Fact Checked
| 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.99% p.a. | 7.12% p.a. | $580 | Variable | New | No Max | $8 | $400 | $34,791 |
| Promoted | Disclosure | ||||||||
6.28% p.a. | 6.28% p.a. | $584 | Fixed | New | No Max | $0 | $0 | $35,034 |
| Promoted | Disclosure | ||||||||
6.52% p.a. | 6.95% p.a. | $587 | Fixed | New, Used | No Max | $0 | $350 | $35,236 |
| Promoted | Disclosure | ||||||||
6.09% p.a. | 7.22% p.a. | $581 | Variable | New | No Max | $8 | $400 | $34,874 | |||||||||||
6.59% p.a. | 7.29% p.a. | $588 | Fixed | New | No Max | $0 | $499 | $35,295 | |||||||||||
5.67% p.a. | 6.10% p.a. | $575 | Fixed | New | No Max | $0 | $0 | $34,524 | |||||||||||
6.69% p.a. | 6.86% p.a. | $590 | Fixed | New, Used | No Max | $0 | $120 | $35,379 | |||||||||||
7.39% p.a. | 8.19% p.a. | $600 | Fixed | New, Used | No Max | $7.5 | $195 | $35,974 | |||||||||||
6.99% p.a. | 8.12% p.a. | $594 | Variable | Used | No Max | $8 | $400 | $35,634 | |||||||||||
7.49% p.a. | 7.90% p.a. | $601 | Fixed | New, Used | No Max | $0 | $295 | $36,060 | |||||||||||
7.99% p.a. | 8.20% p.a. | $608 | Fixed | New | No Max | $0 | $150 | $36,489 | |||||||||||
8.20% p.a. | 8.27% p.a. | $611 | Fixed | New, Used | No Max | $0 | $0 | $36,670 | |||||||||||
6.29% p.a. | 7.30% p.a. | $584 | Fixed | New, Used | No Max | $9 | $265 | $35,042 | |||||||||||
9.49% p.a. | 10.93% p.a. | $630 | Fixed | New, Used | No Max | $13 | $395 | $37,795 | |||||||||||
6.28% p.a. | 6.28% p.a. | $584 | Fixed | Used | No Max | $0 | $0 | $35,034 |
| Promoted | Disclosure |
Important Information and Comparison Rate Warning
Important Information and Comparison Rate Warning
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Whether you’re buying a new or used car, easily compare car loan rates, fees and features.
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Monthly low-rate car loan deals and offers, handpicked by our experts.
Cheap July Car Loan Interest Rates & Deals
There's a huge range of car loans on the market, with rates varying widely depending on a number of factors. These can include the age of the car, whether the loan will be secured or not, and whether you're buying an electric or a hybrid vehicle. (Those rates can be significantly lower.)
Whatever your circumstances, the difference between the lowest and highest rates you may be offered can be pretty significant. That's why it's well worth your time to do your research and find the cheapest car loan rates you qualify for.
To take a bit of the legwork out of it, I've done a scout for you to find some of the standout rates this month.
Which lenders are offering the lowest car loan rates?
According our database, here are a few of the lowest car loan offers on the market for different circumstances:
- MoneyPlace: Fixed-rate new car loan. Five years. Excellent credit. 5.67% p.a. (6.10% p.a. comparison rate*).
- Loans.com.au: Variable-rate car loan up to seven years. Available new and demo vehicles up to 7,500 km. Rates from 5.99% p.a. (7.12% p.a. comparison rate*)
- Firstmac: Variable-rate car loan. New/demo vehicles up to 7,500 km. 6.09% p.a. (7.22% p.a. comparison rate*)
- Omm: Secured fixed-rate loan up to 5 years. Rates from 6.28% p.a. (6.28% p.a. comparison rate*). Exceptional credit.
How do I get a low interest car loan?
There can be a number of ways to get a low-interest car loan, but one of the best is to maintain a clean credit history. This lets lenders know you're a trustworthy borrower, making them more likely to offer you a good interest rate.
Also it's well worth shopping around to see which lenders are offering the lowest rates for your particular circumstances. Keep in mind secured car loans tend to have lower interest rates than unsecured loans, while loans for newer cars often have lower rates than those for older models.
See you next month!
For more information on how we’ve selected these products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of 1 July, 2025. View disclaimer
How to compare car loans
Here are some of the top things to consider when choosing a car loan:
Interest rate
Interest is the biggest cost of a car loan and is the rate you're charged per year on the outstanding loan balance.
Interest rates are either:
- Fixed rate: The interest rate remains the same for the duration of the fixed term
- Variable rate: The interest rate changes at the lender’s discretion
Loan period
The loan period of a car loan is usually between 1-7 years. The longer the loan, the smaller the repayments, but the more interest you will pay overall.
Repayments
Repayments are usually repaid monthly, however depending on which lender you choose you may have the flexibility to make repayments fortnightly or weekly.
Fees
Be aware of the fees charged by your lender, these often include:
Establishment fee
- Ongoing Maintenance fee
- Break fees
- Discharge fee
- Late payment fee
Compare fees between lenders to save on your loan. Try using the comparison rate as a guide, because the comparison rate is designed to reflect the cost of the loan in terms of interest and fees.
Balloon payment
A balloon payment is a 30-50% lump sum repayment of the loan that some borrowers opt to pay at the end of the loan term.
Balloons allow you to make smaller repayments over the loan term, but cost you more in interest.
What is a car loan and how does it work?
A car loan is a sum of money you borrow from a lender for the purpose of buying a vehicle. Like most loans, you pay back a car loan and its associated interest costs through regular repayments over an agreed period of time.
Car Loan Example
Jake get a ute
Jake wants to buy a $30,000 Toyota Hilux with $5,000 of his savings and a $25,000 car loan. He’s approved for a five-year loan at an interest rate of 5.00% p.a. with repayments of $472 per month and an upfront establishment fee of $400. Over the five year loan term, he will pay $33,707 for the Hilux, which includes:
- $5,000 of his savings
- $25,000 car loan
- $400 car loan establishment fee
- $3,307 in interest
Frequently Asked Questions
Car loans and dealer finance can be acceptable methods of car financing, so long as you do your due diligence and shop around. Dealer finance can often have faster approval times and lower interest rates compared to car loans, but they can also be less flexible and more restrictive. If you're torn between the two, consider walking into a dealership with a pre-approved car loan under your belt and negotiating with the dealer to see if they can offer a better rate. For any type of car financing, be sure to take all the fees into account and look at what the total cost of the finance would be at the end of the term.
A secured car loan is one where an asset (the car you’re buying) is used as collateral against the loan, and can be reclaimed by the lender if repayments aren't met. Unsecured car loans do not use your car as security. Secured car loans are generally less risky for lenders to provide than unsecured car loans, so they often have lower interest rates. Read more about secured vs unsecured car loans!
If you have bad credit, you can boost your chances of being approved for a car loan by: being realistic in your expectations & picking a modest car, being honest in your application, save some money beforehand, obtain stable employment, and clean up existing debts. Also work towards improving your credit history beforehand by paying bills and credit card repayments on time.
Your eligibility for a car loan will depend on a variety of factors such as: the car model, whether the car is new or used, the lender and the loan you're applying for, your income, your credit rating and history, your assets and liabilities, and your history of savings. Having a bad credit rating doesn't disqualify you from getting car loans, but you might find it harder to get a good one.
Basic car loan requirements often include:
- Proof of a steady, reasonably high income
- Proof of identity: driver's license, Medicare card, passport etc.
- Proof of residence
- Proof of your ability to save money (try three-six months)
- Proof of your assets (like shares) and liabilities (like credit card debt)
Not having these on hand could reduce or eliminate your chances of having a loan application approved.
There are lots of different car loan terms available, but most reputable lenders will allow terms between one and seven years, with 10 years usually the maximum. Your car loan term is how long it would take to pay off the car loan without any extra repayments.
Yes, you can refinance your current car loan to a different car loan with different terms, or a different lender with a lower interest rate. When refinancing a car loan, the money borrowed from the new loan will cover the balance of your previous car loan, allowing you to pay off that old car loan before moving onto the new one.
Car loans can be both secured and unsecured, but the majority of them are secured, meaning the car is used as security against the loan. Should you fail the repay the loan, the car can be repossessed by the lender. Unsecured car loans (which are essentially personal loans) don't have the car as a security, but tend to come with higher rates to compensate for this.
A pre-approved car loan can be beneficial as it lets you know what you can afford before you go out to buy a car. To get a pre-approved car loan:
- Compare car loan providers to make sure you’ve found the right one
- Check your credit rating before applying
- Gather all of the necessary documents (100 points of ID, income, proof of employment, assets and liabilities etc.)
- Contact your chosen lender and tell them you want to apply for pre-approval
Car loan lender reviews
Want to learn more about a lender? Explore our in-depth feature pieces including commentary, brand profiles and latest car loan products & rates.
How do car loans work?
Like seeing the road ahead, a solid understanding of car loans can help you steer clear of the financial potholes.
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Do your research, choose an honest & transparent lender.
When it’s time for a new car, you might think it’s worth paying an extra percent or two at the dealership to get the car sooner - but we assure you that is not the case.
Many lenders, particularly online lenders like us, offer car loan pre-approval, and far lower interest rates than dealerships, potentially saving you hundreds, if not thousands on your car finance. Some can even turn around an approval and settlement for you in record time, so there’s no reason not to head to the dealership with your finance sorted so you’re prepared to buy.
Our top tip - always read through the fine print and opt for someone transparent and honest to help you with your car loan.
