Personal car loans, quoted with the comparison rate up front.

A personal car loan is consumer credit regulated by the National Consumer Credit Protection Act. That brings responsible lending obligations on the lender and the broker, a requirement to quote a comparison rate, and access to consumer dispute resolution. Business vehicle finance for a genuine business purpose generally sits outside that regime and is assessed on the business rather than household budget. The security over the vehicle can look similar; the disclosure, protections and tax treatment do not.

It depends on your salary, the vehicle and how much you drive. Novated leases tend to win for higher earners, for eligible electric vehicles because of the FBT exemption, and for people who value one bundled payment for all running costs. A car loan can be better for lower earners, for very low kilometres, or where the employer’s packaging provider adds high fees. Lyft Money compares the two honestly for your situation rather than assuming one answer.

A comparison rate combines the interest rate with most of the upfront and ongoing fees into a single percentage, so two loans can be compared on a like-for-like basis. Australian lenders must quote it for consumer car loans, and it is calculated on a standard example loan, so your own figure can differ. A loan with a low headline rate and high fees can have a higher comparison rate than one with a slightly higher rate and no fees, which is why Lyft Money quotes the comparison rate up front.

No. Talking to Lyft Money about your options does not involve a credit check. A credit enquiry is only made when you decide to proceed with an application to a specific lender, and your broker explains that step and gets your consent first. Because we check which lenders are likely to approve you before applying, you avoid multiple enquiries on your file.

Yes. Used cars from dealers and private sellers are financed, with most lenders allowing the car to be up to around 12 to 15 years old at the end of the loan. For a private sale the lender checks the PPSR to confirm the car has no finance owing, verifies the seller and usually requires an inspection, then pays the seller directly at settlement. Allow a few extra days compared with a dealer purchase.

A balloon lowers your monthly repayment by leaving a lump sum to pay at the end, commonly 20 to 30 per cent of the car’s price. It suits people who plan to sell or trade the car at the end of the term and use the proceeds to clear the balloon. It costs more in total interest, and if the car is worth less than the balloon at the end you make up the difference. Your broker shows the repayment and total cost with and without a balloon so you can decide.

A secured car loan uses the car as security, which gives the lender comfort and usually means a lower rate. If the loan is not repaid the lender can repossess the car. An unsecured personal loan can also be used to buy a car and does not put the car at risk, but rates are higher. For most new and late-model cars a secured loan is the cheaper option; for older cars that lenders will not secure against, an unsecured loan may be the only choice.

Yes. Most consumer car loans allow extra repayments and early payout. Some lenders charge an early termination fee or recover part of the remaining interest on fixed-rate loans, while others charge nothing. Because this affects the true cost if you expect to sell or upgrade within a few years, your broker explains each lender’s early payout terms before you apply.

A comparison rate combines the interest rate with most standard fees into a single figure, so two loans can be compared on a like-for-like basis. It is required for consumer credit regulated by the NCCP Act, such as a personal car loan. Business and commercial lending is generally not regulated that way, so a comparison rate may not be quoted. For commercial finance, ask instead for the scheduled repayment, all fees and the total amount payable over the term.

Under the NCCP Act, we must make reasonable enquiries into your requirements and objectives and your financial situation, take reasonable steps to verify what you tell us, and assess whether the credit is not unsuitable for you. In practice that means questions about income, expenses, dependants and existing debts, and asking for payslips or bank statements to verify them. It is not paperwork for its own sake — it exists so you are not put into a loan you cannot afford.