Screenshot & share the knowledge
Save these to your camera roll. Send them to a mate who's about to walk into a dealership blind. Be the hero. 🦆
These bite-sized tips cover the most common ways Australians lose money on car loans — from balloon payment traps to dealer warranty markups. Each card is designed to be screenshot-ready, so you can save it to your phone and share it with mates who are about to buy a car.
They're written in plain English, no jargon, no fine print. Just the stuff dealers don't want you to know until after you've signed. Use them as a checklist before you walk into any dealership.
Balloon payments are a trap
Here's why future you will absolutely hate you right now
Dealers push balloon payments to make monthly repayments look cheap. But at the end of your loan — SURPRISE! — you owe $8,000 to $15,000 in one hit. If you can't pay, you're refinancing or rolling it into a new loan. It's the gift that keeps on taking.
🦆 Pro Tip: If a deal only looks good with a balloon, it's not a good deal.
Not A Wood Duck
notawoodduck.com
Always ask for the comparison rate
The interest rate is only half the story, mate
A dealership might spruik 5.99% but the comparison rate is 8.5% after they've crammed in all their sneaky fees. The comparison rate bundles the interest plus most fees into one number — so you can actually tell if it's a ripper or a rort.
🦆 Pro Tip: If they dodge the comparison rate question, walk.
Not A Wood Duck
notawoodduck.com
Extra repayments are a weapon
Turns out giving the bank the bird feels incredible
Chucking an extra $50 a fortnight at a $30,000 loan at 7% over 5 years saves you about $1,800 in interest and shaves nearly a year off your loan. The earlier you start, the more you save — because interest is calculated on whatever's left.
🦆 Pro Tip: Check your loan allows extra repayments without penalty first.
Not A Wood Duck
notawoodduck.com
A bigger deposit = less bank pain
Groundbreaking stuff, we know — but here's the maths
Every extra dollar you put down upfront is a dollar you're not paying interest on for 5-7 years. A 20% deposit on a $35,000 car saves you around $3,500 in interest versus a 5% deposit. That's a holiday to Bali with change left for a carton.
🦆 Pro Tip: Aim for at least 20% deposit. Future you will be stoked.
Not A Wood Duck
notawoodduck.com
Your trade-in is worth more than they say
Dealers make money twice — on the new car AND your old one
A dealer offering you $15,000 for your trade-in might list it for $22,000 the next week. That's $7,000 in their pocket before they've even sold you the new car. Always check your car's market value on Carsales and RedBook before walking in.
🦆 Pro Tip: Get your trade-in valued independently BEFORE visiting the dealer.
Not A Wood Duck
notawoodduck.com
Negative equity is a debt spiral
Rolling old debt into a new loan — the dealership's favourite party trick
If you owe $20K on your current car but it's only worth $15K, that's $5K of negative equity. Dealers love 'solving' this by rolling it into your new loan. Now you're paying interest on your old debt AND your new car. It compounds faster than a hangover on a bucks night.
🦆 Pro Tip: Pay down your current loan before upgrading. Don't let debt snowball.
Not A Wood Duck
notawoodduck.com
Fixed vs variable — what's the go?
Your sanity vs your wallet. Choose wisely, legend
Fixed rate means your repayments stay the same — great for budgeting, peace of mind. Variable means they can go up OR down. For most Aussies, fixed is the safer bet for a car loan. Only go variable if you can handle repayments jumping $80-100 a month without breaking a sweat.
🦆 Pro Tip: If rate rises would stress your budget, lock in a fixed rate.
Not A Wood Duck
notawoodduck.com
Dealer warranties — you're paying twice
Bundled into your loan at interest. Cheeky as.
That $2,500 extended warranty the dealer's pushing? If they bundle it into your loan, you're paying interest on it for 5-7 years. That 'bargain' warranty just cost you $3,500. And half the time it barely covers anything useful. Read the fine print, cobber.
🦆 Pro Tip: Buy warranties separately with cash, not rolled into your loan.
Not A Wood Duck
notawoodduck.com
Share these with your mates
Every screenshot shared is one less wood duck walking into a dealership blind. You're doing the Lord's work, legend. 🦆