How to get the finance you need for your new Mazda.
Has the old car you’ve had since you were 16 finally died? Or maybe you’re just ready for an upgrade? Whatever the case, if you’re considering purchasing a Mazda, it’s important to think about your finance options.
This guide will take you through what you need to think about when it comes to financing a Mazda and what your options are.
Mazda models available in Australia
There are nine new Mazda models currently available for purchase in Australia, including hatchbacks, sedans, SUVs and a sportscar. These are:
- Mazda 2
- Mazda 3
- Mazda 6
- Mazda CX-3
- Mazda CX-5
- Mazda CX-8
- Mazda CX-9
- Mazda MX-5
- Mazda BT-50
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How much does it cost to buy a Mazda?
According to Redbook, the purchase prices of popular 2019 Mazda models are as follows:
- Mazda 2 Neo DJ Auto: $17,320
- Mazda 3 Maxx Sport BN Auto: $24,490
- Mazda 6 6 Sport GL Auto: $33,490
- Mazda CX-3 Maxx Sport DK Auto: $26,200
- Mazda CX-5 Maxx KF Auto: $32,380
- Mazda CX-8 Sport KG Auto: $42,490
- Mazda MX-5 ND Auto: $36,890
Other costs to consider
- Servicing and repairs. All cars require ongoing servicing and maintenance to ensure they stay in good working condition. You'll also need to pay for any unexpected repairs for your vehicle.
- Registration and insurance. You'll need to purchase compulsory third party (CTP) insurance and register your car in order to use it in Australia. There are also a number of optional insurance products to help protect you against theft, fire, accidents and any other damage. The cost of optional insurance will vary based on your specific plan, as well as your driving history, age and gender.
- Stamp duty. The duty you pay when purchasing a car will differ based on your state or territory. You can use our stamp duty calculator to see how much you'll pay.
- New car extras. If you plan on getting add-ons such as leather seats or parking sensors, you should factor the cost into your budget.
- Fuel. Your fuel usage will be determined by the amount you use you car, as well as the fuel efficiency of the model you choose. The ATO classifies a fuel-efficient car as one with a fuel consumption of less than 7L/100km, meaning all current Mazda models can be considered fuel-efficient according to this guideline.
- Cost of finance. If you take out a car loan or use another form of finance to help purchase your Mazda, you should consider the cost of the loan as part of your overall costs. See below for more information on your financing options.
What type of finance options are available?
You have a number of finance options available when it comes to getting a new car. These include:
- Secured car loan. A secured car loan requires you to use the car as security against the loan. You'll generally receive a lower rate than on a normal loan, but the lender may take ownership of the vehicle in the event you don't repay your loan.
- Unsecured loan. If you don't wish to use the vehicle as security, you can opt for an unsecured loan to finance your car. These loans usually have higher interest rates than secured loans and may have lower maximum loan amounts.
- Novated lease. This involves an agreement between you, your employer and a third-party financier where you pay for your vehicle out of your pre-tax salary. Your employer will be responsible for making the repayments to the lender directly from your salary, allowing you to reduce your taxable income.
- Commercial hire. This involves you renting the car and having the benefits of ownership without actually owning the car. This can be a good option for business owners and people who want the car but don't want to own it outright.
- Chattel mortgage. This is a business finance option where a lender loans money to the business for the car and then puts a mortgage on the car, which is repaid over the term of the loan.
- Dealer finance. Many large carmakers such as Mazda also offer car finance through their dealers. Most dealer finance options require you to make a lump-sum balloon payment at the end of the loan term.
Things to consider before financing a Mazda
Here are a few things to consider before deciding to finance a Mazda.
- Fees. Make sure you’re aware of all of the fees you may have to pay before applying for a loan. This can include upfront fees, such as application and establishment fees, or ongoing fees such as monthly or annual fees.
- Loan term. Figure out realistically how quickly you can afford to pay off your loan and find a loan term that meets this.
- Interest rates. Compare interest rates to find the lowest and best rate for you. This is a crucial detail to look at as this impacts your repayments and the overall cost of your loan.
- Comparison rate. The comparison rate factors in any additional fees or charges to give you the true cost of the loan. It's always worth finding out the comparison rate when looking at a range of loans.
- The amount you want to borrow. Different lenders will have different loan amounts they'll be willing to lend. Make sure you find a loan product that meets your borrowing needs.
What you will need to apply for a loan
Eligibility criteria and application requirements differ between lenders, but you'll generally need to meet the following criteria to be eligible for a loan:
- Be 18 years of age or over
- Be an Australian citizen or permanent resident
- Have a steady income that allows you to afford the repayments
- Be employed in some capacity (some lenders will accept Centrelink applicants)