Car loans for MG vehicles

MG stands for Morris Garages, which was the brand’s original name when it was founded in Britain in the 1920s. Once known for classic sports cars, today MG is a popular vehicle brand in Australia, with selected MG models being among the nation’s best-selling cars.

MG has gone through several mergers and acquisitions over its history. MG is today owned by SAIC Motor UK, which itself is owned by Shanghai-based Chinese state-owned SAIC Motor.

MG models currently available for sale in Australia include:

• MG 3 Auto Hatchback
• MG 4 electric Hatchback
• MG 5 sports sedan
• MG HS SUV
• MG HS +EV SUV
• MG ZS SUV
• MG ZST SUV
• MG ZS EV SUV

Variants are available for several of these models, often adding extra features and benefits compared to the core design.

While MG is historically known for sports cars, today it tends to lean more towards entry-level vehicles rather than top-end luxury models. These relatively affordable vehicles can help Australian families enjoy improved value for money.

According to carsguide.com.au at the time of writing, 2023 MG vehicles are available at prices between:

• MG HS: $29,990 and $49,990
• MG HS +EV: $46,990 and $50,990
• MG 3 Auto Hatchback: $17,490 and $19,490
• MG ZS: $21,990 and $22,990
• MG ZS EV: $43,990 and $55,990
• MG ZST: $24,990 and $33,990

Whether you’re looking for an affordable MG electric car or petrol-powered vehicle, you may still need finance to afford your car purchase. You may be offered dealer finance if you’re buying a new or used MG from a car yard, but there may be other car loan options that are also worth considering.

By using the value of the new MG car you’re buying as collateral, you may be able to get a lower interest rate on your secured car loan. That said, if you don’t keep up with your repayments, you risk losing your car if you default. Also, some older used cars may not retain enough value to be used as collateral for a car loan, so you may need to consider using an alternative asset as your security, such as equity in a property or savings in a term deposit. 

Unsecured car loans don’t require security, so you don’t need to put your car or other assets at risk. There are also fewer restrictions on the type of vehicle you’re buying, so you should be able to easily use one to buy an older used MG car. However, unsecured car loans often have higher interest rates than their secured counterparts, so you could end up paying more in interest charges, making your relatively affordable MG cost more than you intended.

To help avoid being caught out by surprises when setting your car loan budget, you can use a car loan calculator to estimate your car loan payments, and also the total cost of a car loan over the long term.  This could help you plan your budget in advance and give you a better idea of what to expect when you buy an MG.

Remember that if you choose an MG electric car, you may be eligible for a green car loan. While these car loans can only be used to purchase eco-friendly vehicles, they often have relatively low interest rates, which could help you save some money.

Finally, if you’ve struggled with borrowing and repaying money in the past, your low credit score could make it harder to be approved for a low rate car loan when buying an MG. Taking some time to improve your credit score before applying may help make your car loan application go a little more smoothly.