You can use our free car loan comparison tables to compare car loan products from reputable Australian lenders and banks. Our free resources are available to help you learn about selecting a car loan, from choosing the type of loan to comparing interest rates and added features. Compare rates and save on your car loan with comparecarfinance.com.au.
Lender | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Fixed | New | 99 years | N/A | More details | |||||||||
New Car Loan (Fixed) (3 Years) | |||||||||||||
Fixed | New | 99 years | N/A | More details | |||||||||
New Car Loan (3 Years) | |||||||||||||
Fixed | New, Used | 99 years | N/A | More details | |||||||||
Car Loan (3 Years) | |||||||||||||
Fixed | New | 99 years | N/A | More details | |||||||||
Secured Fixed Personal Loan (new asset) (3 Years) | |||||||||||||
Fixed | New, Used | 99 years | N/A | More details | |||||||||
Secured Loan (3 Years) | |||||||||||||
Fixed | New | 99 years | N/A | More details | |||||||||
Fixed Rate Car Loan (3 Years) | |||||||||||||
Fixed | Used | 99 years | N/A | More details | |||||||||
Fixed Rate Car Loan (Used) (3 Years) | |||||||||||||
Fixed | New, Used | 99 years | N/A | More details | |||||||||
Secured Fixed Car Loan (3 Years) |
All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.
The comparison rates in this table are based on a loan of $30,000 and a term of 5 years unless indicated otherwise. The comparison rates for car loans and secured personal loans for the relevant amounts and terms are for secured loans unless indicated otherwise. The comparison rates for unsecured personal loans are applicable for unsecured loans only.
WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products.
Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for the term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes. Rates correct as of March 18, 2025. View disclaimer.
Powered by:
Savings.com.au
Savings.com.au Pty Ltd ACN 161 358 363 | Australian Financial Services Licence and Australian Credit Licence 515843
Car loans are a great option to consider to help you buy a car. You will be able to purchase a car sooner, and won’t need to pay out of pocket or take time saving enough money.
When you buy a car, it’s important to understand the total cost including the interest you will pay, and any fees you may occur. Here are some handy things to check when comparing different car finance options to find a loan suitable for you.
The interest rate is typically the first thing that many of us look at when comparing car loans. Interest rates can impact your regular repayment amount and overall amount you pay back over the life of the loan.
There are two types of interest rates interest rate options available for car loans - variable and fixed. A variable rate loan means your interest rate is likely to change according to the RBA and your lender’s funding costs which will impact your regular repayments.
On the other hand, a fixed rate loan will remain unchanged during its fixed rate term, regardless of any rate changes in the RBA or your lender.
One of the most important things to look out for is the comparison rate which is slightly different from the standard interest rate. The comparison rate shows the true cost of a loan, including both the interest rate and any fees and charges the loan incurs.
Looking at the comparison rate gives you a more accurate representation of the cost of the loan, which can be very helpful when comparing different car finance rates.
The loan term of a car loan is usually offered between 1 to 7 years. A longer loan term can give you the benefit of cheaper repayments but the overall loan amount will be higher as you will be paying interest on your loan for a longer period of time.
If you opt for a shorter loan term, you can expect to make higher regular repayments compared to a longer loan term, but the overall loan amount will be lower because you will be paying it off in a shorter amount of time.
Determining your borrowing power will depend on factors such as how much you earn, your monthly expenses, and your credit rating. The lender that finances your car will want to ensure you can make the repayments on your new loan without any troubles.
You can use our car loan repayment calculator to easily get an idea of what your car loan repayments would look like. You can enter the interest rate, loan term, and loan amount to give you a rough estimate of what your regular repayments might be.
If you want to have a smaller loan repayment, a balloon payment can be a great option. This will give you a more affordable repayment because you will pay a lump sum amount at the end of the loan term. The lump sum is usually around 30-50% of the borrowed amount.
Different lenders will each have different fees and charges, and you should keep these in mind when comparing your car finance options. These can include:
These fees are included in the calculations of comparison rates. If the comparison rate is higher than the lender’s advertised rate, this can indicate that the loan has high fees.
The cost of buying a new or used car doesn’t end with loan repayments. Here are some of the additional costs of buying and owning a car in Australia:
.
There is eligibility criteria to qualify for car finance. Basic criteria includes being 18 years old or above, living in Australia as a permanent resident and be employed or earning a regular income.
Your credit score can also impact your eligibility for a car loan. A credit score is a representation of your behaviour as a borrower. The score is based on your past financial credit history. This is used by lenders to measure how reliable you are as a borrower, and how capable you are to pay back a loan.
Generally, a higher credit score can give you a greater chance of getting approved for a car loan and can potentially help you secure a lower interest rate. To find out what your credit score is, you can visit Australia’s major credit providers such as Eperiam, Equifax, or Illion.
A good credit score to buy a car, if the credit report has a scale of 0-1000 is above 500. If the score is above 650 it is considered to be excellent. If the credit report has a scale of 0-1200, then 650 is considered to be a good rating.
To improve your credit score, you can start by paying off your loans and bills on time, paying off unpaid debts, reducing the amount of credit applications or enquiries you make and lowering your credit limit.
There are a set of documents you will need to prepare before applying for a car loan, including:
There are multiple ways you can apply for a car loan. Depending on the lender, you may be able to apply online, via phone or in person.
If you’re not comfortable to complete forms online, an in-person application with a bank may be the most suitable option.
Applying for a car loan over the phone or online may be the more convenient and hassle-free than doing it in-person. Many lenders can provide online pre-approval applications, which lets you know how much you can afford when you are buying a new or used car.
There are a myriad of different car finance options that can be suitable to your unique financial situation as well as the type of vehicle you are planning to get.
A fixed rate car loan will have the same rate for the duration of the loan term, which means your regular repayments will stay the same. This means if your lender either increases or decreases their rates due to market changes, or lending cost changes, your interest rate will remain unaffected, providing you with peace of mind with repayment security.
A variable car loan’s interest rate may fluctuate when there are changes in the market. The upside is that you are able to take advantage of decreased repayments if the rate drops, helping you save money. A variable car loan is generally more flexible compared to a fixed car loan, with many variable car loans allowing redraw.
With a secured car loan, the car lender will take the car as collateral against the loan, for security. If you are unable to repay the loan, the lender can repossess the car and sell it to recoup lost money. A secured car loan usually has a lower interest rate since this makes the car loan less risky to the lender.
Unsecured car loans don't have any collateral attached to the loan and are usually given to borrowers that have an excellent credit score. Unsecured loans are more common for home repairs and upgrades, since there are nothing can be used as collateral. However, there are still some car lenders that can offer unsecured car loans.
A chattel mortgage is a secured loan generally used by business owners. For instance, if you need a ute to transfer equipment for your business, a chattel mortgage may be a great option to consider.
A novated lease is provided by the company or business as an employee benefit. The repayments are made by deducting it from the employee’s salary. The car is not owned by the employer or a leasing company.
A car lease is where the car is owned by the car financier, so neither the business nor the individual owns the car. The financier leases the vehicle for a period of time with fixed monthly instalments. At the end of the lease term, the borrower can buy the vehicle by paying the residual value. It is also possible to lease the car again.
New car loans are generally available for cars that are less than 5 years old.
Used car loans are available for older cars, generally up to 12 years of age. A pre-owned car or secondhand car can be considered as a used car.
Many lenders offer lower interest rates for going green. To qualify for a green car loan, the vehicle must be an electric car or a hybrid car.
There are a many ways you can finance a new car. You can use your savings account, opt for a novated lease, redraw on your home loan or get a personal or car loan.
Whether you’re financing for a new or used car, a car loan is the most common option. A car loan lender will let you borrow money to buy a car, and you will be required to pay back the money weekly, fortnightly or monthly over an agreed term with an interest rate.
You can use a car loan calculator to find out how much your repayments may be as well as the overall amount you will end up paying back over the life of your loan.
Here are the pros and cons of getting car finance from a dealer vs a lender:
A used car loan is used when you are buying a used or secondhand car. Similar to a new car loan, a lender will allow you to borrow money with interest rate which you will need to repay over a set period of time.
The main difference between new and used car loans is that a used car loan is specially designed for older vehicles. A car is considered to be ‘used’ when the vehicle has been previously registered by another person.
You can source to finance your used car from a bank or lender and will usually finance used cars up to 12 years old. Similar to a new car loan, you can also choose between a fixed or variable rate and secured and unsecured loan.
You can get a car loan pre-approval before going to a car dealership. Getting pre-approved can make the car buying process a lot quicker because you’ll already know borrowing capacity.
You can get pre-approval online from lenders where they will assess your assets and liabilities, as well as your credit score.
You may be able to negotiate with the dealer on the car price, and there is less possibility of getting a dodgy deal. Having a budget already in mind can make car shopping a lot easier.
If you’re considering buying a car, here’s are the first few things you should do:
If you already have a specific car in mind, and you know where you can buy a car, here are some useful tips during the purchasing process:
Before you drive away with your new vehicle, here are important things you should keep in mind:
If you’re buying a car from a private seller, you can still get finance by applying for a car loan. It’s also possible to get a personal loan to purchase a car.
You can find out the lowest interest rate by using a comparison site. There are car loans rates from lenders in Australia starting as low as 2.85%
The average car loan rate in Australia is between 5% to 17%. A lower interest rate car loan will result in a lower repayment and lower total loan amount.
Your borrowing power will depend on your income and expenses. Lenders will want to see if you have the capacity to service the loan. You can use a borrowing calculator to find out your borrowing capacity when buying a car.
It’s best to do your research before the negotiation, and know the average price of the vehicle. You may want to consider buying a car at end of the financial year, since dealers will want to hit target sales before the financial year ends so you may get a cheaper car.
To secure a low interest rate, it’s best to improve your credit score. You can do this by paying your loans and bills on time, limiting new credit applications, and lowering your debt.
Car dealers may offer low interest rates to attract buyers, but a very low rate may come with additional upfront and ongoing fees. Obtaining finance from a car loan lender can be a good option for finance to secure low rates with affordable fees.