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5.99% p.a.
7.12% p.a.
$580
Variable
New
No Max
$8
$400
$34,791
  • 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.
 Disclosure
6.09% p.a.
7.22% p.a.
$581
Variable
New
No Max
$8
$400
$34,874
6.95% p.a.
7.26% p.a.
$593
Variable
New
No Max
$0
$220
$35,600
6.99% p.a.
7.27% p.a.
$594
Variable
New
No Max
$0
$200
$35,634
7.69% p.a.
7.90% p.a.
$604
Variable
New
No Max
$0
$149
$36,231
7.79% p.a.
9.13% p.a.
$605
Variable
Used
No Max
$0
$195
$36,317
9.49% p.a.
10.93% p.a.
$630
Variable
New, Used
No Max
$13
$395
$37,795
6.49% p.a.
6.80% p.a.
$587
Variable
New
No Max
$0
$200
$35,211
9.99% p.a.
10.21% p.a.
$637
Variable
Used
No Max
$0
$150
$38,236
5.94% p.a.
7.07% p.a.
$579
Variable
New
No Max
$8
$400
$34,749
5.84% p.a.
6.97% p.a.
$578
Variable
New
No Max
$8
$400
$34,665
  • Discounted rate on qualifying electric cars
  • Up to 7 yrs loan term
  • Redraw available up to $5,000/day
 Disclosure
  • 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.

More details
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.

Important Information and Comparison Rate Warning

What is a variable rate car loan?

If you are looking for a car loan with flexibility, then you may want to consider a variable rate car loan.

A variable rate means your repayments will change based on whether the lender raises or lowers their interest rates.

A variable rate loan is a loan where your interest rate will move (or ‘vary’) with changes to the market. This means your interest rate can rise or fall over the term of your loan.

Variable rate loans are more uncertain than fixed interest rate loans. This can make budgeting for your interest payments more difficult because you have to take into account potential rate rises. If you aren’t prepared, you could have trouble keeping up with repayments.

Advantages of variable rate car loans

One potential advantage of a variable rate car loan is the possibility of lower interest rates. Some lenders may be willing to offer lower interest rates on variable-rate loans because they appreciate the flexibility of being able to increase the rate at a later stage should they need to.

The flexibility of variable rate car loans is also a benefit for borrowers. Compared to fixed contracts, variable-rate loans often make it much easier for you to make extra repayments, adjust your repayment frequency (e.g. monthly to fortnightly), pay off the loan early or refinance.

Disadvantages of variable rate car loans

The main drawback of a variable rate loan is the possibility that interest rates increase during the loan term, increasing your repayments from the original rate. It’s a risk you need to consider as an extended period of rising rates could put you under significant financial stress if you can’t keep up with rising rates.

Always read the terms and conditions of the loan, as different loans may have different policies towards things like extra repayments or early exits.

What are the different types of car loans with a variable rate?

When it comes to car loans with variable rates, there are typically two loan types to choose from.

Unsecured car loan: With unsecured car loans, lenders do not require you to use your car as security. They don’t require you to use anything as security, which understandably represents a much higher risk for them. To compensate for this risk, lenders offering unsecured car loans will usually charge a higher interest rate, more fees, and probably won’t be as lenient with who they lend to.

Secured car loan: With a secured car loan, a lender uses an asset (the car you’re buying) as collateral against the loan. If you’re in the position where you fail to meet your repayments, the lender has the right to sell or repossess the asset in order to recuperate its funds.

How to Compare Variable Rate Car Loans?

When comparing variable car loan offers available from different lenders, it can be difficult narrowing down your final choice. To work out the right car loan option for you, you want to take the following into consideration:

  • Interest rate: Arguably, the first thing you’ll compare is the interest rate. Even though the rate is variable (meaning it can fluctuate), you still want to look at the rate that applies to the loan as this will give you an idea of the competitiveness of the product. The higher the rate, the more you will have to pay in interest over the life of the loan.
  • Fees: Will you need to pay application fees, late fees, break/exit fees, extra repayment fees, or ongoing repayment fees? These types of fees can add up over time so make sure to find out who charges these (and how much) when comparing variable rate car loans.
  • Features: Some lenders may offer beneficial features such as allowing additional repayments, offering redraw facilities, balloon payments, and fee-free exits for paying off your car loan early or refinancing.
  • Comparison rate: A comparison rate is a rate which helps provide a better indication of the true cost of a loan by bundling the interest rate plus various fees into a single percentage figure.
  • Loan term: Lenders can offer different loan terms ranging from one year to ten years. It’s important to choose a loan term with a repayment schedule that isn’t going to put you in a tough position financially.

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Frequently Asked Questions

Yes, it is possible to refinance your car loan on a variable rate.

People generally refinance their car loan to take advantage of a better deal - one that offers a lower interest rate, reduced fees, unique features, or different loans terms that better suit their needs.

A variable-rate car loan can move up or down at any time at the discretion of the lender, but they generally move in sync with Australia's cash rate,which is controlled by the Reserve Bank (RBA). This means your loan repayments can rise or fall over the term of your loan.

Meanwhile, a fixed rate car loan means you'll have a consistent monthly payment amount for a set period of time. Essentially, your repayments will stay the same.

Savings.com.au's car loan calculator can help you calculate your potential car loan repayments, based on your interest rate, car price, loan term, and payment frequency.

A redraw facility allows borrowers to 'redraw' or access any additional loan payments they have made into their car loan outside their regular ongoing repayments.

This is a feature borrowers should consider when comparing car loans as it can help if you're in need of financial relief. For instance, if you need to do some repairs to your vehicle, you can access the extra funds you deposited to cover the bill.

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Savings.com.au follows a strict editorial policy, so you can trust that we’re putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts who ensure everything we publish is objective, accurate and trustworthy.

Finance Journalist

Hanan joined Savings.com.au in 2022 as a finance journalist. With a keen interest in home loans, property investing, and money saving tactics, she is passionate about educating young Australians, like herself, on all things finance.

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