New South Wales Car Loan Guide

New South Wales Car Loan Guide

This short guide is for residents who live in New South Wales that are looking to buy a car. Purchasing a car is a huge decision and one that shouldn’t be taken lightly.  There are many considerations to think about.  The first thing that you should consider is the type of car that you want to buy, which solely depends on your preferences, needs, and personal tastes. Before buying a car, you need to make sure that you can actually afford not just to purchase one but to pay for other related costs such as maintenance and repair, taxes, registration, insurance, and much more.

If you’re looking for information on car loans in New South Wales, here are some frequently asked questions and their answers for your reference:


Where can you buy a car in New South Wales?

Car dealership

Buy only from licensed motor vehicle dealerships located in New South Wales.   Dealerships are required to disclose all important information about the condition of the car.  Licensed dealers also offer financing and insurance.


Car sales in auctions are usually repossessed vehicles or those coming from estates of deceased individuals. Although you can get a real bargain when you purchase a car at an auction, there are certain risks involved.  For one thing, it is not covered with dealer guarantee.

Private sale

Private purchase of a car has some risks involved because there is no dealer guarantee.  To ensure that the vehicle you’re purchasing is not stolen or de-registered, always ask for the current registration certification, proof of ownership, registration, engine, and vehicle identification number.

Car market

A car market is a free-for-all trade event where prospective buyers and car sellers congregate.  This is still a private sale and requires sound judgement on the part of the buyer.

Buying a car online

When you intend to buy a car online, remember the location of the seller. Vehicles purchased from another country are not covered by Australian Law.  Vehicles purchased outside of New South Wales may not be covered by territory regulations.


How do you get a car loan in New South Wales?

Getting a car loan in New South Wales is relatively simple.  If you are planning to get one, there are four options for you to choose from:

  • Borrow money from a recognized lender
  • Let a finance broker organise a car loan
  • Dealer finance

These are the various types of car loan types available:

Car Loan Types
What are some common features of car loans that buyers need to know?

No Early Exit Penalty

Car loans usually offer a ‘no early exit penalty’. If you get extra money and you want to pay off your car debt earlier, before the term ends, you can do so without being penalised.  However, it is best to require about this feature because some creditors require penalty payment if you pay-off your loan before the intended time period.

Balloon Repayments

If you have this type of loan, you will pay reduced monthly instalments for the duration of the loan, and then have a large final payment to clear the debt.

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