What is a Comparison Rate?

As the owner of a car dealership, friends often ask me this question.  The general feeling is that it’s some type of spin in a car ad.  Actually it’s quite the opposite.  Car advertising which involves the promotion of vehicle finance must, by law, include the comparison rate which relates to the particular finance deal being advertised.

The comparison rate does exactly as it suggests, it allows consumers to accurately compare the finance deal, by forcing the advertiser to include all components of the finance contract which may ultimately effect what the consumer pays over the life of the loan.  For example, this prevents promotion of a very low interest rate to make an offer look attractive, but then stacking the loan with fees and charges which push up the payment to the consumer and the income to the financier.

A Comparison rate takes into consideration the loan term, the interest rate, payment frequency as well as upfront and ongoing fees, to arrive at a percentage rate which a consumer can compare easily to other finance offers, i.e. they are all calculated the same way.  For the purposes of arriving at the Comparison Rate, the calculation assumes the loan amount will be $30,000 for all loans, so that all Comparison rates are calculated equally.

Legal guidelines published by regulators suggest that where a car is being advertised with a finance component, the ad should include the drive away price of the car and the comparison rate.  These elements should be easily visible and obvious to a private consumer viewing the advert.

The fine print of the ad must contain other important elements such as the breakdown of fees and charges in the finance contract, the term of the offer and other important details calculated into the finance contract such as the deposit amount, if any, and the term of the loan.


 

Why does my oil turn black just after a service of my diesel?

So your car has been in for a scheduled service and running beautifully after the exercise. A week later while you are washing the car, you pop the hood, and causally have a little look around, just to make sure mind you, that your mechanic has actually done what he said he had.
After all, looking under the hood or kicking a tyre is almost part of our DNA now. Along with being deeply suspicious of your mechanic.

Now, even a decade ago you could really have a nose around – checking the filters and spark plugs, peering into the alternator and pushing and prodding whatever else you could get your fingers into.
Modern vehicles, however, offer limited access to this playground.
But the dipstick is still reachable, so oil check it is.
You juggle the stick around, pull it out and peer at it intently, hoping to impress any on-lookers with your mechanical prowess.
The oil level is perfect, but hey, it doesn’t look as clean as you think it should be.

Now before you bang the hood shut and storm off to accuse your mechanic of every indiscretion under the sun, hold on to your horsepower for just a second.
If your car is a diesel, black oil, even this soon after a service is perfectly normal.
The oil in your engine is there for three main reasons – to lubricate the moving metal parts reducing friction, to help in cooling by transferring the heat from the metal components to the sump and to clean the engine of the carbon deposits that can hinder performance.
It is the latter that is behind your oil turning black.
Diesel combustion engines produce much more soot (partially burnt fuel) and sludge as part of their normal operation than their petrol counterparts.

The modern trend for direct engine systems compounds the problem because while the higher fuel injection pressures in newer diesel engines produce lower exhaust emissions, it increases the production of soot.
The soot forms in cooler parts of the combustion chamber until it impinges on the cylinder wall and is scraped into the oil sump courtesy of the pistons leading to a faster blackening of the oil.
The particles are so tiny that they are able to escape the oil filter irrespective of how new or good the filter is.
Every vehicle, provided it has been run in, has some carbon build-up in the engine with the amount increasing with the number of kilometres on the clock.

So when your mechanic changes the oil in your car, the golden amber liquid is quickly darkened by the residual oil and carbon build-up in the engine. The high soot production, part of the everyday running of the car, takes care of the rest and within a few days that lovely new oil can look rather dirty.
That change in colour is a sign that the oil is actually doing its job.


 

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Terms and Conditions

 

[A8] Recommended drive away pricing is applicable for Private, Bronze and Silver fleet customers, and primary producers only at participating dealers. Offer available on vehicles produced March 2017 to July 2017 and purchased by 30/06/2017 or while stocks last.

[G2] Hill-start Assist Control is a driver assist technology and should not be used as a substitute for safe driving practices.

** 0% comparison rate available to approved personal applicants and a 0% annual percentage rate is available to approved business applicants of Toyota Finance to finance eligible Camry Petrol and Aurion demonstrator vehicles. Excludes Camry Hybrid. Finance applications must be received and approved between 01/04/2017 and 30/04/2017. Maximum finance term of 48 months applies. Terms, conditions, fees and charges apply. Toyota Finance reserves the right to change, extend or withdraw an offer at any time. Comparison rate based on a 5 year secured consumer fixed rate loan of $30,000. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Toyota Finance is a division of Toyota Finance Australia Limited ABN 48 002 435 181, AFSL and Australian Credit Licence 392536.

[A0] Recommended drive away pricing includes metallic paint. Offer available only at participating dealers on demo vehicles produced April 2015 to December 2016 and purchased by 30/04/2017 or while stock lasts. Recommended drive away price shown includes the balance of vehicle's current registration, compulsory third party insurance (CTP), a maximum dealer delivery charge and stamp duty.

[B5] The Bluetooth® word mark is owned by The Bluetooth SIG, Inc. Not all devices will be compatible and functionality will vary depending on the device.

[B4] This is a driver assist feature only and not a substitute for safe driving practices. Driver remains responsible at all times for safe driving.

[N1] Current navigation mapping database encompasses major capital and primary national road networks as well as offering some coverage of regional areas.

[TL1] Toyota Link is available on certain vehicle models and grades only. Toyota Australia reserves the right to add, remove or modify applications. Toyota Link services rely on data from the driver's compatible mobile phone and information provided by third parties. Availability is dependent on a number of factors, including the availability of third party information, mobile service, sufficient mobile data allowance and GPS satellite signal reception. Mobile usage is at the user's cost. Compatibility with smartphones will vary according to model and operating system. Further information is provided at http://www.toyota.com.au/toyotalink

~ Primary Producer only offer includes one Premium Steel Bull Bar and dealer fitment. For more information, please speak with your dealer. Excludes Silver Fleet customers.

† Offer applicable for Private, Bronze and Silver fleet customers, and primary producers only at participating dealers. Offer available on 2017 vehicles purchased by 30/4/2017 unless extended. Accessories must be ordered at time of purchase unless otherwise agreed with Dealer. Total bonus includes cost of dealer fitment for accessories. Certain grades of vehicle may be subject to Luxury Car Tax. Toyota Genuine Accessories are not applicable to all models/grades. Consider the mass of your load to ensure you will not exceed the maximum allowable individual axle capacity, Gross Vehicle Mass and/or Gross Combined Mass of the vehicle. Refer to the current Accessories brochure or visit www.toyota.com.au for details on warranty and toyota.com.au/vehiclepayload for details on vehicle payload, to help determine Accessories suitable for your vehicle. Accessory colours shown in brochures may vary from actual colour due to the printing process.

+ Recommended drive away pricing includes metallic paint and is applicable for Private, Bronze and Silver fleet customers, and primary producers only at participating dealers. Offer available on 2017 vehicles purchased by 30/04/2017 unless offer extended.

^ Offer applicable for Private, Bronze and Silver fleet customers, and primary producers only at participating dealers. Offer available on 2017 vehicles purchased by 30/4/2017 unless offer extended. Free On Roads includes 12 months registration, 12 months compulsory third party insurance (CTP), a maximum dealer delivery charge and stamp duty.

[A] Recommended drive away pricing is applicable for Private, Bronze and Silver fleet customers, and primary producers only at participating dealers. Offer available on 2017 vehicles purchased by 30/04/2017 unless offer extended.

[A4] Recommended drive away pricing includes metallic paint and is applicable for Private, Bronze and Silver fleet customers, and primary producers only at participating dealers. Offer available on demo vehicles purchased by 30/04/2017 or while stock lasts. Recommended drive away price shown includes the balance of vehicle's current registration, compulsory third party insurance (CTP), a maximum dealer delivery charge and stamp duty.

* 0% comparison rate available to approved personal applicants and a 0% annual percentage rate is available to approved business applicants of Toyota Finance to finance eligible Camry Petrol and Aurion vehicles. Excludes Camry Hybrid. Finance applications must be received and approved between 01/03/2017 and 30/04/2017. Maximum finance term of 48 months applies. Terms, conditions, fees and charges apply. Toyota Finance reserves the right to change, extend or withdraw an offer at any time. Comparison rate based on a 5 year secured consumer fixed rate loan of $30,000. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Toyota Finance is a division of Toyota Finance Australia Limited ABN 48 002 435 181, AFSL and Australian Credit Licence 392536.

[A5] Recommended drive away pricing includes metallic paint and is applicable for Private, Bronze and Silver fleet customers, and primary producers only at participating dealers. Offer available on vehicles produced October 2016 to April 2017 and purchased by 30/04/2017 unless offer extended.

[A3] Recommended drive away pricing includes metallic paint and is applicable for Private, Bronze and Silver fleet customers, and primary producers only at participating dealers. Offer available on vehicles produced January 2016 to April 2017 and purchased by 30/04/2017 unless offer extended.

[A2] Recommended drive away pricing includes metallic paint and is applicable for Private, Bronze and Silver fleet customers, and primary producers only at participating dealers. Offer available on vehicles produced January 2016 to October 2016 and purchased by 31/03/2017 or while stock lasts.