A car loan rate starting with a '2': Is this Australia's lowest rate car loan?

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on February 21, 2022 Fact Checked
A car loan rate starting with a '2': Is this Australia's lowest rate car loan?

loans.com.au has launched what it claims to be Australia's lowest secured car loan rate, with an advertised interest rate of less than 3%.

The loan's interest rate for regular cars is 2.99% p.a. (3.53% p.a. comparison rate*).

For electric or green vehicles, the loan offers an interest rate 10 basis points lower at 2.89% p.a. (3.43% p.a. comparison rate*).

There are two main catches with the loan that must be met:

  • The car must be a 2022 model year, either new or demo up to 5,000km.
  • The borrower must have a home loan (doesn't have to be with loans.com.au).

loans.com.au managing director Marie Mortimer said this is the lowest car loan rate on the market.

"Buying a car has been difficult for some in the past few years given supply issues and some lenders tightening restrictions," Ms Mortimer said.

"We want to help make it easier for borrowers to buy a car and get their keys as soon as possible."

The rates are variable, and customers can make extra repayments and redraw on their loan.

There are no ongoing, monthly, or annual fees - there is however a loan establishment fee of $400.

The maximum loan amount is $100,000, and the minimum loan term is three years while the maximum is five years.

No balloon payments are allowed.

In the interest of full disclosure, loans.com.au and Savings.com.au are both associates of Firstmac.


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In the market for a new car? The table below features car loans with some of the lowest interest rates on the market.

Lender

VariableNew1 yearMore details
NO ONGOING FEES
  • Unlimited extra repayments
  • Flexible repayment options
  • Can apply online
  • You could win a $1,000 fuel gift voucher. Open to customers who settle a car loan with loans.com.au. Terms and conditions apply.
NO ONGOING FEES

New - Prime Special

  • Unlimited extra repayments
  • Flexible repayment options
  • Can apply online
  • You could win a $1,000 fuel gift voucher. Open to customers who settle a car loan with loans.com.au. Terms and conditions apply.
FixedNew, Used99 yearsMore details
APPLY ONLINE
  • No ongoing fees
  • No early exit penalty
  • Flexible repayment options
APPLY ONLINE

Car Loan

  • No ongoing fees
  • No early exit penalty
  • Flexible repayment options
FixedNew2 yearsMore details
NO ONGOING FEES
  • No ongoing fees
  • No early exit penalty
  • Apply online
NO ONGOING FEES

New Car Loan

  • No ongoing fees
  • No early exit penalty
  • Apply online
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
FixedNew1 yearMore details
No ongoing fees
  • Interest rates ranked in the best 20%
  • No ongoing fees
  • Can apply online
No ongoing fees

Plenti Car Loan

  • Interest rates ranked in the best 20%
  • No ongoing fees
  • Can apply online
VariableNew1 yearMore details
APPLY ONLINE
APPLY ONLINE

Electric and Hybrid Car Loan

    *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 29, 2022. View disclaimer.


    Photo by the Lazy Artist Gallery on Pexels

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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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