Dealer vs lender: comparing used car loan options

When buying a used car, it’s important to consider all your financing options. You can secure a loan through a car dealership or go directly through a lender like Handy Finance.

Dealer financing

Some car dealerships offer financing, where everything happens under one roof – shopping, arranging a loan, and sometimes even handling a trade-in. Dealer financing may be limited in terms of loan options, and interest rates are typically higher compared to lender loans. Additionally, dealer financing generally does not provide options for refinancing or consolidating other loans you may have, which can make managing multiple repayments more challenging.

Lender financing

Going through a lender like Handy Finance gives you greater flexibility and control. You can choose the car you want, benefit from competitive fixed interest rates, and have the option to manage or consolidate other loans if needed. Our fee structure is clear: there can be a one-off establishment fee which covers the administrative costs of processing your application, but there are no monthly account-keeping fees or early repayment penalties, so you can pay off your loan faster without extra costs.

With Handy Finance, applying is simple and fast. You can complete your application online and receive pre-approval within minutes. Secured pre-approval is valid for one month, giving you time to shop for your car. We offer used car loans from $2,001 to $100,000, with terms from one to seven years and repayment options weekly, fortnightly, or monthly – whichever works best for your income.

Comparing used car loans: what to consider

When exploring different used car loan options, it’s essential to weigh a few key factors. What are the loan terms? What is the interest rate and comparison rate? Are there any fees involved? Will you be able to comfortably manage the repayments?

Handy Finance offers used car loans that are fair and flexible, helping you manage your purchase with confidence. We review your application to provide clear terms and a competitive interest rate, so you can focus on finding the right car without financial stress.

You can also use our loan calculator to easily estimate your repayments. Simply enter the loan amount, loan term, repayment frequency, and your credit rating to see how different factors affect your repayments. This can help you plan ahead and choose a loan option that works best for you.