Tuesday , October 19 2021

Australians take $ 8.1 billion to pay for new cars in 12 months.


The love of Australia in new cars comes with a bad debt of debt: we have borrowed $ 8.1 billion to buy vehicles in 12 months until November 2018.

The search engine of the comparison website reviewed the Australian Office of Statistics data and found that 19% of the more than 1.1 million new cars sold at this time were purchased on offers of financing

The searcher estimates that, in the current year, Australians will pay more than 500 million dollars in interest on these car loans. The average amount is greater than $ 36,000 at an interest rate of 6.3%.

Graham Cooke of the search engine says that Australians pay a large amount of interest in car finance.

"It seems that thinking that more than 1.4 million dollars in interest are paid on these new cars every day. This is about the same value as 39 new cars," says Cooke.

Car financing is useful for those who do not have the total purchase price, but Cooke has a warning.

"Remember that each additional option you add will increase the overall price and the amount you pay over time," he says.

For each option of $ 5000 in options that are added at the price of a vehicle, the owner will pay, on average, an extra of $ 1000 per year for the duration of a five-year loan says Finder.

But there are good news for buyers of new cars. Stricter regulations on new auto finances can save buyers in thousands of loan repayments.

Distributors could add strong margins to the type of the lender in exchange for larger commissions, but now they can not increase the type of interest cited for the financial company. On the contrary, they can only reduce it by up to 2%. Dealers will only get a full commission if they write the financing contract at the full rate, so that they can pay buyers who try to negotiate at this rate.

In good news for buyers of new cars in Australia, ABS's inflation data indicates that cars are actually cheaper than they were 18 years ago, prices dropped in one 16% in current dollars since the year 2000.

For example, a Toyota Corolla lists for just a few thousand dollars more than 2000, even after explaining inflation and massive advances in technology and security.

A rarity in consumer goods, which has become a risk over time, is a sign that Australian buyers are getting a better value on new cars.

"Cars have been getting cheaper and technology improvements make Australians get more money," says Cooke.

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