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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
6.24% p.a.
7.36% p.a.
$583
Variable
New
1 year
$8
$400
$35,000
Featured
  • 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.
6.34% p.a.
8.36% p.a.
$585
Variable
New
1 year
$8
$400
$35,084
6.57% p.a.
7.19% p.a.
$588
Fixed
New
No Max
$0
$250
$35,278
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
7.09% p.a.
8.21% p.a.
$595
Fixed
New
1 year
$8
$400
$35,719
8.27% p.a.
8.27% p.a.
$612
Fixed
New, Used
No Max
$0
$595
$36,731
8.49% p.a.
9.38% p.a.
$615
Variable
New, Used
No Max
$13
$0
$36,921
9.49% p.a.
10.82% p.a.
$630
Fixed
New, Used
No Max
$9
$474
$37,795
6.49% p.a.
7.69% p.a.
$587
Fixed
New, Used
7 years
$12
$250
$35,211
6.24% p.a.
6.84% p.a.
$583
Variable
New
3 years
$5
$120
$35,000
6.29% p.a.
7.62% p.a.
$584
Variable
New
No Max
$0
$195
$35,042
More car loans
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.

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

What is a new car loan?

On the lookout for a new car but don't have quite enough savings to purchase the vehicle upfront? Taking out a car loan could be your next option.

A new car loan is a type of personal loan that allows you to finance a brand new car that's under a certain age, typically five years old.

When you take out a new car loan, the lender will either cover the entire cost of the vehicle, or the remaining amount required after you've paid a deposit. Either way, you'll sign an agreement with the lender to repay the loan amount (with interest) in regular installments (weekly, fortnightly, or monthly) over a set period of time.

As part of the loan approval process, your lender will typically need to know which car you'd like to buy so they can assess its value. However, there are some lenders out there that can offer pre-approval for a new car loan, similar to that of a home loan. After you've found your dream car, the lender does all the checks and balances so you can get your mitts on the keys in no time.

New car finance deals

When scouring the market for a new car loan, it's important to note each lender will offer features unique to their product offerings. Selecting a car loan that's right for you means selecting one that fits your financial position. To find the best finance deal for a new car, keep the following in mind:

Interest rate

Weigh up the interest rates from different lenders and find the right option for you. Don't forget to look at the fixed and variable rates, plus the comparison rate to get a better idea of the total cost of the loan. The comparison rate factors in both the interest rate plus any fees payable.

Fees

Check whether the lenders have any upfront and/or ongoing fees (and if so, the cost) that may be charged to you such as:

  • Annual or monthly account keeping fees
  • Fees for missed payments or early repayments
  • Loan application fees
  • Exit fees

Loan term

This is the length of time you have to pay off the new car loan, plus interest. New car loans typically have loan terms of three to five years. Seven year car loans are also making up a bigger proportion of the market. However, five year loans are arguably the most popular. This is because they offer a suitable blend of both a manageable payment and interest paid over the life of the loan. The shorter your loan term, the less interest you'll ultimately pay. However, the trade-off is you'll have a higher weekly, fortnightly, or monthly payment. This can make budgeting around the car loan harder. The general rule of thumb when looking at a car loan term is to pick the shortest one you can budget.

Unsecured vs secured loan

Another thing to be wary of is if your car finance is secured or unsecured. Secured car loans use the car as security against the loan… as you might have guessed. This means that if you default on the loan, your lender may repossess your car. Unsecured loans, on the other hand, do not do this, and if you fail to pay, they may come after you in another fashion. Plus, they generally have a higher interest rate. A trade-off with a secured loan is that often the interest rate is much lower to compensate.

Extra features

Some lenders may offer extra features with their new car loan such as the option to make extra fee-free repayments, and a redraw facility that allows you to withdraw any additional repayments in the likelihood of an emergency. Other appealing features may include fast approval times or balloon repayments.

How to get a low interest rate on a new car loan

Here's a few things you can do to maximise your chances of getting a lower rate for your new car loan:

  • Have a good credit score: Many lenders offer tiered rates, which can be based on your credit score. The higher your score, the lower your interest rate is likely to be. Note that you don’t necessarily need a lengthy credit history to have a good score, but any line of credit you apply and get rejected for can reflect badly on your credit score. Many agencies allow you to check your credit score for free once per year.
  • Get a secured car loan: A secured car loan means that if you default on the loan, your lender may repossess your car. However, a secured car loan can come with a lower interest rate.
  • Have a deposit or choose a balloon: If you’re willing to front up with a deposit, this will lower total interest paid over the life of the loan. Conversely, a balloon payment is similar, only it’s applied at the end of the loan, and can be around 30% of the car’s value. If you’re opting for a balloon, make sure you budget for it to avoid a nasty surprise three, five, or seven years later!

Aside from that, it pays to shop around. Don’t just stick to dealership finance or the big banks - there are lots of lenders out there worth taking a look at.

Used car loans vs new car loans

New cars depreciate, and can depreciate rather quickly. This is why it’s feasible to look at a near new or demonstration vehicle that’s already taken a hit of depreciation, while getting into a relatively new vehicle. However, new car loans are typically restricted to cars that are either brand new or only two or three years old at most. This is where used car loans step in.

Used car loans are typically for cars up to around seven years old, and the biggest bonus is that in a lot of circumstances the interest rate is the same or similar to the equivalent new car loan. You can compare a range of fixed used car loans below.

Update resultsUpdate
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.
$588
Fixed
New
No Max
$0
$250
$35,278
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
7.79% p.a.
8.90% p.a.
$605
Fixed
Used
5 years
$8
$400
$36,317
  • Required: Good credit history, stable employment history. Aus citizenship or PR.
12.79% p.a.
13.90% p.a.
$679
Fixed
Used
12 years
$8
$400
$40,762
  • Required: Good credit history, stable employment history. Aus citizenship or PR.
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.


Frequently asked questions

Just like any loan, qualifying for a car loan requires meeting general lending eligibility criteria. This means applicants are required to be over the age of 18, possess Australian citizenship or permanent residency and earning consistent income. In order to meet responsible lending requirements, lenders are required to ensure any loan product they approve is able to be serviced and will not put the borrower at harm of financial instability or risk.

When scouring the market for a car loan, it’s important to note each lender will offer features unique to their product offerings. Selecting a car loan that’s right for you means selecting one that fits your financial position by looking at:

  • Whether you can make extra payments on your loan without penalty

  • Whether you can pay out your loan early without penalty

  • Balloon payments

  • Interest rates on offer

  • Repayment periods

  • If there are any additional fees

  • Approval times

The majority of car loan lenders in Australia offer a maximum term of up to seven years, although borrowers often choose loans in the three to four year range. Some lenders do offer car loan terms as long as 12 years, after which your new wheels may be on its last legs. When it comes to determining the length of a car loan, it’s important to understand the longer the car loan term, the lower your monthly repayments will be - yet the greater amount of interest you will be charged over the life of the loan.

If you are considering a car loan to purchase your new set of wheels, having a deposit or down payment can reduce the amount of repayments and interest paid over the life of the loan. As a rule of thumb, the larger the deposit, the less you’ll pay overall, which is particularly important for a car as it’s a depreciating asset.

There are a number of different ways to apply for a new car loan. You can go directly to a lender, you can organise finance through a broker, or organise the dealership to get a car loan for you.

With most lenders, you can typically apply over the phone or via an online application form. Approval times can range anywhere from as little as one hour to a few days depending on the lender.

When the time comes to apply, you'll need to provide documentation which may include a driver's license, passport, proof of income and savings, payslips, details of assets, bank statements, and utility bills.

Use Savings.com.au's car loan calculator to get an idea of what your repayments will cost you. Simply enter the loan amount, vehicle price, loan term, interest rate, and repayment frequency to find out your estimated repayments.