Car loan interest rates Australia residents should know, depend on a variety of factors. Two people can buy the same type of car and get financing from the same lender but pay different interest rates. This is because of a number of things, including:
i) Credit Rating
When processing applications for auto loans, lenders normally perform a credit check on applicants. Those with low credit scores pay a higher interest rate since they are perceived as being a risky investment. On the other hand, applicants with high credit scores pay a lower rate of interest since they have a great track record of paying loans.
ii) Market Conditions
Interest rates are normally affected by market conditions. When market conditions are conducive, you can get a low-interest auto loan. When there is high inflation, rates may also be raised, increasing the cost of auto financing.
