Money Hack: How to get on-road costs included in your car loan
Some lenders will let you add the cost of insurance, rego and even navigation systems into your loan amount.
Cars can be one expensive purchase, which is why car loans are a common way of spreading the expense out over a few years. Trouble is, the sticker price of a car isn't the only thing you pay for when you buy it. Insurance, registration, navigation systems and stamp duty are all extras that you might need to purchase after buying your car. But, did you know some lenders will let you add certain on-road costs like these on to the loan amount?
If you don't want to pay for some of your on-road costs upfront, find a lender that will let you add them into your loan amount. Some car loan lenders will only approve you for the sticker price of your car, but others will let you borrow a certain amount above that (calculated either as a percentage of the price of your car, for example 10%, or simply the value of the on-road costs).
Here are some lenders we found that let you borrow extra for on-road costs.
|Lender||How much you can borrow for on-road costs||What you can borrow for||Find out more|
|Westpac||10% of the car's Redbook value||On-road costs such as insurance, transfer costs and registration||Westpac Car Loan|
|UniBank||Not specified||Navigation systems, insurance, car alarms||UniBank Car Loan|
|Stratton Finance||Not specified||Registration, stamp duty, insurance and sometimes negative equity.||Stratton Finance Car Loan|
Before you employ this hack, remember that increasing your loan amount will increase your repayments, so if you are able to pay these costs upfront you will be better off in the long run.
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