Nowadays, personal cars have become a major necessity in Australia such that everyone desires to own one. Unlike other countries in the world, Australia is notably sparsely populated relative to its large surface area. The sparsely populated nature of the country obviously has a great influence on personal car ownership. Due to the thinly populated structure of the country, personal cars are used to cover the vast distances between populated areas. This thus explains why personal cars have become a practical necessity in Australia.

According to the Australian Bureau of Statistics 2011, 50 percent of households in Australia had access to two or more motor vehicles, compared to 49 percent in other greater capital cities of the world.  Aside from the convenience and ease of commuting from one place to another while running errands or attending to business meetings and events, personal cars can also be considered an investment which can of course be sold out during rainy days or exchanged for something much more useful and rewarding. It is therefore very comprehensible that people no longer want to rely on the public means of transportation as they fear to bear the frustrations of either missing the bus or wasting time waiting for an already filled bus. In as much as purchasing a personal car sounds like something very easy to do, research and perfect planning are ultimate in easing the process and leaving the purchaser totally satisfied with his or her choice of vehicle.

Nonetheless, the ultimate way to raise money to buy a personal car in Australia is through a cheap car loan. This is because cars do not normally come cheap as they are ranked the second most expensive items after landed properties here in Australia. Money on the other hand is equally limited in supply relative to demand (scarce). Thus, careful considerations have to be made by the potential buyer in order to either benefit from the best possible purchase or from the cheapest car finance options available.

A cheap car loan is generally an ideal way of cheap car financing in Australia given that the country has suffered economic and income inequalities as far back as from the 1970s. Thus the income gap between the rich and the poor is so vast that without good credit facilities such as cheap car loans, it will be difficult or almost impossible for low income earners to afford a car even if personal cars are an absolute necessity. The wealthiest 20 percent of households in Australia account for 61 percent of total household net worth with an average net worth of $2.2 million per household meanwhile the poorest 20 percent of households account for just 1 percent of total household net worth with an average net worth of just $31,205 per household (Douglas, Friel, Dennis & Morawetz 2014). The availability of cheap car loans in Australia is therefore a welcome idea to low income earners since it gives them possibilities of financing the purchase of their personal cars which they would not have ordinarily been able to afford.

However, research is an absolute necessity for those wanting to purchase a personal car whether or not they desire a brand new car or an already used one. It is important to investigate for the purpose of understanding everything it entails to buy a new car. A good research will serve as a guide to the potential car purchaser who will be able to determine which particular car or vehicle favors his or her taste and at what cost. Besides having access to the details about the car one desires to buy, research also helps the potential buyer to determine the cheapest method of financing the purchase of the car. That said, through research, the potential buyer will also be educated on the available types of car loans such as the cheap car loans, the used car loans as well as the personal car loans. With research, one can also get to know the rates of interest of these car loans in order to better prepare his or herself to meet up with the monthly financial obligations as well as the terms and agreements of payment of the loan.

After having researched and arrived at a conclusion on the particular car one needs, it is important to do perfect planning. Money is scarce so it will be of best interest for those without a good credit record to devise a plan to raise money for the purchase of their personal cars. Meanwhile people with  clean credit records who desire a loan for the purchase of their vehicles can go ahead and start negotiating the terms and condition of their loans with chosen or preferred financial  institutions. While planning the budget for the purchase of a car, it is wise to also make plans on expenditures for the daily running of the car. For example, you will need to estimate the level of fuel consumption of your car so as to plan a weekly budget for fuel. You will also need to get insurance quotes for your type of car so as to equally know the annual insurance expenditures. This is therefore the more reason why a cheap car finance Sydney or from nearby areas are helpful.

Generally, taking a loan is not something many people look forward to when everything else is equal. This is so because loans (car loans inclusive) usually come with interest some of which are usually high although it clearly depends on the contract. However, getting a loan to purchase a car remains one of the best options in Australia although it is quite possible for some people especially those in the rich economic class to actually save enough money that can afford them brand new luxurious cars. The cheap car loans are nonetheless highly recommendable or advisable since a new car normally comes with additional expenditures. Thus one will desire to get a cheap car loan so as not to get into a financially uncomfortable and stressed zone caused by the purchase of a car.

Australia nonetheless boasts of many financial institutions especially banks which provide cheap car loans, used car loans as well as personal car loans to make people’s personal dreams of being car owners come into fruition. For instance some financial institutions such as Greater Bank, IMB Bank and RACV offer new car loans with interest rates ranging from 5.44 percent to 6.73 percent. However, if you are looking for a fairly or relatively cheap car finance, you can opt for a special low rate car loan from Beyond Bank as long as you have a clean credit record. It is worth mentioning that low interest rate car loans are mostly offered to buyers who apply for used car loans as against those who desire loans for the purchase of an unused car. On the other hand, personal car loans can be issued at financial institutions such as Bank of Melbourne, Bank SA and Bank West just to name a few. These personal loans nevertheless have higher rates of interest ranging from 8 percent to 15.55 percent.

Nonetheless, the financial institutions in Australia especially banks have made various options of car loan payments available. It should be noted that these different terms and methods of payment have been put in place in order to meet up with the needs of most Australians irrespective of the wide gap between the rich and the poor caused by economic and income inequalities in the 1970s. The balloon payment method for instance makes it possible for people to set large amounts of payment at the end of term thereby making them rather reduce their monthly payments to satisfy their respective budgets. Also, Australian have the choice of deciding between the secured car loan and the insecure car loan. Secured car loans generally have lower rates of interest since only the car being purchased can be used as security by the bank or chosen financial institution. The unsecured car loan on the other hand has slightly higher interest rates given the fact that there is no security for this type of loan.

At the end of the day, it is practical to consult the services of car loan experts if you are hoping for the cheapest car financing method. This is because car loan experts are quite knowledgeable when it comes to car loans and they will obviously be a perfect guide to anyone who aspires to obtain a cheap car loan.