Compare Car Loans

Compare Loans for New Cars from 3.14%

Nothing beats the new car smell, and if you don’t have cash upfront, your next option is probably to get a new car loan - but where do you start? Compare interest rates, lenders, fees, features and more.

New car finance deals comparison

Lender

FixedNew1 yearMore details

Green Car Loan Fixed

    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

    Base criteria: fixed and secured car loans for 'low emission' cars. 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. *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. Rates correct as of May 22, 2022. View disclaimer.


    When comparing car loans, one of the key factors to look at is whether the interest rate is fixed or variable. Like with a home loan, the differences are similar. If you’ve got a fixed car loan, you have certainty with how much you pay per week, fortnight or month, for the life of your loan. On the flip side, with a variable loan, in a low-interest environment, you might be able to tap into a lower interest rate. However, rates can change at any time, which could mean your payment changes month to month.

    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. A trade-off with a secured loan is that often the interest rate is much lower to compensate. To get the ‘best’ deal on a new car loan, it is worthwhile comparing the range of options to see what works best for you.

    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.

    Lender

    FixedUsed99 yearsMore details
    QUICK APPLICATION PROCESS WITH NO FEES
    • 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
    FixedUsed5 yearsMore details
    • Flexible repayment options
    • Can apply online
    • Approval is instant

    Used Car Loan (up to 5 years) (Fixed)

    • Flexible repayment options
    • Can apply online
    • Approval is instant
    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
    FixedUsed12 yearsMore details

    Used Car Loan (Fixed) (8+ years, Dealer Only)

      *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 22, 2022. View disclaimer.

      How long do new car loans last?

      Common loan terms are three and 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.

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

      In a low-interest environment, it might be surprising to learn that car finance interest rates can still top 10% per annum. However, there’s a few things you can do to maximise your chances of getting a lower rate:

      • 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: As mentioned before, if you secure your car against the loan, you could receive a lower interest rate as the lender assumes less risk.
      • 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.

      How to finance a new car

      Financing a new car is easier than you think. Usually it’s a case of narrowing down a lender, and applying online. From there, many lenders also offer pre-approval, which is usually a fairly quick process. This way, you can shop around with a budget in mind, so you’re not shopping around for a Ferrari with a Corolla budget. After you’ve found your dream car, the lender then does all the checks and balances and you get your mitts on the keys in no time.


      Frequently asked questions

      Typically, the average interest rate on car loans is set anywhere from 5% to a whopping 17% - depending on whether the loan is secured or unsecured. For new car loans, if you are able to find a loan under 5% with a low comparison rate (meaning less fees) that is generally an indication of a good deal.

      Prior to choosing a car loan, you should consider factors such as interest rates and comparison rates, the option for pre-approval, flexibility in repayment schedules, balloon payment options, fees and the option to make additional repayments.

      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.

      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.