Car sales is a big business in Australia, selling more than 90,000 new cars as well as second-hand cars every month. People in Australia, car loan is unavoidable. If you are thinking to own one by borrowing money through a lender, here are a few tips to keep in mind:

The Car SelectionHere is a list that can help to select the best make and model of a car as per your affordability and needs-

The Car FinanceHere is a list that can help to select the best make and model of a car as per your affordability and needs –

• Keep in mind that the car is a depreciating asset and its value is going to decrease over time – even as soon as you drive it out of the showroom. Thus, don’t prolong your loan term, else you could end up owing more than the worth of your car.
• Your car loan term typically must fall between five to ten years. Take it as a separate loan option, it is not at all advised to get a home loan redraw or line of credit as it will be accruing interest for a longer period. That will cost you a lot more in the long run!
• A good car insurance policy is always necessary. Go for a compulsory third party (CTP) insurance at the time of purchasing your new car. However, it will only protect you against claims for compensation if someone is injured or killed by you in a motor vehicle accident (the specific conditions vary from state to state). This type of policy doesn’t cover the cost of repairs to any vehicles or property – yours or anyone else’s. Therefore, a comprehensive car insurance policy is the ideal protection. Find out more about car insurance here.

While selecting a new car is fun, make sure you put as much time and effort into choosing the financial product that’ll serve your needs as well.