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

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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

VariableNew1 yearMore details
APPLY ONLINE
APPLY ONLINE

Electric and Hybrid Car Loan

    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
    FixedNew, Used5 yearsMore details
    • 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

    Fixed Car Loan (with Low Emission Vehicle discount)

    • 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

    *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 June 27, 2022. View disclaimer.


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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 strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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