Car finance options

The pros and cons of using a personal loan, home loan redraw, car dealer finance, or car manufacturer finance to buy a car.
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04.Car dealer finance


More than a third of people who buy a car from a car dealer use dealer finance; interest rates are similar to personal loans.


  • Convenient

  • Unnecessary insurance, such as loan protection insurance, may be included.
  • Check carefully for fees and commissions. A CHOICE shadow shopper was offered an $18,000 loan with a $265 establishment fee, a $5 monthly fee and a $495 dealer fee (commission).

Tip: Do your research, get pre-approval for the best offer (such as a personal loan from a credit union), show it to the car dealer and ask them to better it.


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