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What are the best ways to finance your new car purchase?


If you’re looking for a sign to finally buy that dream car, this is it. 

Next to a home, a car is probably the biggest investment that you can make. It’s also an enjoyable and memorable experience too – but often, worrying about the finances can get in the way of fulfilling that dream. 

To help you prepare for the ride that is buying a car, we have listed some of the best ways to finance your vehicle purchase. 

Read on and find out which option may work best for you. 



Since buying a car is a big decision, you want to start by considering your circumstances, preferences and intentions before searching for a car that will take you either from A to B, accompany you on your next adventure, move the family or make an impression when cruising the streets. 

Depending on what you need, there are several car finance options that you can choose from to pay for your car. 

5 ways to finance your new car purchase 

  1. Outright payment through savings

    This isn’t technically financing!

    Well yes. But we are adding this to the list because the most upfront way to pay for a car is by paying outright with cash using your savings. According to Canstar research, it takes around two years to save up for a car, depending on the model and make that you’re looking for.

    However, if you are looking for more options to finance your car, there are several available out there.

  2. Applying for a loan

    The next option is applying for a car loan. This vehicle loan can be paid off through regular repayment over a period of time – which is usually up to 5 years. This is a good option if you’re buying a personal car as this loan can be used to finance the full cost of the purchase, which includes:

    ✓ on-road costs
    ✓ insurance
    ✓ warranties 
    ✓ loan protection

    Tip: interest rates for brand-new cars are typically more competitive than interest rates for used cars.

  3. Car Finance Lease

    If you’re looking for low or no deposit terms, another option is to apply for a car finance lease. With a vehicle finance lease, terms can be set and with fixed interest rates, repayments can be budgeted throughout the leasing term of the car. You also have an opportunity to own the car by the end of the term.

  4. Commercial Hire Purchase (CHP)

    In a Commercial Hire Purchase Agreement, you are given the right to use the car in return for regular payments during the term. By the end of the term, you have the option to pay a balloon payment to transfer the title of the car to your name.

    Note: you can claim interest repayments as well as the depreciation of the asset – in this case, your car – when using a CHP.

  5. Novated lease agreement

    Last on our list is another increasingly popular form of vehicle financing: a novated lease. The novated lease is a three-way agreement between yourself, your employer and the financier, where your employer will be responsible for the repayments using your pre-tax salary.

    To learn more about novated lease agreements, check out this article: Novated Lease and Leasing Explained. 

These are just some of the car finance options out there – but this is just general information only. The right finance option for you must take into account your unique circumstances and your goals for this purchase – so always do your research. 

While we can provide general care financing information, if you have any specific questions, it’s best to ask your financial professional. 

Ready to buy that new car? 

Whichever payment option you decide to choose, it helps to have guidance from car-buying experts who can find you the best deals and make the experience seamless as you choose your dream car. 

If you find that you still have general questions about your car financing options, our team at Private Fleet will be happy to answer your concerns and help you find the best deals for your car purchase. 

Simply reach out to us and we can have a chat about your options. 

Make the most out of your car purchase with Private Fleet. 

Private Fleet empowers you to get all the fleet benefits as a private buyer. 

Backed by decades of industry experience, fleet buying power and a network of car dealers across Australia, we are here to make sure that buying a new car will be as straightforward as possible for you. 

Buying a new car is a memorable experience – let us make it hassle-free, too. 

Reach out to us today for a seamless and easy car-buying experience.