A guarantor car loan is the automotive equivalent of having a safety net woven from your mate’s wallet. Essentially, a third party—usually a friend or family member with a solid credit history—agrees to cover your loan repayments if you suddenly decide to vanish or just can’t keep up.
It’s a nifty option if your credit score is about as appealing as a flat tyre but you still want to drive off into the sunset. Expect typical loan amounts up to $50,000 AUD with terms ranging from 1 to 7 years. Interest rates can be a bit higher than standard, reflecting the risk to the lender.
Before you rope someone in, remind them that their credit score is on the line—if you mess up, they pay up. For more info or to shop around, check out CarShowroom or Tradingpost for lenders who offer these deals.
LightingListing your ad only takes a few minutes, and most categories are free.
Post an adA weekly hand-picked round-up of the best bargains, free stuff, and trending listings. No spam, unsubscribe anytime.
Know someone looking to buy or sell something? Send them to Tradingpost, Australia's original marketplace.
