how does car finance work Page 2

Car finance in Australia is essentially a loan with a bit of flair. You borrow money from a lender—usually a bank, credit union, or dealership—and pay it back over time with interest. The two common types are Personal Loans (you own the car outright) and Hire Purchase (the lender owns the car until you've paid it off). Interest rates can range from around 5% to over 15%, depending on your credit score and the deal. Your repayments are usually monthly and can be fixed or variable. Watch out for hidden fees and read the fine print, or you might find yourself paying for the car twice.

For buying and financing options, check out CarShowroom and Tradingpost for current deals and market prices.