Car loan "cheat sheet "

May 27, 2017
Annette Kennedy

John Kennedy, mortgage broker of Mortgage Choice in Mudgeeraba, Gold Coast does the car finance homework for you.

There is no such thing as a free lunch and some of the catchy slogans on car finance that make you walk in to a dealership do not necessary lead to a better deal for you.

Fast Facts on Car Loans

    •  Standard car loans are 5 years
    •  Application fees for car loans vary but are between $300 -$400
    •  There are no ongoing fees on most car loans
    •  Secured loans – are those where the car is collateral for the loan, have the option of fixed or variable loan options
    •  Unsecured loans – have higher interest rates.  If your vehicle is going to be more than 12 years old at the end of the life of the loan an unsecured loan is required most of the time.
    •  Extra repayments are possible with some loans but not all
    •  Some loans charge a fee for paying it out early and some do not.
    • A balloon payment is a special feature of secured car loans.  This is an amount up to 30% of the total car price that can be paid at the end of the loan.  You can pick the amount of a balloon payment if you choose to have one.  The idea is that you save in your regular repayments and at the end of the loan you may sell your car and pay the ‘balloon’ out.  By taking this option your weekly or monthly repayments are calculated on the total loan minus the balloon payment, hence reducing your regular outgoings.  This option is not required but an option to consider.
    •  Preapproval is not only possible but recommended.  With a preapproval you are a cash buyer and can negotiate on price and feel confident to shop around at both car yards and private sales.


Now is a fantastic time to consider purchasing a new car.


It is  not only end of financial year sale time in the car yards but Mortgage Choice is offering a chance to win $20K if you settle prior to 30th of June, 2017. Click here for all the T&C's.

Mortgage Choice in Mudgeeraba, on the Gold Coast  will research an extensive panel of lenders to find the right car loan for you.

We can provide you with a preapproval, if you wish, to allow you to shop with confidence. You may like to take advantage of our car buying service.

When you find your dream machine, just let us know and we will contact your lender of choice and have the loan documents ready to sign when we meet again.  We will go through the documents so you feel confident and understand your commitments.

 You can usually pick your vehicle up the next day.


Contact us today on (07) 5559 2563 or email on and drive away with the deal that is right for you.

Posted in: Car loans & leasing

Contact us today.

Additional Comments? * :