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LenderCar LoanInterest Rate Comparison Rate* Monthly Repayment Interest Type Vehicle Type Maximum Vehicle Age Ongoing Fee Upfront Fee Total Repayment Early Repayment Instant Approval Online Application TagsFeaturesLinkCompare
6.57% p.a.
7.19% p.a.
$920
Fixed
New
No Max
$0
$250
$33,135
Featured Loan amounts from $2k to $75k
  • Available for any new motorised vehicle
  • No ongoing or early exit fees
  • 1-7 years loan terms. Pay monthly, fortnightly, or weekly
  • Get quick decision. Funds in 24 hrs if approved
6.24% p.a.
7.36% p.a.
$916
Variable
New
1 year
$8
$400
$32,973
  • Available for purchasing new and demo vehicles
  • $5,000 to $150,000 loan amount
  • Redraw facility available up to $5000/day
  • Required: Good credit history, stable employment history. Aus citizenship or PR.
6.49% p.a.
6.84% p.a.
$919
Fixed
New, Used
7 years
$0
$250
$33,096
7.09% p.a.
8.21% p.a.
$928
Fixed
New
1 year
$8
$400
$33,392
Approval within 24 hoursEarly payout available
  • Required: Good credit history, stable employment history. Aus citizenship or PR.
7.24% p.a.
8.36% p.a.
$930
Variable
New
1 year
$8
$400
$33,466
7.29% p.a.
8.00% p.a.
$930
Fixed
New
2 years
$0
$499
$33,491
7.29% p.a.
8.41% p.a.
$930
Fixed
New
1 year
$8
$400
$33,491
8.49% p.a.
9.21% p.a.
$947
Fixed
Used
No Max
$0
$499
$34,088
Credit Score +832
  • No ongoing fees
  • No early exit penalty
  • Flexible repayment options
8.49% p.a.
9.38% p.a.
$947
Variable
New, Used
No Max
$13
$0
$34,088
9.49% p.a.
10.82% p.a.
$961
Fixed
New, Used
No Max
$9
$474
$34,591
7.74% p.a.
8.85% p.a.
$936
Variable
Used
3 years
$8
$400
$33,714
APPLY ONLINE
  • Unlimited extra repayments
  • Flexible repayment options
  • Required: Good credit history, stable employment history. Aus citizenship or PR.
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Important Information and Comparison Rate Warning

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 . View disclaimer.

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Hot March Car Loan Rates & Deals

There's a wide range of car loans out there, with higher/lower rates depending on the age of the car, whether the loan is secured or not and whether the vehicle is electric or a hybrid. Whatever your circumstances are, there's likely a lot of variation between the highest and lowest available rates. It's well worth your time to do your research to find the cheapest car loan rates you qualify for.

Here are a few of the top car loan offers on the market for different circumstances:

  • South West Slopes Credit Union: Fixed rate car loan. 5.79% p.a. (comparison rate 5.79 p.a.*)
  • Gateway Bank: Used car loan, up to 5 years old. 5.99% p.a (6.20% p.a comparison rate*)
  • Horizon Bank: Green car loan. 5.79% p.a. (6.01% p.a comparison rate* )
  • Hiver: Unsecured car loan. 6.14% p.a. (Comparison Rate 6.28% p.a.*)

For more information on how we’ve selected these products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of March 4, 2024. View disclaimer

How to get a low interest car loan?

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.

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.

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.

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

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 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
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.

Marie Mortimer,Director,
loans.com.au