Why should brickies consider car loan repayment options?

As a bricklayer, your vehicle is more than just transport – it's your lifeline to job sites, your mobile storage unit, and often your mobile office. Whether you're looking at a reliable ute for hauling materials, a family car for the weekends, or even upgrading to a luxury car after a particularly good year, understanding your car loan repayment options can save you thousands of dollars.

Understanding Your Car Loan Basics

When applying for a car loan, the loan amount and interest rate aren't the only factors to consider. Your repayment structure plays a massive role in how much you'll actually pay over the life of your loan. A secured car loan typically offers lower rates than unsecured options because the vehicle acts as security for the lender.

The car finance interest rate you receive depends on several factors including your credit history, the type of vehicle (new car loan vs used car loan), and importantly, your chosen repayment structure. Whether you're buying from a car dealer or privately, these fundamentals remain the same.

Weekly, Fortnightly, or Monthly Repayments

Most lenders will access car loan options from banks and lenders across Australia offering three main repayment frequencies:

• Weekly repayments – 52 payments per year
• Fortnightly repayments – 26 payments per year
• Monthly repayments – 12 payments per year

For brickies who get paid weekly or fortnightly, aligning your car loan repayments with your pay cycle makes budgeting much more straightforward. Weekly repayments can also reduce the total interest paid over the loan term, as you're paying down the principal more frequently.

Fixed vs Variable Rate Options

Your car finance can come with either a fixed or variable interest rate:

Fixed rates lock in your repayment amount for the entire loan term. This provides certainty – you'll know exactly what you're paying each week, fortnight, or month. This predictability works well for tradies with steady work patterns.

Variable rates can fluctuate based on market conditions. While they might start lower than fixed rates, they can increase, making budgeting more challenging.

Tailoring Repayments to Your Work Cycle

The construction industry can be seasonal, and as a bricklayer, your income might fluctuate throughout the year. Some lenders offer flexible repayment options that can accommodate these variations:

• Redraw facilities – Make extra payments during busy periods and redraw if needed during quieter times
• Payment holidays – Some lenders allow brief repayment breaks (though interest typically continues to accrue)
• Extra payments – Reduce your loan term and total interest by paying more when work is plentiful

Vehicle Type Affects Your Options

The type of vehicle you're financing can impact your repayment options and rates. Whether you're after a:

• Ute or van for work purposes
• SUV or people mover for family use
• Sedan or wagon for personal use
• Electric car or hybrid car (green car loan options)
• Convertible or luxury car for those weekend drives

Each category may qualify for different rates and terms. Green car loans for electric or hybrid vehicles often come with preferential rates, while luxury vehicles might require larger deposits.

Maximise Your Borrowing Capacity

To maximise your borrowing capacity, lenders typically want to see:

• Consistent income (bank statements showing regular deposits)
• Minimal existing debt
• A deposit (though some 100% finance options exist)
• Proof your income can service the repayments comfortably

The streamlined application process most lenders now offer means minimal paperwork, but having your financial documents organised will take the hassle out of buying your next vehicle.

Calculating Car Finance Costs

When calculating car finance, don't just look at the weekly or monthly payment amount. Consider:

• Total amount payable over the loan term
• Any establishment fees
• Ongoing account keeping fees
• Early termination fees if you want to pay out the loan early

Whether it's your first car, a company car, or an upgrade to that super car you've been eyeing, understanding the true cost helps you make informed decisions.

Working with the Right Dealership and Lender

While a dealership might offer finance options, comparing these against what banks and other lenders offer independently often reveals substantial savings. The car loan application process doesn't have to be overwhelming when you have the right support.

Choosing repayment options that align with your income, work patterns, and financial goals sets you up for success. Whether you're hauling bricks in a trusty ute or cruising in a family SUV, the right car finance structure makes all the difference to your bottom line.

Call one of our team or book an appointment at a time that works for you to discuss which car loan repayment options suit your situation.