and theft insurance, you’re looking at a bill of several hundred dollars.
- Third party property damage insurance. This basic level of car insurance covers your legal liability if you cause damage to someone else’s car or property. It’s the cheapest type of car insurance available but will still set you back several hundred dollars or more.
What is a car rego loan?
A car rego loan is a short-term loan used to help you cover your car rego and insurance bills. With amounts ranging from $100 to $2,000, these loans give you the money you need to keep your car on the road. You can then repay the amount you’ve borrowed over a period of time that typically ranges from a few months up to one year.
Many car rego loans are available from online lenders, which means you can apply and get approved for a loan 100% online. Fast approval is often provided to help borrowers who need cash fast, while there are also many lenders willing to offer loans to customers with bad credit.
How to compare car registration loans
If you need a car rego loan or a car insurance loan, remember to consider the following factors when comparing your loan options:
- Loan fees. The Australian government has capped fees for small short-term loans at the following maximum limits: an establishment fee of no more than 20% of the loan amount and an ongoing monthly fee of no more than 4% of the loan amount. Remember to take the loan fees into account when calculating the total cost of borrowing.
- Loan term. Terms of up to 12 months are typically available for car rego loans. Remember to calculate how the loan term will affect not only your monthly repayment amount but also the total cost of borrowing over the life of the loan.
- Repayment schedule and amount. Many lenders will allow you to choose a repayment schedule that aligns with your income so that you can make weekly, fortnightly or monthly payments whenever you receive your usual paycheque. Take a look at the regular repayment amount that you will need to meet and make sure it’s a figure you can comfortably afford.
- Turnaround time. Some lenders provide loan approval and access to funds within the hour, while the process could take up to two business days with other lenders. If you need fast access to funds to pay an urgent bill, check the lender’s turnaround time before you apply.
- Loan amount. Most car rego and car insurance loans are for amounts of up to $2,000. However, depending on your circumstances, you may be able to access a larger loan of up to $5,000 if required to help you pay essential vehicle costs.
Factors to consider before you apply for a car registration loan
There are a few important issues you need to consider before you apply for a car rego loan:
- What are your options? It’s always a good idea to consider all your payment options before borrowing money. For example, can you pay your rego for a shorter period of time, such as three or six months, rather than forking out to register your vehicle for the full year? If you have comprehensive car insurance, could you reduce your premium by choosing a higher excess or maybe even switching to a lower level of cover?
- Can you afford the loan? If you do decide to borrow, make sure you can afford to repay your debt. Consider the loan amount, the term, the regular repayment amount and the total loan cost before you decide whether a car rego loan is right for you. Be careful not to get in over your head as this could lead you into deeper financial trouble.
- Are bad-credit borrowers accepted? Many car rego loan lenders will accept borrowers with bad credit, but not all will. Ensure that your credit history won’t disqualify you from a loan before you apply.
- Do you meet the eligibility requirements? You’ll also need to check that you meet all the other eligibility requirements that apply, such as:
- You must be at least 18 years of age
- You must be an Australian citizen or permanent resident
- You must have a regular source of income
Other requirements will often need to be met as well, so check with the lender before you apply.
If you need finance to help keep your car on the road, compare your car rego loan options at finder.com.au today.