Lender drops auto rates to lowest on market

by Madison Utley28 Aug 2019

A peer-to-peer lender has dropped its car loan interest rates for the second time this year, making them the lowest on the market at the time of publishing according to Canstar.

RateSetter’s new rates start from 4.69% and are already available to the lender’s network of 4,000 brokers.

According to CEO Daniel Foggo, the reduced rates will better enable RateSetter brokers to tap into the opportunities in the used car market.

“Harsh economic conditions have stifled consumer appetite for new cars and stimulated hunger for great value. That’s where our market-leading used car rates set us and our brokers apart,” Foggo said.  

“Data is showing consumers are spending less and less on their automotive purchases and avoiding the price-tags of new cars altogether. We’re encouraging brokers to come to the table with the best value deal they can offer in order to meet this level of consumer scrutiny.”

“Car loan brokers also need to be cognisant of competing effectively against dealership finance. With rates as low as ours, we anticipate dealerships will find it very challenging to undercut brokers.”

The rate announcement follows a steady stream of RateSetter-aggregator panel partnerships, with the lender having now accredited more than 9,000 brokers across a range of aggregator panels.