A new car typically refers to a vehicle that has not previously been registered or owned.

In car finance terms, lenders usually classify vehicles as “new” if they are purchased directly from a dealership and have not been previously registered to a private owner. Some lenders may also treat demo vehicles with very low mileage as new for finance purposes.

Often yes, although it depends on the lender and vehicle registration status.

Dealer demonstrator vehicles are sometimes eligible for new car loan rates if the vehicle has minimal kilometres and has not been registered to a private owner. However, some lenders may classify demo cars as used vehicles depending on how the vehicle was registered.

New car loans often offer more competitive interest rates than used car loans.

Because new vehicles provide stronger security for lenders and depreciate more predictably, lenders may offer lower interest rates and longer loan terms compared with older vehicles.

Yes, many lenders allow on-road costs and optional extras to be included in the loan.

Borrowers may be able to finance expenses such as stamp duty, registration, insurance, extended warranties and dealership accessories as part of the total loan amount.

Yes. Many borrowers obtain loan approval before their vehicle arrives.

Pre-approval can allow buyers to order a vehicle from the dealership while final finance approval is completed once the vehicle identification details are available.

Loan terms for new vehicles typically range between two and seven years.

Because new vehicles depreciate more slowly, lenders often allow longer loan terms compared with older vehicles.