Featuring quote from Credabl Consultant: Bernard Bosnjak
There is something magical about a low interest rate sitting on a car windscreen. It has an instant gravitational pull. A rate that looks impossibly low tends to create urgency, excitement and a strong sense that you have stumbled upon a rare bargain.
But as most seasoned buyers eventually learn, a low rate is not always a low cost.
This article unpacks what sits beneath those tiny numbers so you can make a clear, confident decision.
Start with the comparison rate
The comparison rate includes fees and charges, which makes it far more useful than the headline rate. Promotional rates are often calculated on shorter terms or smaller loan amounts to appear more attractive.
Bernard Bosnjak from Credabl explains it simply. “The headline rate tells part of the story. The comparison rate tells the truth. If you only look at the headline rate, you are judging the book by the cover.”
Always ask for the comparison rate in writing.
Check the fees carefully
Low rates often hide higher fees. Establishment charges, dealer agency fees, PPSR entries and monthly account fees can quickly turn a bargain into an expensive misdirection.
Request a full fee breakdown before discussing repayments.
Ask whether the rate applies to all models
Some promotional rates apply only to specific stock, run-out models or limited batches. If the salesperson keeps redirecting you to one particular vehicle, it may be because that is the only one that qualifies for the offer.
Check whether add-ons are part of the deal
Add-ons are where many promotions make their margin back. Extended warranties, tint, paint protection and insurance often appear as “strongly recommended”. Translation: they help fund the low rate.
Choose them only if they genuinely add value for you.
Understand the settlement conditions
If a promotional rate requires settlement within a very short timeframe, delivery delays can push you into a higher standard rate. Always clarify the rules before signing.
A single question safeguards your position.
“What happens to the rate if settlement or delivery is delayed?”
Consider green loan options
If you are buying an electric vehicle under a set price threshold, you may qualify for a green loan. These can offer reduced rates, fewer conditions and more transparent terms.
While dealership finance focuses heavily on promotions, green loan solutions focus on consistency of rate reductions. For many medical professionals who prefer predictable costs, that clarity can be more valuable than a headline rate.
Bring the focus back to the whole picture
Rate, fees, flexibility, loan term, conditions and car price all shape the real value of the offer. Your job is simply to slow the pace and look at each element in full.
As Bernard says, “A good car finance decision is one you will still be happy with in three years. If an offer needs pressure or speed to work, it probably is not as strong as it looks.”
A partner who keeps the noise down
You can always take the dealer’s best price, simply ask “how much for cash” and source your finance elsewhere. You are not tied to their loan offering – no matter how convincing they sound
Credabl specialises in supporting medical, dental and veterinary professionals with decisions just like this. Bring us the offer and we will help you uncover the fine print, explore green loan options and find a structure that suits your lifestyle and your plans for the future.
