Lender

VariableNew1 yearMore details
NO ONGOING FEES
  • Unlimited extra repayments
  • Flexible repayment options
  • Can apply online
  • You could win a $1,000 fuel gift voucher. Open to customers who settle a car loan with loans.com.au. Terms and conditions apply.
NO ONGOING FEES

New - Prime Special

  • Unlimited extra repayments
  • Flexible repayment options
  • Can apply online
  • You could win a $1,000 fuel gift voucher. Open to customers who settle a car loan with loans.com.au. Terms and conditions apply.
FixedNew, Used99 yearsMore details
APPLY ONLINE
  • No ongoing fees
  • No early exit penalty
  • Flexible repayment options
APPLY ONLINE

Car Loan

  • No ongoing fees
  • No early exit penalty
  • Flexible repayment options
FixedNew2 yearsMore details
NO ONGOING FEES
  • No ongoing fees
  • No early exit penalty
  • Apply online
NO ONGOING FEES

New Car Loan

  • No ongoing fees
  • No early exit penalty
  • Apply online
FixedNew2 yearsMore details
QUICK APPLICATION PROCESS WITH NO FEES
  • Quick application process and no monthly fees
  • Low fixed interest rates with terms of up to seven years
  • New car loans cover cars up to 3 years old
QUICK APPLICATION PROCESS WITH NO FEES

New Vehicle Fast Loan Low Rate

  • Quick application process and no monthly fees
  • Low fixed interest rates with terms of up to seven years
  • New car loans cover cars up to 3 years old
FixedNew, Used7 yearsMore details

Secured Car Loan Fixed

    FixedNew, Used5 yearsMore details

    Car Loan - Fixed

      FixedNew99 yearsMore details

      New Car Loan (NSW, ACT & QLD only)

        FixedNew, Used10 yearsMore details

        (5 Years)

          FixedNew, Used5 yearsMore details

          Fixed Car Loan (with Low Emission Vehicle discount)

            FixedNew, Used7 yearsMore details
            No ongoing fees
            No ongoing fees

            Plenti Car Loan (Refinance)

              FixedNew, Used99 yearsMore details

              Liberty Drive Car Loan (Excellent Credit History)

                FixedNew5 yearsMore details

                Fixed Car Loan (New)

                  FixedNew, Used99 yearsMore details

                  Car Loan

                    FixedNew, Used99 yearsMore details

                    Personal Loan Fixed

                      FixedNew, Used5 yearsMore details

                      Secured Car Loan

                        VariableNew1 yearMore details
                        APPLY ONLINE
                        APPLY ONLINE

                        Electric and Hybrid Car Loan

                          *Comparison rates based on a loan of $30,000 for a five-year loan term. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of May 25, 2022. View disclaimer.

                          Car loan lender reviews

                          loans.com.au Car Loans OMM Car and Personal Loans Review NRMA car loans review Plenti Car Loans Review SocietyOne Personal & Car Loans IMB Car Loans

                          What is a car loan and how does it work?

                          A car loan is a sum of money you borrow from a lender for the purpose of buying a vehicle. Like most loans, you pay back a car loan and its associated interest costs through regular repayments over an agreed period of time.

                          jake-ute-car-loan.png

                          Car Loan Example

                          Jake get a ute

                          Jake wants to buy a $30,000 Toyota Hilux with $5,000 of his savings and a $25,000 car loan. He’s approved for a five-year loan at an interest rate of 5.00% p.a. with repayments of $472 per month and an upfront establishment fee of $400. Over the five year loan term, he will pay $33,707 for the Hilux, which includes:

                          • $5,000 of his savings
                          • $25,000 car loan
                          • $400 car loan establishment fee
                          • $3,307 in interest

                          Marie Mortimer

                          Marie Mortimer

                          Director,
                          loans.com.au

                          Do your research, choose an honest & transparent lender.

                          When it’s time for a new car, you might think it’s worth paying an extra percent or two at the dealership to get the car sooner - but we assure you that is not the case.

                          Many lenders, particularly online lenders like us, offer car loan pre-approval, and far lower interest rates than dealerships, potentially saving you hundreds, if not thousands on your car finance. Some can even turn around an approval and settlement for you in record time, so there’s no reason not to head to the dealership with your finance sorted so you’re prepared to buy.

                          Our top tip - always read through the fine print and opt for someone transparent and honest to help you with your car loan.

                          How to choose a car loan

                          Here are some of the top things to consider when choosing a car loan:

                          Interest rate

                          Interest is the biggest cost of a car loan and is the rate you're charged per year on the outstanding loan balance.

                          Interest rates are either:

                          • Fixed rate: The interest rate remains the same for the duration of the fixed term
                          • Variable rate: The interest rate changes at the lender’s discretion

                          Loan period

                          The loan period of a car loan is usually between 1-7 years. The longer the loan, the smaller the repayments, but the more interest you will pay overall.

                          Repayments

                          Repayments are usually repaid monthly, however depending on which lender you choose you may have the flexibility to make repayments fortnightly or weekly.

                          Fees

                          Be aware of the fees charged by your lender, these often include:

                          Establishment fee

                          • Ongoing Maintenance fee
                          • Break fees
                          • Discharge fee
                          • Late payment fee

                          Compare fees between lenders to save on your loan. Try using the comparison rate as a guide, because the comparison rate is designed to reflect the cost of the loan in terms of interest and fees.

                          Balloon payment

                          A balloon payment is a 30-50% lump sum repayment of the loan that some borrowers opt to pay at the end of the loan term.

                          Balloons allow you to make smaller repayments over the loan term, but cost you more in interest.

                          Frequently Asked Questions

                          Car loans and dealer finance can be acceptable methods of car financing, so long as you do your due diligence and shop around. Dealer finance can often have faster approval times and lower interest rates compared to car loans, but they can also be less flexible and more restrictive. If you're torn between the two, consider walking into a dealership with a pre-approved car loan under your belt and negotiating with the dealer to see if they can offer a better rate. For any type of car financing, be sure to take all the fees into account and look at what the total cost of the finance would be at the end of the term.

                          A secured car loan is one where an asset (the car you’re buying) is used as collateral against the loan, and can be reclaimed by the lender if repayments aren't met. Unsecured car loans do not use your car as security. Secured car loans are generally less risky for lenders to provide than unsecured car loans, so they often have lower interest rates. Read more about secured vs unsecured car loans!

                          If you have bad credit, you can boost your chances of being approved for a car loan by: being realistic in your expectations & picking a modest car, being honest in your application, save some money beforehand, obtain stable employment, and clean up existing debts. Also work towards improving your credit history beforehand by paying bills and credit card repayments on time.

                          Your eligibility for a car loan will depend on a variety of factors such as: the car model, whether the car is new or used, the lender and the loan you're applying for, your income, your credit rating and history, your assets and liabilities, and your history of savings. Having a bad credit rating doesn't disqualify you from getting car loans, but you might find it harder to get a good one.

                          Basic car loan requirements often include:

                          1. Proof of a steady, reasonably high income
                          2. Proof of identity: driver's license, Medicare card, passport etc.
                          3. Proof of residence
                          4. Proof of your ability to save money (try three-six months)
                          5. Proof of your assets (like shares) and liabilities (like credit card debt)

                          Not having these on hand could reduce or eliminate your chances of having a loan application approved.

                          There can be many ways to get a low-interest car loan, but one of the best ways could be to maintain a clean credit history. This tells lenders you're a trustworthy borrower, making them more likely to give you a good interest rate. Also, don't forget to shop around to see which lender's are offering the lowest rates. Secured car loans also tend to have a lower interest rate than unsecured loans.

                          There are lots of different car loan terms available, but most reputable lenders will allow terms between one and seven years, with 10 years usually the maximum. Your car loan term is how long it would take to pay off the car loan without any extra repayments.

                          Yes, you can refinance your current car loan to a different car loan with different terms, or a different lender with a lower interest rate. When refinancing a car loan, the money borrowed from the new loan will cover the balance of your previous car loan, allowing you to pay off that old car loan before moving onto the new one.

                          Car loans can be both secured and unsecured, but the majority of them are secured, meaning the car is used as security against the loan. Should you fail the repay the loan, the car can be repossessed by the lender. Unsecured car loans (which are essentially personal loans) don't have the car as a security, but tend to come with higher rates to compensate for this.

                          A pre-approved car loan can be beneficial as it lets you know what you can afford before you go out to buy a car. To get a pre-approved car loan:

                          1. Compare car loan providers to make sure you’ve found the right one
                          2. Check your credit rating before applying
                          3. Gather all of the necessary documents (100 points of ID, income, proof of employment, assets and liabilities etc.)
                          4. Contact your chosen lender and tell them you want to apply for pre-approval