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5 Biggest Car Finance Mistakes Australians Make — and How to Avoid Them

• October 29, 2025
• Category: Maidstone Cars & Commercials, Used Cars in Maidstone, car-finance, quality used car

If you’re in the market for a quality used vehicle, it’s easy to get caught up in the excitement and overlook the finer details of finance. At Maidstone Cars & Commercials, we want to help you purchase confidently. Here are five of the most common car-finance mistakes Australians make — and what you can do to avoid them.

1. Focusing only on the weekly repayment

It’s very tempting to focus on the weekly payment because it feels manageable — but that number alone doesn’t tell the full story. A lower weekly payment could mean a longer loan term, which often means higher interest cost over the life of the loan.

At Maidstone Cars & Commercials we encourage you to look at the full picture: the loan term, the interest rate, and what you’ll pay overall. Browse our used car range via Used Cars in Maidstone and talk to our team about how term vs interest trade-offs affect your total cost.

2. Ignoring upfront fees and other hidden costs

The advertised price of the vehicle may look great, but once you add stamp duty, registration, dealer fees, and finance establishment costs, your actual upfront outlay might be substantially higher. Excluding those from your budget is a common mistake.

Maidstone Cars & Commercials lists GST-inclusive pricing, provides full title history reports and does independent roadworthy certificates to reduce surprises. :contentReference[oaicite:0]{index=0}

3. Choosing a loan term that’s too long

Stretching your loan term to make weekly repayments smaller can feel good short-term, but it increases the total interest you pay and could leave you owing more than the car is worth for longer. Even when buying a quality used car, the term still matters.

4. Not checking your borrowing power or leaving credit unchecked

A major trap is assuming you’ll get approved without reviewing your borrowing capacity or credit profile. If you have competing debts, missed repayments or an uncertain credit history, you might qualify for less credit or pay a higher rate.

At Maidstone Cars & Commercials they offer flexible finance options and help you understand your options before committing. :contentReference[oaicite:1]{index=1}

5. Not factoring in insurance, servicing and warranty costs

Even if your loan repayments seem manageable, what about the ongoing costs of ownership? Insurance, regular servicing, unexpected repairs — especially for higher-spec or imported models — all add up.

Maidstone Cars & Commercials provides vehicles with inspections, history checks and offers mechanical warranty options to help you plan for ownership beyond just purchase. :contentReference[oaicite:2]{index=2}

How to do it right

• Set your budget not just for the loan repayment, but for full ownership cost including insurance, servicing, registration and parts.
• Ask for a breakdown of interest rate, loan term and all upfront fees — so you can fairly compare finance offers.
• Keep your loan term as short as reasonably possible — the less interest you pay, the sooner you’ll own the vehicle outright.
• Check your credit health early, explore your finance options and don’t rush into the first offer.
• Factor in all ongoing costs: insurance, servicing and parts — especially if you’re buying a higher-spec or less common model.

Ready to explore your next used vehicle? Visit our stock-page at Used Cars in Maidstone or contact us for a tailored finance conversation.

Drive smart, buy smart — and enjoy every kilometre.

— The Maidstone Cars & Commercials Team