Cars for Sale 
Finance 
Warranties 
Tips when Buying
Pre Purchase Inspection 
Checking Vehicle Ownership 

 

 

Borrowing on the Mortgage versus specialised Car Finance

The temptation with borrowing on the mortgage is keeping the repayments low, by extending the term over which the loan is repaid.
It costs less each week, but in the end, this can end up costing a lot more.

It's sensible to pay your House over a longer term, since its an appreciating Asset that grows in value.
However, your Car (however much you love it) is a depreciating liability, which generally reduces in value. It can therefore make more sense to pay this off more quickly under a dedicated car loan.

Cost of $10,000 loan

Mortgage
7% over 25 years

Finance
13.9% over 4 years

Total Interest over life of Loan
Savings using Finance option ...

$11,204

 

$3,092
Save $8,112
or 72%

Return to Buyers Finance section
Finance Calculator
Online Finance Application Form

 

 

 

Printable Page | Top of the page