Australian households fork out more on their car loans that exceed their weekly fuel costs

Posted on Friday, March 23, 2018 - 13:30

There are various expenses that come with cars such as getting comprehensive car insurance and dealing with the sea-sawing prices of fuel. However, recent stats show that Australians have car loans that exceed their weekly fuel costs. So, how much are Australians spending on their car loans and how can you source a better car loan deal if you are not happy with your current one?

Who do we go to for car loans?

When looking for ways to finance their cars most Australians usually resolve to car loans to help them finance their wheels. Financing through a dealership can come with high interest rates, but searching for a car loan online is what 81% of consumers do.

Car loan payments still take a huge bite of our financial commitments

When it comes to paying off our car loans we seem to be paying amounts that exceed our weekly fuel costs. Canstar surveyed 2000 Aussies motorist to find out how much they spent on fuel, and the results were an average of $143.54 spent filling up at the pumps. Recent findings by the royal commission revealed that car loan payments were the largest vehicle related expense for households in both capital cities and regional areas. We have spent around $35.7 billion in 2017 in terms of the new finance commitments for motor vehicles. This exceeded what we spent on general living costs in previous years.

The median loan size

We are a car-loving nation. So much so that vehicles could one day outnumber us as people. Savvy conducted a survey among 1500 correspondents to see what they were paying for their car.

Average spending on car $26,364
Average loan term for a car loan 5 years
Average weekly repayments on loan  $128 per week

There is only one secret to finding affordable car loans

There is no need to be a maths boffin, or a car enthusiast to know that the best way you can clinch the best deal for your wheels is through research. Give yourself some time to do adequate research on the car loan market to find something that works for your finances. There are a plethora of comparison sites that can give you an estimate on how much you will be paying on your car.

Online tools have made it easier for you to find the interest rate and monthly repayments at a click of a button so that you always come out with the best deal on the market. One sure way to short change yourself is to not research and compare rates. If you are unable to find a car loan that matches your finances this could also mean you are aiming for a car that is unaffordable. Therefore, you need to change your vehicle options to one that suits your current financial status.

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