Compare low-rate car loans September 2021

author-avatar By on September 01, 2021
Compare low-rate car loans September 2021

Looking to purchase a new car? Savings.com.au has compiled some of the lowest-rate car loans on the market this month.

This page provides a snapshot of the market for car loans, displaying some of the lowest interest rates available for:

Low interest fixed rate car loans – new cars

Lender
Advertised rate Comparison rate Monthly repayment Interest TypeVehicle TypeMaximum Vehicle AgeOngoing FeeApplication FeeTotal RepaymentEarly RepaymentInstant ApprovalOnline Application
FixedNew2 yearsGo to site
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
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
FixedNew4 yearsGo to site
GET APPROVED WITHIN 24 HOURS

Car Loan (New and Dealer Used)

  • Approval in 24 hours
  • Balloon options to reduce repayments
  • No ongoing fees, no discharge fee
GET APPROVED WITHIN 24 HOURS

Car Loan (New and Dealer Used)

  • Approval in 24 hours
  • Balloon options to reduce repayments
  • No ongoing fees, no discharge fee
FixedNew, UsedNo maxMore details

Car Loan

FixedNew, Used2 yearsMore details

Low Rate Car Loan Special Offer

Rates based on a loan of $30,000 for a five-year loan term. Products sorted by advertised rate. Rates correct as of September 25, 2021. View disclaimer.

Low interest fixed rate car loans – used cars

Lender
Advertised rate Comparison rate Monthly repayment Interest TypeVehicle TypeMaximum Vehicle AgeOngoing FeeApplication FeeTotal RepaymentEarly RepaymentInstant ApprovalOnline Application
FixedUsedNo maxGo to site
QUICK APPLICATION PROCESS WITH NO FEES

Used Vehicle Fast Loan Low Rate

  • No ongoing fees
  • No early exit penalty
  • Flexible repayment options
QUICK APPLICATION PROCESS WITH NO FEES

Used Vehicle Fast Loan Low Rate

  • No ongoing fees
  • No early exit penalty
  • Flexible repayment options
FixedUsed4 yearsGo to site

Used Car Loan (up to 4 years)

  • Flexible repayment options
  • Can apply online
  • Approval is instant

Used Car Loan (up to 4 years)

  • Flexible repayment options
  • Can apply online
  • Approval is instant
FixedNew, UsedNo maxMore details

Car Loan

FixedNew, Used5 yearsMore details

Fixed Car Loan (with Low Emission Vehicle discount)

FixedNew, UsedNo maxMore details

Liberty Car Loan (Excellent Credit History)

Rates based on a loan of $30,000 for a five-year loan term. Products sorted by advertised rate. Rates correct as of September 25, 2021. View disclaimer.

Low interest green car loans

Lender
Advertised rate Comparison rate Monthly repayment Interest TypeVehicle TypeMaximum Vehicle AgeOngoing FeeApplication FeeTotal RepaymentEarly RepaymentInstant ApprovalOnline Application
FixedNew1 yearGo to site

Green Car Loan

FixedNew2 yearsGo to site
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
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, Used5 yearsMore details

Fixed Car Loan (with Low Emission Vehicle discount)

Base criteria: fixed and secured car loans for 'low emission' cars. Data accurate as at 01 September 2020. Rates based on a loan of $30,000 for a five-year loan term. Products sorted by advertised rate. Repayments are calculated based on advertised rates. Rates correct as of September 25, 2021. View disclaimer.

Low interest variable rate car loans – new cars

Lender
Advertised rate Comparison rate Monthly repayment Interest TypeVehicle TypeMaximum Vehicle AgeOngoing FeeApplication FeeTotal RepaymentEarly RepaymentInstant ApprovalOnline Application
VariableNew, UsedNo maxMore details

Car Loan (Variable)

VariableNew, UsedNo maxMore details

Excellent Credit

VariableNew1 yearMore details

New Car Loan

Rates based on a loan of $30,000 for a five-year loan term. Products sorted by advertised rate. Rates correct as of September 25, 2021. View disclaimer.

Low interest variable rate car loans – used cars

Lender
Advertised rate Comparison rate Monthly repayment Interest TypeVehicle TypeMaximum Vehicle AgeOngoing FeeApplication FeeTotal RepaymentEarly RepaymentInstant ApprovalOnline Application
VariableNew, UsedNo maxMore details

Excellent Credit

VariableUsed5 yearsMore details

Car Loan (Car 1-5 Years)

Rates based on a loan of $30,000 for a five-year loan term. Products sorted by advertised rate. Rates correct as of September 25, 2021. View disclaimer.

Other car loan guides & resources:

Car loan comparison

There are many factors to consider when choosing a car: the make, model, year, safety-ratingfuel-economy and the number of cupholders, just to name a few.

But when it comes to choosing a car loan, arguably the most important factor is the interest rate. It’s vital you shop around when taking out a loan for a car as interest rates can massively vary between loans.

Car loan comparison rate

It’s also important to be aware of the difference between a comparison rate and the advertised rate. The advertised rate is the annual rate of interest you’ll be charged on your debt, whereas the comparison rate reflects the advertised rate PLUS the fees and charges you’ll pay – giving you a truer depiction of the loan’s actual cost.

For example, a car loan with an advertised rate of 6% p.a but a comparison rate of 9% p.a is likely to have large fees. All accredited lenders in Australia are legally required to display the comparison rate beside any advertised rate to make it easier for consumers to compare loans from different lenders. But comparison rates should only be used as a guide – it’s important you look into all the fees and charges yourself before committing to anything.   

See the different car loan fees and charges and how much they can cost here

Car Loans in Australia

Cars are a passion for some but a pain for others – symbolising something akin to a cash-burning machine. Generally, a car will be the second most expensive purchase someone will make in their life – behind a house.

Most Australians don’t have tens of thousands of dollars lying around to readily be able to buy a new car. This was evident in 2017 when research from a royal commission investigation found that 90% of all car sales are arranged through finance – 39% of those are arranged through dealerships, while the remaining 61% is financed from other sources, like banks. 

Secured vs unsecured loans

You’ll see some of the loans above are secured while others are unsecured, so what’s the difference? 

secured loan is a loan that’s guaranteed by an asset, usually the car itself. The lender uses this asset as security, so if you can no longer afford your repayments, they have the right to repossess the asset and use it to cover the remaining cost of the loan.

This added security allows the lender to offer a lower interest rate for a lot of secured car loans since they have the secured asset as a backup. When it comes to cars, lenders have different rules, but you’ll generally have to provide details of the vehicle and be looking at a relatively new car. 

Unsecured loans can be used for a wide variety of things, like a holiday, wedding or maybe even a gorilla. Whatever it’s for, an unsecured loan doesn’t have the security for the lender that a secured loan does, so these loans tend to have a higher interest rate, although this isn’t always the case.

You might get an unsecured loan when buying an older car, or when buying the car as a gift for someone. They’re generally harder to be approved for as they rely on whether you have a good credit history. 

New vs used cars

You’ll see in the tables above we’ve displayed loans for both new and used cars, so how much of a difference does that make?

When it comes to secured car loans you’ll see that used car loans can have marginally higher interest rates. This is simply due to them being less reliable assets. 

What difference does a good interest rate make?

Let’s have a look at how much a small margin on your interest rate can make, using our car loan repayment calculator for a five-year loan.

  Secured loan  Unsecured loan 
Loan Amount $20,000 $20,000
Interest rate 5% 6.5%
Monthly repayments $377.42 $391.32
Total loan payable  $22,645.20 $23,479.92

So a secured $20,000 car loan over five years in this example could cost you around $800 less in total interest costs compared to an unsecured loan, assuming you’re paying a pretty low-interest rate on each.  Take this with a grain of salt though – it doesn’t factor in several things like the fees on your car loan, what your balloon payment is, any possible introductory rates and whether or not your rate changes (if you take out a variable loan).

Savings.com.au two cents

Car repayments on top of rent or mortgage repayments, groceries and every other bill in life can be a real financial burden to those that have them. You can see in the examples above how much of a difference a good car loan interest rate can make. That’s why it’s worth your time to shop around and revisit this page to get an idea of which lenders may be offering market-leading rates. 

Remember, just because you can borrow a certain amount doesn’t mean you should, so stay within your means. More importantly, do your research not just on your loan but on your vehicle as well. Cars are a depreciating asset so make sure you pick a loan length suitable to the vehicle and your budget. The last thing you want is to be paying for a car that isn’t drivable.


Photo by Negative Space from Pexels. Originally published by William Jolly. Updated by Alex Brewster 7/1/2021.

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2019. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

Some providers' products may not be available in all states.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*The Comparison rate is based on a $30,000 loan over 5 years. 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.

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author-avatar
Alex joined Savings.com.au as a finance journalist in 2019. He enjoys covering in-depth economical releases and breaking down how they might affect the everyday punter. He is passionate about providing Australians with the information and tools needed to make them financially stable for their futures.

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