The Canberra Times

How to save money on car finance in the new financial year

Saving money on car finance might be easier than you think. Driva can help you save hundreds on interest rates and fees through easy comparisons. Photo: Shutterstock.

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It's the new financial year, so it's time to start planning how to make your money work harder for you. One way to do this is to save money on car finance.

Now, you may be thinking that you've already got a great deal on your car loan, but it's always worth checking to see if you can get a better one.

The car finance industry's competitive nature can help you obtain a car loan on terms that work much better for your financial situation. You just need to know what to look for and where to get help.

A good place to start is by educating yourself on the different types of car loans available and understanding the pros and cons of each type.

Before selecting a loan, you should also compare interest rates, fees, and repayment options. Which is the first tip on our list of ways to save money on car finance in the new financial year.

Compare and contrast your options

There are a lot of different lenders out there, so it's important to shop around and see who can offer you the best rate.

The interest rate on your car loan can have a big impact on how much you end up paying for your car, so it's important to get the best rate possible.

You can use an online platform like Driva to compare different lenders and find the best rates.

All you need to do is enter some basic information about yourself and the loan you're looking for, and Driva will show you a list of lenders who can offer you competitive rates.

Consider your credit score

Your credit score is one of the factors that lenders will consider when determining the interest rate on your loan.

You can do simple things to improve your credit rating, such as consolidating your debt or controlling your credit card spending.

If you've been paying your current loan in full and on time, you may be listed as a less risky borrower. And if you're looking to improve your credit score, start by taking a closer look at your financial habits.

Making some small changes can have a big impact on your credit rating.

Save thousands by refinancing your car loan

Like the vast majority of Australians, you've probably already got a car loan. This means you're probably paying more interest than you need to. Fortunately, there's a way to fix that.

Refinancing your car loan is one of the best ways to save money on car finance in the new financial year.

Essentially, refinancing means taking out a new loan with a lower interest rate to replace your current loan. This can help you save money in the long run, as you'll end up paying less interest.

Refinancing is a great option if you've improved your credit score since taking out your current loan.

Use Driva

Driva is a new kind of finance company that is dedicated to making the loan application process easy and transparent for its customers.

Driva was founded on the belief that the traditional finance system is unnecessarily complicated and often leaves customers in the dark about important details like interest rates and fees.

Driva is committed to changing this by providing clear, personalised car finance rates from the very beginning of the process.

Additionally, Driva's customer-centric approach means that you'll always be dealing with a real person, not a computer. So if you're tired of feeling lost in the maze of traditional finance, Driva is here to help you find your way!

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