Family buying a new Ford

Ford finance options

Ford Financing Options: What you need to know before driving away

Having been in Australia since 1925, Ford has become an Australian car icon. With such strong Aussie roots, it’s a popular choice for families, individuals and people running their own businesses. Ford has a range of small cars, sedans, SUVs and commercial vehicles to choose from. However, before you get too excited about buying a Ford, ensure your finances are in order.

What types of finance options are there for your Ford?

There are many finance options to choose from, including:

  • Car loan. If you’re buying a new Ford or even a used Ford model under a certain age, the vehicle may be eligible to be financed by a car loan. The car will be used as security and you’ll be funded however much the vehicle costs to purchase. Rates are fixed or variable and are competitive, usually 5-10% p.a.
  • Personal loan. This loan option can be unsecured, which means that the lender doesn’t take any security over the vehicle you wish to buy. However, this means that the rate can be higher as there’s more risk for the lender. A personal loan can also be secured which will lower the rate. Rates start from 8-16% p.a. for unsecured personal loans and 5-10% p.a. for a secured personal loan
  • Commercial hire purchase. This is an option for businesses who hire a car from the financier for a fixed payment monthly over a term that is agreed to. You have the option of purchasing the car at the end of your loan term. You can choose from a range of commercial vehicles through Ford, which include the Ford Ranger or the Ford Transit and you have the option of customising the Ford Transit.
  • Novated lease. If you want to take advantage of tax benefits when financing your vehicle but the car is for personal use, you can consider a novated lease. It’s an arrangement between you, your employer and a financier and allows you to pay for the vehicle out of your pre-tax income.
  • Ford Finance. Ford offers financing that can be done on the spot through the company. This is an option available at the dealership or through its website. You can use a personal loan that offers balloon payments or a business loan that offers a variety of options within it.

Loans you can use to finance a Ford

Rates last updated February 22nd, 2018
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Monthly Service Fee Application Fee Product Description Monthly Repayment
IMB New Car Loan
From 5.99% (fixed)
6.34%
$2,000
1 to 7 years
$0
$250
Borrow up to $75,000 for a new car up to two years old. Competitive 5.99% p.a. rate available to all approved applicants.
Beyond Bank Low Rate Car Loan
From 5.69% (fixed)
5.97%
$25,000
1 to 7 years
$0
$175
A great rate for cars under 2 years old.
Stratton Finance New Car Loan
From 5.49% (fixed)
6.62%
$18,000
1 to 10 years
$7
$499
Benefit from a car broker with over 25 years experience
bcu Special Car Loan
5.9% (variable)
6.82%
$5,000
1 to 5 years
$8
$250
Benefit from a competitive rate when you take out a bcu Access Account.
RACV New Car Loans
From 6.49% (fixed)
7.03%
$15,000
1 to 7 years
$0
$380
A competitive rate car loan from RACV with no monthly fees and 5-hour loan approval.
NRMA New Car Loan
From 6.49% (fixed)
7.03%
$15,000
1 to 7 years
$0
$380
Purchase a new car with an NRMA Car Loan with a fixed rate term and no monthly fees. Pre-approval available within 5 business hours.
Latitude Car Loan
From 6.99% (fixed)
8.1%
$5,000
1 to 7 years
$10
$295
A secured loan with a competitive rate that can help you finance a range of new or used vehicles.
Heritage Bank Car Loan
From 8.99% (fixed)
9.62%
$5,000
1 to 7 years
$5
$200
Apply for up to $100,000 to finance a new or used car at a competitive fixed rate.
IMB Secured Personal Loan
From 6.89% (fixed)
7.24%
$2,000
1 to 5 years
$0
$250
All approved applicants can access this competitive rate and use the loan to finance a range of purposes. Loan amounts up to $60,000 available.
RACV Personal Loan
From 7.49% (fixed)
8.04%
$5,000
1 to 7 years
$0
$380
Take advantage of a competitive rate by securing an asset to this loan. Use the funds for any purpose.
MyState Secured Personal Loan
From 7.99% (variable)
8.96%
$10,000
1 to 10 years
$10
$200
Apply for a loan up to $75,000 and benefit from loan terms up to 10 years. Your choice between secured or unsecured.
Latitude Personal Loan (Secured)
From 12.99% (fixed)
14.2%
$3,000
2 to 7 years
$13
$250 (Loans under $4000 - $140)
Benefit from a tailored fixed rate with a loan that can be used for any purpose.
AutoCarLoans
From 5.16% (fixed)
6.64%
$15,000
1 to 7 years
$5
$381.80
AutoCarLoans can match you with a lender from its panel with rates starting from 5.16% p.a. Suitable for vehicles up to 2 years old.
Westpac Car Loan
From 8.49% (fixed)
9.67%
$10,000
1 to 7 years
$12
$250
Finance a new or used car and benefit from great features for car buyers including a car search tool and the option to borrow extra for on-road costs.

Compare up to 4 providers

What should you consider when choosing finance?

There are several factors to take into account when seeing what finance is available to you:

  • Can I afford the repayments? Using a car loan repayment calculator can help you work out how much the repayments will be for each finance option and whether you can afford it. Remember, with finance that requires a balloon payment, calculate how much you need to save each month to pay that off at the end of the term.
  • Do you want to own the vehicle? Not all financing options let you own the car from the outset. These options give you other benefits but it’s important to consider when picking the loan that’s right for you.
  • How long do you want to keep the Ford? If you like new cars and usually get one every few years, some of the lease options give you the option of a new car at the end of the loan term. This may be an alternative to consider rather than purchasing a new car outright at the end of each term.

What should you ask yourself before you finance a Ford?

Before you finance your dream car, there are some things to consider, which include:

  • What’s my budget? Setting yourself a budget can stop you from exceeding it at the dealership. The Ford Focus starts from a low $22,150 whereas, if you want the Ford Escape, it can cost you from $28,000 to $48,000. This all depends on the features you want, but knowing what you can afford as a baseline can help you narrow down your new car search later.
  • What kind of car do I want? You can choose from small car such as the Ford Fiesta, or sedans and SUVs like the Escape. Ford also offers a range of commercial vehicles such as the Transit which can be customised to suit your business needs. Ensure you choose a car that suits your current lifestyle and not the lifestyle you wish you had. If you know you’re going to be in the city, maybe a smaller car is ideal for you, even though your heart is calling for you to get an SUV.
  • What kind of features do I want? Ford prides itself on its SYNC connectivity technology which is standard across many models. This feature allows drivers to stay connected to their digital lives without compromising their driving. There’s also the rear-view camera, reverse parking camera and option for a sport option depending on what model you’re choosing. Decide what features you want before getting blindsided by all the options.

What are the extra costs?

Some additional costs for you to consider before applying for a loan are:

  • Loan fees. You need to consider upfront fees such as application and establishment fees as well as ongoing fees that can include monthly or annual fees. Looking at the comparison rate can give you an idea of these fees plus the interest rate.
  • Upkeep of the car. Paying for fuel, servicing, new tyres and running your car can be expensive. There’s also the cost of car washing to be considered. If you do it yourself, you must buy supplies. If you go to a car wash, it can cost you upwards of $20 a pop. Factoring these costs into your monthly cash flow is a clever idea, to figure out whether you can afford the upkeep of a car before purchasing one.
  • Registration and insurance. Now that you’re on the road, you must pay to be on the road. This is the cost of registration. You’ll also want to look at insurance, as other cars might hit your new car or you might hit them. Insurance will reduce an out-of-pocket cost later.

What you will need to apply for a loan

You’ll need the following to apply for a car loan:

  • Financial statements. You must be able to show your income, which may require your payslips or bank statements, or if you’re self-employed you’ll need your tax returns. You’ll also have to detail your assets and debts.
  • Identification. Requirements differ between lenders but you may need your driver’s licence, passport or Medicare card.
  • Assets and liabilities. You must show your current assets and liabilities situation to your lender before getting approved for a loan.

Now that you know everything you need to get a brand new Ford, choose your favourite. Our favourite is the Ford Focus – what a classic. Make sure you choose the best financing option for your circumstances before deciding to get on the road in your new car.

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Related Posts

Car Loan Offers

Important Information*
IMB New Car Loan

Borrow up to $75,000 for a new car up to two years old. Competitive 5.99% p.a. rate available to all approved applicants.

Beyond Bank Low Rate Car Loan "Special Offer"

A great rate for cars under 2 years old.

RACV New Car Loans

A competitive rate car loan from RACV with no monthly fees and 5-hour loan approval.

Heritage Bank Car Loan

Apply for up to $100,000 to finance a new or used car at a competitive fixed rate.

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