MELBOURNE, AUSTRALIA, November 05, 2026 /24-7PressRelease/ -- When it's time to replace your current vehicle or buy your first one, a car loan could help you make the purchase without having to save the full amount upfront.

The ACT Government reports that 59% of Canberrans use a car daily, highlighting just how reliant the city is on cars. Understanding how car loans work can help you explore your options, plan your repayments and decide which type of vehicle best suits your needs.

Choosing between new, used and electric

New or used cars

A new car may come with a manufacturer's warranty and the latest features, while a used model can offer more choice within a given budget. The right fit depends on what matters most to you, including the vehicle's age, condition, features and intended use.

Car loans can make either option more accessible by spreading repayments over an agreed term, giving you the option to buy a vehicle sooner while managing the cost over time. It could also allow you to keep some savings for emergencies or other financial goals.

It's also worth considering the ongoing responsibilities of car ownership, including registration, servicing, fuel and insurance, when working out what you can comfortably afford.

Electric vehicles (EVs)

Electric vehicles are gaining ground in Canberra. According to the ACT Government, 44% of newly registered vehicles in the Territory in August 2026 were electric.

Going electric also means thinking about how an EV would fit into your routine. Driving habits, access to charging and charging costs can all influence the ownership experience. For some drivers, home charging may be convenient, while others may rely on public facilities.

For those without home charging, Canberra has over 300 public EV charging bays near shopping centres, workplaces and community facilities. The ACT Government's public EV charger directory lists government-funded chargers and directs drivers to PlugShare to explore more charging locations.

What to compare when looking at car loans

Interest and comparison rates

According to Moneysmart's car loan guide, the interest rate offered can depend on the features you choose, the length of the loan, your credit score and the vehicle you're buying. Lenders weigh these factors differently, so the rate you're offered may vary.

The comparison rate combines the interest rate with most fees and charges into a single figure. It can make it easier to compare the overall cost of loans with the same amount and term, helping you look beyond the advertised interest rate when exploring your options.
Fixed vs. variable interest rates

With a fixed rate, your interest rate and repayments stay the same throughout the agreed term. This can make budgeting easier because you know how much your regular repayments will be, even if market interest rates change. A variable rate, on the other hand, can rise or fall when your lender adjusts its rate, meaning your repayments may change, too.

As Moneysmart explains, the type of rate you choose can affect both your regular repayments and the total amount paid over the life of the loan. It also notes that variable rate car loans usually don't have exit fees, which can be worth considering if you plan to pay off your loan early.

For borrowers who prefer the certainty of fixed repayments without giving up the option to pay off their loan early, Handy Finance offers car loans with fixed rates and no early repayment fees.

Secured vs. unsecured car loans

Car loans can also differ in what backs the borrowing. With a secured loan, the car acts as security for the debt. This may mean a lower interest rate, but if repayments aren't met, the lender may be able to repossess and sell the vehicle.

Meanwhile, an unsecured car loan doesn't use the vehicle as security, although its interest rate may be higher. Lenders don't all offer the same types of loans, so understanding whether a loan is secured or unsecured can help you compare the terms and responsibilities involved.

Loan terms, fees and total cost

The loan term helps determine how much you repay at a time and how long you'll be making those repayments. A longer term may mean smaller regular repayments, while a shorter term generally means paying off the loan sooner. Comparing different terms can help you understand how each would fit your budget.

Moneysmart also highlights the need to account for ownership costs, such as registration, insurance and running expenses, and to consider whether repayments would remain manageable if your circumstances changed. Check establishment fees, ongoing charges and early repayment fees, too, to get a clearer picture of the commitment involved.

Planning your next car purchase

Whether you're considering a new, used or electric vehicle, understanding your options can help you choose a car and loan that suit your needs.

Car loans can allow you to spread repayments over time and bring your purchase forward, while keeping some savings available for other priorities. The key is finding a loan structure and repayment amount that fits your circumstances.

Before you start visiting dealerships or browsing listings, consider getting pre-approval. It can help you understand how much you could borrow, giving you a clearer budget to work with as you compare vehicles. Keep in mind that pre-approval isn't a guarantee of final approval, and the amount available will depend on the lender's assessment.

You can also use the Handy Finance Car Loan calculator to estimate potential repayments and see how they might fit into your plans. With a clearer picture of the costs and your borrowing options, you can take the next step towards finding a car that fits your life in Canberra.

Handy Finance is an independent Australian fintech company and online-only consumer lender. The company is dedicated to simplifying money management by using automated technology to provide a seamless application process, keeping its operating overheads low to pass on the savings in the form of lower interest rates.

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