Car finance
Updated November 2026
Dealers usually quote finance as a weekly repayment. "$195 a week" sounds manageable, and it's meant to. What it doesn't tell you is the interest rate, how long you'll be paying, or what's been added to the loan.
To find the rate you need the amount borrowed, the repayment, how often it's paid, the loan term and any balloon at the end. The amount borrowed is the drive-away price, minus your deposit or trade-in, plus anything else added to the loan.
Check a dealer quoteSee the interest rate behind the repayment, the total cost, and what a bank loan would save.Gap insurance, extended warranties, tyre and rim cover and paint protection are often added to the finance. That means you pay interest on them for the whole loan. You can usually buy these separately, buy them later, or skip them.
A balloon is a lump sum due at the end of the loan. It makes the weekly repayment smaller, but you still owe it. When the loan ends you'll need to pay it, refinance it, or trade the car in, and the car may be worth less than the balloon by then.
In Australia, lenders advertising an interest rate generally have to show a comparison rate too. It includes most fees and charges, so it's a better way to compare loans. For car loans it's usually worked out on a $30,000 loan over five years, so it can be less accurate if your loan is very different.
A pre-approval from your bank or a credit union gives you a real rate to compare against. It also lets you negotiate the car's price separately from the finance. Ask the dealer for the drive-away price without their finance, in writing.
General information only, not credit advice.