Working for your financial and consumer rights

  Advice Line
Mon-Fri: 9am-4pm

Motor Vehicle Finance

Signing the contract for a car loan

A loan contract is a separate contract between you and a lender, such as a bank. The dealer is not part of this contract and you do not have to obtain the loan from the dealership. You may wish to shop around for the best loan for you.

Every application for a car loan will be recorded on your credit file, even if you do not go ahead with the loan. Click here for more information on credit files.

Before signing a car loan contract you should read the terms and conditions carefully, paying close attention to:

  • All fees and interest rates;
  • Repayment amounts and frequency of repayments;
  • Any balloon payment required at the end of the loan;
  • The total amount you will have paid at the end of the loan period;
  • Any insurance requirements; and
  • What happens if you can’t make a repayment.
It is important to ensure the repayments are within your budget and you have not stretched yourself beyond your capability to repay. 

Are you behind on your car loan repayments?

Your options include:

Applying for a hardship variation

Negotiating an arrangement to pay by instalments or to settle the debt.

Refinancing the loan

If you are unable to make your repayments on your car loan and you do nothing, the lender may issue you with a default notice, or eventually repossess the car .

For more information you may wish to read our fact sheets on Buying your first carDefault Notices and Repossession.

Financial Counsellors also offer a free, non-judgemental service to consumers experiencing financial hardship.  You can find out more about financial counsellors, their services and book an appointment through the National Debt Helpline 1800 0074 007.

If you are having difficulty meeting your repayments and would like advice, message us using the form below for a confidential discussion, or scroll down to see other ways to reach us.

Please enable JavaScript in your browser to complete this form.
Max 250 Characters
Max 300 Characters

Client Contact Safety

Is it safe to call you?
Is it safe to send an email to you?
It is safe to leave a voicemail message for you?
Skip to content