Car Loans & Personal Finance in Gladstone

Car Loans and Personal Finance Made Simple

Buying a new car or need personal finance? While we’re primarily mortgage brokers, we also help clients with car loans and personal finance to provide a complete financial solution.

Our approach is simple: show you the full cost, not just the rate. Dealership finance might seem convenient, but an independent comparison could save you thousands.

Why Compare Car Loan Options?

When you walk into a dealership, the finance they offer is often convenient but rarely the most competitive. Dealers earn commissions from their finance partners, which can mean higher rates for you.

Benefits of using a broker for car finance:

• Access to multiple lenders, not just the dealer’s partner
• Clear breakdown of total cost including all fees
• No pressure to add unnecessary extras
• Same professional service you’d expect for a mortgage

Understanding Car Loan Costs

The advertised rate isn’t the full picture. Here’s what really matters:

Comparison Rate

The comparison rate includes fees and gives a better picture of the true cost. A low headline rate with high fees might cost more than a slightly higher rate with no fees.

Total Interest Paid

Over a 5-year term, even small rate differences add up:

Loan Amount	Rate	Monthly	Total Interest
$40,000	7.0%	$792	$7,503
$40,000	8.0%	$811	$8,679
$40,000	9.0%	$830	$9,880

A 2% rate difference means nearly $2,400 more in interest over the loan term.

Fees to Watch For

• Establishment fee: One-off setup cost
• Monthly account fee: Ongoing cost added to rate
• Early repayment fee: Cost to pay off early
• Late payment fee: Penalty for missed payments

We’ll show you all these costs upfront so you can compare apples with apples.

Secured vs Unsecured Car Loans

Secured Loans

The car is used as security (collateral) for the loan.

Pros:

• Lower interest rates
• Higher approval chances
• Larger amounts available

Cons:

• Lender can repossess if you default
• Car must meet lender criteria (age, value)
• May need comprehensive insurance

Unsecured Loans

No asset pledged as security.

Pros:

• No risk of losing the car
• Can buy any vehicle (no restrictions)
• Simpler documentation

Cons:

• Higher interest rates
• Stricter approval criteria
• Usually lower amounts

For most car purchases, a secured loan offers better value if you’re comfortable with the car as security.

Should You Use Home Equity for a Car?

Some clients ask about accessing home equity to buy a car. Here’s the honest assessment:

Potential benefits:

• Lower interest rate (home loan rates vs car loan rates)
• Tax deductible if the car is for business use

Significant risks:

• Your home is at risk, not just the car
• A 5-year car purchase becomes a 30-year debt
• You’ll pay more total interest over the longer term

Our recommendation: For most people, a dedicated car loan with a shorter term is the better choice. The slightly higher rate is offset by paying off the debt faster and not putting your home at risk.

Personal Loans

Beyond car finance, we can help with personal loans for:

• Home improvements (smaller projects not requiring refinancing)
• Debt consolidation
• Major purchases
• Travel or events

Personal loans are typically unsecured with terms of 2-7 years. We’ll help you understand the full cost and whether this type of finance suits your situation.

Ready to Get Car or Personal Finance?

Before you sign dealership finance or take the first loan you find, let us compare options for you. There’s no obligation, and we might save you thousands over the loan term.