New car loan: Did you know you'll get a better loan deal with a new vehicle? This is because new car loans are usually secured which means you use your new car as security for the loan. The reason providers offer lower rates and fees for new cars is because they are considered a lower risk, as you are the first owner and the car is unlikely to have the underlying problems of a used car with multiple owners. This makes it easier for the provider to get their money back if you default on the loan and they have to sell your car to recover their loss.
Used car loan: The great thing about purchasing a pre-loved vehicle is that you'll get a much better deal at the car yard or with a private seller because cars depreciate so quickly in value over the first few years. While you'll save on the total cost of the car, you'll generally have to pay a higher interest rate and fees when it comes to taking out a car loan because lenders consider used cars a higher risk. And while you may be able to secure your car loan with a used car, usually providers have a cap on the age of the car of up to 5 years.
Salary sacrifice car loan: If you want to bring down your taxable income, you could consider salary sacrificing, which you set up with your employer and means instead of paying your monthly car loan repayments out of your bank account, the money will be deducted from your salary, thus reducing your taxable income.