Buyers Win In Car Loan Rate War
Sun Herald
Sunday February 16, 1997
CAR BUYERS are set to benefit from the interest rate wars with Australia's cheapest home lender moving into cut-price vehicle loans.
ANZ has launched Direct Car Loans - offering an average rate of 10.5 per cent- which will be available over the phone.
Last week The Sun-Herald exclusively revealed ANZ Direct Home Loans would offer a no-frills home loan rate of 6.9pc.
This sparked a home mortgage war, with the Commonwealth Bank cutting its Economiser rate to 6.95pc, followed by the National Australia Bank and Colonial State.
Other banks are expected to follow suit this week in what could lead to a shake-out of lenders.
ANZ Direct's move into car lending is set to spark a car interest-rate war in the $8 billion car-finance market.
ANZ chief executive Don Mercer said the car loans would be backed by Esanda, the largest supplier of car finance in Australia.
The 10.5pc rate is for a five-year fixed-rate loan, using the car as security.
ANZ said the rate would be available in NSW within months.
© 1997 Sun Herald
