Whether you’re buying your first car or upgrading to something new, applying for a car loan is a big decision, and one that’s worth getting right. Taking the time to understand your options can help you avoid unnecessary costs and ensure your loan fits comfortably within your budget.
Here are five important things to think about before you apply.
1. New or used?
Before anything else, think about the kind of car you’re after. A brand-new car might come with the latest features and warranty benefits, but a used car can be more affordable and still serve you well.
At APS, we offer loans for both new and used vehicles. Whether you’re buying from a dealer or privately, we can help you make it happen.
2. How much do you need to borrow?
Some people choose to borrow the full cost of the vehicle, while others prefer to contribute a deposit and borrow the rest. At APS, we offer car loans of up to 100% of the vehicle’s value, which means you don’t need to wait until you’ve saved a large deposit.
Keep in mind that borrowing more will increase your repayments and the amount of interest you pay over time. So it’s worth working through your budget to find a loan amount that feels manageable.
3. Understand interest rates and loan terms
Car loans come with different interest rates and loan terms, and both can affect your monthly repayments and the total amount you’ll repay over the life of the loan.
A shorter loan term usually means higher repayments but less interest overall. A longer term can lower your monthly cost but increase the total interest paid. The key is to find the right balance for your budget and goals.
Our friendly team can help you explore different scenarios and explain how the numbers stack up.
4. Watch out for fees and hidden conditions
Not all car loans are the same. Some lenders charge early repayment fees or include extra costs that aren’t obvious upfront. Others may have restrictions on what kind of car you can buy or who you can buy from.
At APS, we keep things simple and transparent. Our car loans come with no hidden fees, and we’re upfront about all the terms from the start, so you know exactly what to expect.
5. Get pre-approved for peace of mind
Getting pre-approval for your car loan can give you confidence when you’re shopping around. It shows sellers you’re serious and gives you a clear idea of your budget, helping you avoid any last-minute surprises when it comes time to make an offer.
It also allows you to act quickly if you find the right car, knowing your finances are already sorted.
Let’s get you on the road
We’re here to make your car buying experience easier, with flexible loan options, competitive rates and a friendly team that’s always happy to help.
Whether you’re buying new or used, from a dealership or private seller, we’ll guide you through the process and help you feel confident about your decision.
Written by Loans Officer, Scott Davidson.
Scott brings over 25 years of experience in the finance industry, having worked across a variety of roles since starting his career with AGC in the 1990s, where he specialised in credit control and wholesale finance. His passion for travel eventually led him to spend time overseas before becoming a valued member of the APS team. He specialises in personal lending solutions, including both secured and unsecured loans, and also assists members with investment savings accounts. Scott is committed to helping you find practical, personalised financial options that suit your needs.