Car loans on rise

By Andrea Lavigne | 18/01/2010 12:00:00 AM | 0 comments

Opportunities to diversify may be expanding for brokers, as the number of car loans escalates 400% in December.

According to the financial comparison website RateCity, the number of applications for car loans increased almost 400% in December 2009, compared to the previous year. The site also reportd that the number of Australians comparing car loans at RateCity more than doubled (115%) for the same period.

The results follow a report from the Federal Chamber of Automotive Industries which found new car sales were up 6.2% in December compared to the previous month.

"People were possibly holding off buying a new car and getting a loan until the economy became more stable, which has resulted in a renewed attraction for car loans," said Damian Smith, RateCity CEO.

Smith added that the Federal Government business tax breaks on the purchase of new cars also probably impacted the car loan market.

"With the conclusion of the tax break incentive ending in December 2009, and as interest rates are on the rise, it will be interesting to see how these factors will impact the car sales and loans markets in 2010."

RateCity's most popular car loans of 2009 and their current minimum rates, as of January 15, 2009:

1. Defence Force Credit Union (New) - 8.99%
2. Bankwest Car Loan (secured) - 10.99%
3. IMB (personal, secured) - 9.90%
4. FCCS Credit Union (online rewards) - 8.70%
5. MECU (new) - 8.74%

 

 

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