You know what they say: Timing is everything. It’s a statement that’s true for many things, and could now relate to vehicle purchase. It may not be enough to just get an affordable, flexible car loan – you want to get it at the most advantageous time possible.
The following are a few reasons why Australians might be particularly well-placed at the moment to take out a car loan. One of these facts might be what gives you that extra push you need to start your car – and loan – hunting.
Three Japanese manufacturers have brought down the price of family-sized cars by up to $2,600.
1. You might find a good deal on a Japanese model
January 15 this year marked the date that Australia’s free trade agreement with Japan began. While high-profile treaties and agreements signed by politicians might seem a world away from your car-buying ambitions, in this case, they could be quite closely connected.
The Japanese are famous for their cars, which are coincidentally one of the types of imported goods that have seen a marked reduction in price. Federal Minister for Trade and Investment Andrew Robb observed that three Japanese manufacturers have brought down the price of family-sized cars by up to $2,600 since the agreement was signed, and $7,600 for higher-end vehicles. If you’ve always wanted a Japanese car, this could be your lucky day – or year!
2. New cars are cleaner
Rather than being concerned about price, you might be focused more on the environmental cost of the vehicle you drive. Given how frequently we use our cars to get around, it’s only natural your car’s emissions occupy your thoughts.
A recent report from the National Transport Commission might give you the impetus to upgrade your current, carbon-pumping model. According to the report, the national average for car emissions from new vehicles fell by 2.4 per cent in 2014 since the year before. That means over the last 10 years, total light vehicle emissions have fallen a whole 22 per cent, smashing the government-set target for emission cuts.
3. Car loans are more affordable than ever
In case you missed it, the official cash rate is currently at an all-time low of 2.25 per cent. The cash rate doesn’t only apply to unique home loans – it also guides car loan rates, which tend to only be a few percentage points higher than mortgage rates.
With CoreLogic RP Data’s Head of Research Tim Lawless noting that home loan rates were at their lowest since 1968, the average car loan is similarly well-priced right now. It’s certainly a far cry from when the cash rate was well over 10 per cent in the early 1990s.