Buying a car is a big deal and for most of us, it’s not something we can do with cash.

You know what that means: getting a loan. But it doesn’t have to be a stressful situation. If the rules of car financing leave you confused, don’t worry, I’ve got you covered.

Here’s how to hit the road without breaking the bank or getting surprised by hidden fees and high interest rates.

When it comes to car financing, you need to consider some of the usual (and some not-so-usual) suspects.

Dealer Financing: Dealer financing is undoubtedly the most convenient option. You choose your car and settle your finances on the spot. But convenience can come at a price. While some dealers may offer competitive interest rates, especially during EOFY sales or seasonal promotions, they can also be a bit dodgy with fees that are too high or terms that lock you into specific services. Always read the fine print and don’t be afraid to negotiate (or walk away altogether).

Personal loan: Getting a personal loan from your bank or a lender gives you a lot more flexibility, but you may have to jump through a few more hoops. The good news is that you can shop around for a decent interest rate, compare fees, and even pay off the loan sooner if you earn extra money.

Novated lease: A novated lease is a three-way agreement between you, your employer and a finance company. Don’t worry, it’s much simpler than it looks. Your employer makes payments directly from your pre-tax salary, which can be tax efficient and convenient. Just be aware that if you change jobs, you might find yourself dealing with the lease on your own.

Green car loans: If you’re considering going electric, eco-friendly car loans are worth investigating. They generally have interest rates low enough to encourage eco-friendly choices, and with the growing electric vehicle trend in Australia, more lenders are jumping on the green lending bandwagon.