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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05.Home loan redraw

ONLINE_Filler_CarFinancing_HomeLoanRefinancing

A home loan redraw can be a much less expensive way to finance a car than a personal loan - as long as you pay the redraw back over the same period.

Pros

  • Low interest rate

Cons

  • The longer you take to repay, the more the interest adds up.
  • You need enough equity in your home, and a redraw facility or overdraft.

Tip: ANZ offers a supplementary home loan that can be added onto your home loan and paid off over a shorter period. Other financial institutions offer equity loans that can be used in a similar way.

 

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