Sometimes, personal circumstances make car loans harder to get than a mortgage! And it’s more common than you think.

Do you remember that incredible feeling of freedom when you passed your driving test and got your first car? Amazing, right? Buying a car is most people’s first really big expense and if you were lucky enough to be living rent-free with your parents, not much of a stretch to save for. But as you get older, life tends to get in the way of those car upgrades. Rent and mortgage payments; grocery bills, school fees, health insurance and the occasional takeaway coffee; then there are Netflix, Spotify, Amazon and a million other subscriptions that drain your bank account. 

For those of us who aren’t Kardashians and actually need to save up for a car, loans are often the answer. But car loans can be more difficult to secure than a mortgage for a home! That’s because over the last five or so years, credit scores have become a really good way for financial institutions to assess customer risk. If you’ve ever missed a payment or been denied a personal loan for any reason, it’ll sit right there on your credit score — for a long time. Once you get that black mark against you, credit reporting agencies sit and wait for your next loan application, with fingers “tented” like Mr. Burns or Gru from Despicable Me… “Muahahaha!” 

If your circumstances have changed since that last denied application or missed payment, you shouldn’t keep being penalised for it. The team at Savvy can help you secure a car loan, save you money and get you into that dream vehicle. Savvy is an Adelaide-based business and for 11 years, they have been helping Australians get the most competitive car, home and insurance deals in the market. 

Everybody’s circumstances are different: 

  • You’ve only been in your new job for a short time
  • You don’t have a deposit saved
  • You missed a payment once upon a time, way back when…
  • You have a mortgage to pay 
  • You have school fees to pay
  • You have a mortgage AND school fees to pay
  • You’re self-employed and only just starting out

Yep, that last point is more common than you would realise. There are plenty of talented Adeladies out there who felt inspired to start their own jobs or business… but don’t have the track record and the confidence to go to the bank and ask for a car loan. Well, Savvy can help! 



Follow these Savvy steps to a car loan that saves you money: 

1. Decide whether you want a new, near new or used car. Buying a new car increases your chances of getting loan approval and lower interest rates. In other words: The lower the risk to the lender, the higher your chances of approval! Older cars are a little riskier, so, lenders aren’t quite as quick to approve loans or offer the lowest interest rates.

2. Have a fair idea of what you can comfortably afford to repay each month. Remember, you’ll be balancing your costs of living and car running costs, like petrol, insurance and servicing. Use an online calculator to help you with those initial numbers.

3. Lenders love customers who have a deposit. And a 20% deposit is even better! This demonstrates a track record of saving / making payments and it means you won’t have to borrow as much to purchase the car. For those playing at home, that means less interest payments going to the lender and more money stays in your pocket in the long run.

4. Have all your paperwork ready before you start looking at specific cars. Once you fall in love with one, it becomes harder to negotiate. It also means you might fall into the trap of using the dealer’s recommended lender. Savvy works with at least 15 different lenders, who are really competitive with their rates. But don’t take my word for it, this information is available to the public at Savvy. 

5. Getting a free online quote gives a good indication of how much you can borrow. Or speak to a qualified financial professional to discuss your circumstances. 

If you’re an Adelady who needs a new car, but you’re not sure how to go about getting a loan, speak to the friendly team at Savvy.

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