The new car loan that's as cheap as a home loan

author-avatar By on March 17, 2020
The new car loan that's as cheap as a home loan

Photo by Marc Heckner on Unsplash

Loans.com.au has introduced a suite of reduced car loan interest rates – with one having an advertised interest rate below 4.00%. 

Loans.com.au's Green Car Loan saw a 22 basis point cut to 3.97% pa today (4.51% comparison rate*): That rate is on offer for cars classed as being a low-emissions vehicle.

Loans.com.au Managing Director, Marie Mortimer, said the new car loan rate comes after the Reserve Bank's decision to lower the cash rate earlier in March, with it being a good opportunity to get a great deal on a new car.

“We think that these competitive interest rates, combined with the amazing prices that dealers are offering at the moment, means this is a great time to buy a vehicle,” Ms Mortimer said.

“If a buyer is looking to trade in their car and even upgrade to a new one, they could find themselves in an excellent position to negotiate a better deal, given the current slump in new car sales.”

Other Loans.com.au car loan interest rates were also reduced, including:

  • New Car Loan: 4.67% p.a. (5.22% p.a. comparison rate*)
  • Used Car Loan: 4.67% p.a. (5.22% p.a. comparison rate*)

Ms Mortimer said it was promising to see car loan interest rates close the gap on mortgage interest rates.

“An interest rate of less than 4.00% is something that many of the Big 4 are still charging for a home loan so to offer a car loan at that price is remarkable,” she said.

Loans.com.au's green car loan offers a 70 basis point discount off its regular new car loan, and approved vehicles are based on the government's approved low emissions vehicle list.

This list includes electric and hybrid cars, as well as some frugal petrol cars. 

Compared to other green car loans, Loans.com.au is the only one in our research that has an advertised rate starting with a 3, as seen below.

Lender
Advertised rate Comparison rate Monthly repayment Interest TypeVehicle TypeMaximum Vehicle AgeOngoing FeeApplication FeeTotal RepaymentEarly RepaymentInstant ApprovalOnline Application
FixedNew1 yearMore details

Green Car Loan

FixedNew2 yearsMore details
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 October 16, 2021. View disclaimer.


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
Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison is passionate about breaking down complex financial topics for the everyday consumer.

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