- Standard car loans generally have a maximum borrowing limit between $100,000 to $150,000
- How much you can borrow depends on a number of factors including your financial position and credit history
- There are ways to increase your borrowing power but if you're after an expensive prestige vehicle, you'll likely have to find a specialist lender
Most car lenders set a minimum and maximum amount they will lend to borrowers but, for some, upper limits may be flexible.
How much can I borrow with a car loan?
The most common advertised maximum loan amounts in Australia range from $100,000 to $150,000. But there are a few factors that can have an influence.
Secured vs unsecured loans
Car loans can either be secured or unsecured. Secured means the vehicle you’re purchasing is used as security on the loan, while unsecured means there is no security attached to the loan.
A secured car loan will typically allow you to borrow more money, as the security on the loan gives the lender greater recourse to recover the car should you default on the loan.
For the same reason, it’s rare you will be able to borrow more than $100,000 with an unsecured car loan.
Borrowing power
As with any sort of loan, how much you can borrow comes down to your borrowing power. Lenders determine this according to:
- your income
- financial health
- expenses
- existing debt
- credit history
How much should you borrow?
Just because a lender is prepared to give a sizeable loan doesn't mean you should sign up for it.
Work out what your monthly repayments are likely to be and determine whether you can comfortably cover them for the duration of your car loan - generally anywhere between five and seven years.
See also: Savings.com.au car loan calculator
While you may be in a position to make your repayments at the time you apply, you'll need to think longer term. If you were to have a major life event in that time, like buying a house or having a baby, you need to consider whether you would still be able to afford your car loan repayments.
Cars cost more than loan repayments
Keep in mind, the cost of a car is going to be more than your monthly loan repayments. You’ll also have to pay for:
- registration
- insurance
- fuel
- service and maintenance costs
See also: Car expenses in Australia
Transport cost stats - Australia, 2025
National transport costs - $452 per week
- Car loan payments - $216 per week (47.8%)
- Fuel - $93 per week (20.6%)
- Insurance - $47 per week (10.4%)
- Registration - $34 per week (7.5%)
Source: Transport Affordability Index, September 2025
How to increase your borrowing power
If you feel you may need to borrow more money than a lender is offering, there are some straightforward ways to increase your borrowing power:
Pay your bills on time, consistently
Pay off loans on time, consistently
Pay off any outstanding debts in full if possible before applying for a loan
Reduce your credit card limit
Cancel any extra credit cards you don’t use or need
Avoid buy now, pay later arrangements and payday loans
Avoid applying with multiple lenders
Consolidate debt where possible
Savings.com.au's two cents
It can pay to remember the old adage when it comes to car purchasing: 'buy the cheapest car your ego can afford'.
In other words, a functional, reliable car will stand you in much better financial stead than a luxury vehicle which can also see you pay top dollar for maintenance ever after.
A second-hand or demo model may be a better buy than a brand new vehicle and be prepared to lower your sights if the numbers don't stack up for you.
Yes, such advice may be boring and sensible, but this is a website dedicated to savings after all.
Shop around
Another way to get the finance you're after is to research the market to find the best car loan to fit your needs and circumstances.
The table below features some of the lowest interest rates on the market and is a good place to start:
| Lender | Car Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Interest Type | Vehicle Type | Maximum Vehicle Age | Ongoing Fee | Upfront Fee | Total Repayment | Early Repayment | Instant Approval | Online Application | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|
Specialist lenders
If you've got your sights set on a luxury car costing well over the standard car loan limit, you may need to seek finance from a specialist lender.
It's worth checking with regular car lenders first as some may be prepared to lend you more than than their advertised cap depending on your financial circumstances.
Otherwise, there are a number of lenders and finance brokers that specialise in high-end and prestige vehicle finance. The same rules apply: shop around to ensure you get the best deal for your circumstances.
