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24 January, 2019, Sydney, Australia – Aussies’ love affair with new cars is coming with an eye-popping price tag, according to new research by Finder, Australia’s most visited comparison site.
Finder analysis of Australian Bureau of Statistics (ABS) data found that $8.1 billion was lent against new cars in the past 12 months.
With the average new car loan interest rate around 6.3% and the average financed car selling for $36,139, Finder estimates $513 million will be paid in car loan interest in 2019.
ABS data shows that in the 12 months to November 2018, there were 1,175,908 new cars sold and 19% had car loans attached to them.
Graham Cooke, Insights Manager at Finder said Aussies are buying a new car every 27 seconds, and taking out a car loan every 2.5 minutes.
“It’s mind-blowing to think that more than $1.4 million in interest is paid back on these new cars every single day. That’s around the same value as 39 new cars,” he said.
Luckily for Australians, motor vehicles have been gradually declining in price when you consider inflation.
ABS inflation data shows that a motor vehicle that would have cost $20,000 in the year 2000 has come down in price by around 16% and would cost around $16,753 in 2018.
“Cars have been gradually getting cheaper, and improvements in technology mean Aussies are getting more bang for their buck.
“If you can’t pay for your ride upfront, a car loan can be a useful tool. Just remember that each optional extra you add will increase the overall price and the amount of interest you pay over time,” he said.
Cooke said a little research can go a long way toward an informed decision.
“Learn about the car loan rates available online before you go to buy and remember that in all financing matters, knowledge is power – use it to improve your personal situation,” he said.
Car loans for a $36,139 vehicle and monthly repayments over 5 years
Car Loan | Interest rate | Loan term | Monthly repayment over 5 years | Total repayment over 5 years |
---|---|---|---|---|
Loans.com.au | From 5.44% fixed | 3 to 5 years | $696.93 | $41,816 |
Beyond Bank Low Rate | From 5.69% fixed | 1 to 7 years | $696.83 | $41,810 |
IMB New Car Loan | From 5.89% fixed | 1 to 7 years | $701.64 | $42,098 |
RACV New Car Loans | From 5.99% fixed | 1 to 7 years | $706.21 | $42,373 |
CUA Secured Fixed Car Loan | From 6.79% fixed | 1 to 7 years | $717.24 | $43,034 |
Source: finder.com.au
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Disclaimer
The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com.au's review pages for the current correct values.
About Finder
Every month 2.6 million unique visitors turn to Finder to save money and time, and to make important life choices. We compare virtually everything from credit cards, phone plans, health insurance, travel deals and much more.
Our free service is 100% independently-owned by three Australians: Fred Schebesta, Frank Restuccia and Jeremy Cabral. Since launching in 2006, Finder has helped Aussies find what they need from 1,800+ brands across 100+ categories.
We continue to expand and launch around the globe, and now have offices in Australia, the United States, the United Kingdom, Canada, Poland and the Philippines. For further information visit www.finder.com.au.
12.6 million average unique monthly audience (June- September 2019), Nielsen Digital Panel