We've helped hundreds of CQ locals finance their vehicles, and we see the same mistakes over and over. Here's how to avoid them—and potentially save thousands.
Mistake #1: Only Checking Your Bank
Your everyday bank might seem like the obvious choice for a car loan. After all, you've been with them for years. But loyalty rarely pays when it comes to finance.
Why this is a mistake:
- Banks often aren't competitive on car finance
- They have limited products—usually just one or two options
- Branch staff aren't finance specialists; they're selling what they're told to sell
What to do instead: Compare at least three options before deciding. This includes:
- Your bank
- A finance broker (like us)
- The dealer's finance (but be very careful here—see Mistake #3)
Real example: A Rockhampton client came to us after being offered 9.9% by their bank. We found them 6.9% through a credit union—saving over $3,000 in interest over the loan term.
Mistake #2: Focusing Only on Weekly Repayments
"Only $199 per week!" sounds great in an ad. But weekly repayments don't tell the whole story.
What dealers don't highlight:
- The total amount you'll repay over the loan term
- The comparison rate (which includes fees)
- The loan term length (longer term = lower payments but MORE total cost)
What to focus on instead:
- Comparison rate - This includes fees and gives you a true cost comparison
- Total cost - How much will you pay in total over the loan?
- Loan term - Shorter is usually better (even if payments are higher)
Example:
| Option A | Option B | |
|---|---|---|
| Weekly Payment | $199 | $245 |
| Loan Term | 7 years | 5 years |
| Interest Rate | 8.9% | 7.5% |
| Total Cost | $72,436 | $63,700 |
Option B costs more per week but saves you $8,736 overall. Always look at the total picture.
Mistake #3: Taking Dealer Finance Without Shopping Around
Dealer finance is convenient—but convenience comes at a cost.
Why dealers push their finance:
- They earn commission from the lender (sometimes thousands of dollars)
- They can make more on finance than on the car itself
- "We'll beat any rate" often comes with conditions that negate the savings
Red flags to watch for:
- "Sign today for this special rate" pressure
- Being told you won't get approved elsewhere
- Add-on insurances and warranties bundled into the loan
- Reluctance to show you the full loan contract
What to do: Get pre-approved elsewhere before you visit the dealer. This gives you a benchmark and removes the pressure. If the dealer can genuinely beat it, great. If not, you're protected.
Mistake #4: Ignoring the Fees
Interest rate isn't everything. Fees can significantly increase your total cost.
Common fees to check:
- Establishment fee - One-off cost to set up the loan ($0-$500+)
- Monthly account fee - Ongoing charge ($0-$15+ per month)
- Early termination fee - Cost if you pay off early or refinance
- PPSR registration - Usually $6-$10 (unavoidable)
The trap: A loan at 7% with $400 in fees might cost more than a loan at 7.5% with no fees, depending on the loan amount and term.
Always calculate the total cost including all fees before deciding.
Mistake #5: Not Getting Pre-Approved
Shopping without knowing your budget is like grocery shopping when you're hungry—you'll make bad decisions.
Benefits of pre-approval:
- Know exactly what you can spend
- Stronger negotiating position with sellers
- No surprises or disappointments
- Faster settlement when you find the right car
Pre-approval myths busted:
- "It will hurt my credit score" - A single credit enquiry has minimal impact. Multiple applications in a short period (rate shopping) are usually treated as one enquiry.
- "It locks me in" - Pre-approval is not a commitment. You can choose not to proceed.
- "It takes ages" - We can usually get pre-approval within 24-48 hours.
How We Help with Finance
At CQ Car Brokers, we work with a panel of lenders—not just one bank. This means:
- We compare multiple options to find the best rate for your situation
- We know which lenders suit different circumstances (self-employed, credit issues, etc.)
- We handle the paperwork and application process
- Our service is free to you—lenders pay our commission
Ready to get pre-approved? Start your application and we'll be in touch to discuss your options. No obligation, no impact on your credit score until you're ready to proceed.
