The Big Picture
Buying a new or used car is a big financial decision, and many people opt to make loans rather than pay cash outright. This prompts the question, how many Australians have a car loan? The answer might be lower than you think. According to the newspaper The New Daily, Australians across the country borrowed a combined total of $16 billion to pay for cars, new or used in 2018. Another statistic pinpoints that over 7% of Australians had car loans they were currently paying in 2016. These numbers show to be increasing year after year, as more Australians hit the road.
When looking at how many Australians have a car loan, it’s interesting to see how these figures compare to the rest of the world. Business Insider reports that 82% of cars in the UK were purchased using some kind of auto or car loan statistics. A staggering statistic comes from the US, where a whopping 43% of the adult population has a car loan. Comparatively, Australia isn’t in as dire straits as other countries around the world. However, with rising interest rates, car loans are putting more and more Australians into debt that’s difficult to get out of.
There are a number of pros and cons to using a car loan. With how many Australians have a car loan, it’s easy to see that It’s an option increasing in popularity in recent years. When getting a car loan, it can be difficult to avoid high-interest rates or unfair terms. Sites like mate.com.au are key to ensuring you make the most of your money. An auto loan doesn’t have to be painful, hence why over 7% of Australians have committed to one. Between home loans, personal loans, and credit cards, being smart with your money will help you to get on the road and not sink beneath the waves.