How to play the car finance game

Buying a car can be a trap for the unwary. Although car buyers usually undertake significant research to ensure they get the right model to best suit their needs, they don’t always put as much effort into securing the right finance. This is a mistake. You need to dig below the surface when it comes to car finance.
Don’t rush into it. After negotiating the purchase, don’t relax. At a dealer, you will be offered a range of after-market products and accessories as well as finance. New car dealers can make a significant portion of their income through selling shortfall insurance, consumer credit insurance, paint protection and finance.
NRMA car loans offer the security of finance, but with a more flexible product so you can save money before you sign on the dotted line with a dealer.
Some buyers start off applying for a loan with NRMA but after they choose a car they can end up with dealer finance without understanding the fine print.
The NRMA Car Loan Satisfaction Guarantee allows car buyers to take the loan but still have the ability to withdraw at no cost if they find a better deal within three weeks. They just pay back the amount borrowed and all fees and interest charges are waived.
Buyers of private second-hand cars should check the Personal Property Security Register to ensure the car doesn’t have finance applying to it. If the old loan hasn’t been settled then ’your’ car may be considered collateral for that loan. NRMA will ensure that if a loan exists, the financier is paid out. We do that before your loan settles.

Car loan tips and traps

  • Take your time
  • Shop around. Costs can vary considerably between different finance providers
  • Apply the same diligence researching the finance as you do to finding the car
  • Check what the repayments will be
  • Don’t look at just the rate – check all fees, charges and add-ons
  • Check all the cost of all add-ons, including consumer credit insurance and shortfall (gap) insurance
  • Be aware that if you sign on for finance and the car sale doesn’t go through, and then you do the same again elsewhere, then your credit record will show those repeat credit checks over a short period

Looking to buy a new car?

NRMA provides car loan options to get you on the road faster