With COVID-19 putting pressure on many Australians, people across the country are making their financial security a priority like never before. Building up the nest egg is imperative in times of economic unrest, especially in a year where we don’t know what might be coming next. Regardless of where you are and what level of lockdown you’re under, you still need to be mobile for the essentials like medical trips and grocery shopping - without cutting into your rainy day fund.

If you’re looking for a new vehicle right now, it’s worth thinking very carefully about your options. With more than 90% of all drivers in Australia taking advantage of finance options to purchase a car in 2017, it’s more likely than not that the thought of a loan has crossed your mind. 

There is an alternative. Don’t make a ten-year commitment to a loan that will end up costing you nearly as much again in interest. Carbar offers all the benefits of traditional car ownership through our car subscription service that will save you time, and quite possibly, help grow your nest egg. 

Why a car loan is a risky idea 

If you’ve glanced at a lender’s interest rates in the past few months, you may have been pleasantly surprised. Yes, it’s true, interest rates on car loans are low right now, but with loan terms of up to a decade on offer, it’s vital to remember that you won’t be paying these rock-bottom rates forever. If 2020 has taught us nothing else it is that the market is prone to change. You’d kick yourself if you financed a car right now and rates took a hike in the coming months and years, leaving you with payments well above what you originally signed up for 

Additionally, it’s vital to remember that loans of all sizes and for all purposes come with risk. One of the key risks involved with a car loan is what’s called an ‘underwater trade-in’. An underwater trade-in is when a car’s resale value is lower than the remaining loan principal owed on it. For example, if you go to trade in your car to a dealer and find out that they will only pay you $2,000 but you owe $3,000 on your loan, that’s an underwater trade-in. 

You can avoid any underwater trade in dramas by reassessing whether or not owning a car is even necessary for your lifestyle. When you sign up for a Carbar subscription, you’ll access all the best elements of owning a car without the hefty price tag that goes with it. No loans and no hidden fees or incidental charges, just a wide selection of great cars when you need them.

Equally important is your loan eligibility. Just as many Aussies are tightening the belts on unnecessary expenditure during COVID-19 to protect their savings, so too are many lenders. Unfortunately for the consumer, this means that many banks are lending less and on stricter terms than they previously were. Heightened requirements for finance mean that you could not be getting as good a deal as you’re worth - if you’re getting a deal at all. Higher interest rates, stricter security requirements, harsher terms - these are all things to be aware of as a borrower during COVID-19. 

Subscribing with Carbar - the low stress alternative to finance

Living debt-free as a driver doesn’t have to mean having tens of thousands of dollars on hand for a new car. With Carbar’s car subscription model, you enjoy all the benefits of ownership for a fraction of the upfront costs with none of the stress, all while enjoying even greater flexibility than you’d get on a loan. No variable costs, no interest, no balloon payments - just one fixed payment every week that you can set and forget. 

With Carbar’s car subscription, you enjoy exclusive use of the vehicle of your choice from leading manufacturers including Jeep, VW and Mercedes-Benz, with registration, insurance, roadside assistance and servicing bundled in. Never compare a policy, forget about a registration reminder or miss a scheduled service again - Carbar takes care of all of it for you, saving money, time and energy. Free yourself from debt and frustration and put cash back in your wallet all the while. 

Keep your life moving the flexible way with Carbar. To learn more about car subscription, browse our range of vehicles or join for free, visit carbar.com.au today.