“Quick and convenient”: how Malcolm refinanced his car loan

Debt had become a source of anxiety

Malcolm is a Telstra business analyst who moved from Brisbane to Victoria with his wife, two cats and dog. Past family circumstances had affected his credit history, and he describes carrying a persistent anxiety about debt.

His car loan had an interest rate of roughly 10 to 11 per cent and a repayment of about $230 a fortnight. He wanted to see whether refinancing could reduce the pressure.

A lower rate on the car loan

Malcolm compared options through WeMoney and refinanced with OurMoneyMarket. He recalls the process taking about 24 hours.

The new rate was around 6 per cent and the scheduled repayment fell to approximately $150 a fortnight. Those figures relate to Malcolm’s account and timing, and rates available to another borrower will depend on their circumstances.

“Quick and convenient,” is how he describes the experience.

Less anxiety around the repayment

The smaller scheduled payment allowed Malcolm to direct more money towards savings. He also observed his credit score increase later, although many factors can affect a credit score and his experience does not establish that refinancing caused the change.

For Malcolm, the main result is emotional. The car payment no longer occupies the same amount of mental space, and the household has more room in its fortnightly budget.

Refinancing worked for him because the new rate and repayment suited his circumstances. Anyone comparing a refinance should also check fees, the remaining term and the total amount repayable before deciding.

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Disclaimer: Malcolm’s experience is his own and is not a guarantee of a similar result. The information in this article is general in nature and was prepared for information purposes only. It should not be considered financial advice and does not take into account your objectives, financial situation or needs. Consider whether it is appropriate for your circumstances and seek independent advice before making a financial decision.