carclarity.com.au Pricing

Carclarity.com.au doesn’t directly charge users for its comparison service; its revenue model is primarily based on commissions from the lenders it partners with. However, it’s crucial to understand the broader pricing implications of the loans themselves, which are inherently interest-bearing.

Direct Costs of Using the Comparison Service

There are no direct fees or charges for the user to access CarClarity’s comparison service and receive loan matches. The website clearly states that it’s a “free” service for the consumer to compare loan options. This is a standard model for many online comparison platforms.

How CarClarity Generates Revenue

CarClarity’s business model is explicitly outlined in its disclaimers: “CarClarity may receive a commission from lenders we recommend.” This means that when a user successfully obtains a loan through one of CarClarity’s recommended lenders, CarClarity receives a referral fee or commission from that lender. This is a common and transparent practice in the financial comparison industry. This commission is typically factored into the lender’s overall cost of acquisition, rather than being an additional charge on top of the loan for the borrower.

Understanding Loan Interest Rates

The primary “cost” associated with using CarClarity’s facilitated loans is the interest rate charged by the lenders. These rates can be:

• Fixed Interest Rates: The interest rate remains constant throughout the loan term, providing predictable repayments.
• Variable Interest Rates: The interest rate can fluctuate over the loan term, moving up or down based on market conditions or changes in the Reserve Bank of Australia (RBA) cash rate.

CarClarity aims to find “competitive car loan rates” by comparing across 40+ lenders. These rates will vary significantly based on:

• Your Credit Score: Higher credit scores typically qualify for lower interest rates.
• Loan Amount and Term: Larger loans or longer terms might have different rate structures.
• Vehicle Type: New cars generally attract lower rates than older or riskier vehicles.
• Secured vs. Unsecured: Secured loans (where the car is collateral) usually have lower rates than unsecured loans.
• Lender’s Policies: Each lender has its own risk assessment and pricing models.

It’s important to remember that from an Islamic perspective, any interest rate, regardless of how “competitive” it is, makes the loan impermissible. swaggle.com.au Returns Policy Explained

Potential Additional Fees from Lenders

Beyond the interest, borrowers should anticipate various fees and charges levied directly by the lenders, as discussed previously. These include:

• Establishment fees.
• Monthly service fees.
• Late payment fees.
• Early repayment fees (though some lenders offer fee-free early exit).

These fees are separate from CarClarity’s commission and directly impact the overall cost of the loan for the borrower. It’s crucial for users to request and scrutinise a comprehensive Key Facts Sheet or loan contract before committing to any offer to understand all associated costs.

Total Cost of Ownership Considerations

When evaluating a car loan from an Islamic perspective, the “price” is not just the sticker price of the car or the monthly repayment. It includes the total amount of interest paid over the life of the loan. For example, a $30,000 car loan at 8% interest over 5 years could result in over $6,500 in interest payments, making the total cost of the car nearly $36,500. This additional cost, which represents Riba, is the core issue that makes such loans ethically unviable for Muslims. In Sharia-compliant finance, the cost to the borrower is a pre-agreed profit margin for the financier, not interest that compounds over time.