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Compare Your Best Car Loan Rates

  • Instant online quotes from top Australian lenders
  • Free, no obligation call from a trusted car loan broker
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Car Loans

Just some of the 30+ lenders we compare

Why compare car loans with Money

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30+ Australian lenders to choose from

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Personalised rates

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Best car loan interest rate comparison July 2024

Compare car loans in Australia from a selection of lenders, with interest rate ranges based on the borrower's credit score and other factors.

Harmoney

Car loan interest rate

5.66% p.a. - 20.07% p.a.

Comparison rate*

6.45% p.a. - 20.98% p.a.

Loan amounts available

$2,000 - $70,000

Now Finance

Car loan interest rate

6.75% p.a. - 21.65% p.a.

Comparison rate*

6.75% p.a. - 21.65% p.a.

Loan amounts available

$15,000 – $100,000

Great Southern Bank

Car loan interest rate

6.49% p.a. - 15.04% p.a.

Comparison rate*

6.95% p.a. - 15.54% p.a.

Loan amounts available

$5,000 - $100,000

Liberty Financial

Car loan interest rate

6.52% p.a. - 19.19% p.a.

Comparison rate*

6.95% p.a. - 20.77% p.a.

Loan amounts available

$5,000 - $80,000

Moneyplace

Car loan interest rate

6.52% p.a. - 19.19% p.a.

Comparison rate*

6.95% p.a. - 20.77% p.a.

Loan amounts available

$5,000 - $80,000

OMM

Car loan interest rate

6.57% p.a. - 18.99% p.a.

Comparison rate*

7.19% p.a. - 21.78% p.a.

Loan amounts available

$2,001 - $75,000

Loans.com.au

Car loan interest rate

6.09% p.a. - 12.99% p.a.

Comparison rate*

7.21% p.a. - 14.10% p.a.

Loan amounts available

$5,000 - $150,000

Bank of Melbourne

Car loan interest rate

6.49% p.a. - 12.99% p.a.

Comparison rate*

7.61% p.a. - 14.06% p.a.

Loan amounts available

$3,000 - $100,000

BankSA

Car loan interest rate

6.49% p.a. - 12.99% p.a.

Comparison rate*

7.61% p.a. - 14.06% p.a.

Loan amounts available

$3,000 - $100,000

St.George

Car loan interest rate

6.49% p.a. - 12.99% p.a.

Comparison rate*

7.61% p.a. - 14.06% p.a.

Loan amounts available

$3,000 - $100,000

Westpac

Car loan interest rate

6.49% p.a. - 12.99% p.a.

Comparison rate*

7.69% p.a. - 14.14% p.a.

Loan amounts available

$10,000 - $100,000

Plenti

Car loan interest rate

7.19% p.a. - 12.99% p.a.

Comparison rate*

7.82% p.a. - 13.66% p.a.

Loan amounts available

$10,000 - $100,000

NRMA

Car loan interest rate

7.29% p.a. - 16.99% p.a.

Comparison rate*

8.00% p.a. - 17.77% p.a.

Loan amounts available

$5,000 (no max specified)

RACV

Car loan interest rate

7.29% p.a. - 16.99% p.a.

Comparison rate*

8.00% p.a. - 17.77% p.a.

Loan amounts available

$5,000 (no max specified)

Commbank

Car loan interest rate

6.99% p.a. - 10.99% p.a.

Comparison rate*

8.04% p.a. - 11.99% p.a.

Loan amounts available

$4,000 - $100,000

ANZ

Car loan interest rate

7.49% p.a. - 19.99% p.a.

Comparison rate*

8.18% p.a. - 20.58% p.a.

Loan amounts available

$5,000 - $50,000

Society One

Car loan interest rate

8.20% p.a. - 24.89% p.a.

Comparison rate*

8.27% p.a. - 25.64% p.a.

Loan amounts available

$5,000 - $70,000

NAB

Car loan interest rate

8.49% p.a. - 20.49% p.a.

Comparison rate*

9.54% p.a. - 21.49% p.a.

Loan amounts available

$5,000 - $55,000

Wisr

Car loan interest rate

8.59% p.a. - 15.49% p.a.

Comparison rate*

10.12% p.a. - 17.03% p.a.

Loan amounts available

$10,000 - $147,000

Latitude Financial

Car loan interest rate

9.49% p.a. - 29.99% p.a.

Comparison rate*

10.93% p.a. - 31.83% p.a.

Loan amounts available

$5,000 (no max specified)

Car loan interest rateComparison rate*Loan amounts available

Harmoney

5.66% p.a. - 20.07% p.a.

6.45% p.a. - 20.98% p.a.

$2,000 - $70,000

Now Finance

6.75% p.a. - 21.65% p.a.

6.75% p.a. - 21.65% p.a.

$15,000 – $100,000

Great Southern Bank

6.49% p.a. - 15.04% p.a.

6.95% p.a. - 15.54% p.a.

$5,000 - $100,000

Liberty Financial

6.52% p.a. - 19.19% p.a.

6.95% p.a. - 20.77% p.a.

$5,000 - $80,000

Moneyplace

6.52% p.a. - 19.19% p.a.

6.95% p.a. - 20.77% p.a.

$5,000 - $80,000

OMM

6.57% p.a. - 18.99% p.a.

7.19% p.a. - 21.78% p.a.

$2,001 - $75,000

Loans.com.au

6.09% p.a. - 12.99% p.a.

7.21% p.a. - 14.10% p.a.

$5,000 - $150,000

Bank of Melbourne

6.49% p.a. - 12.99% p.a.

7.61% p.a. - 14.06% p.a.

$3,000 - $100,000

BankSA

6.49% p.a. - 12.99% p.a.

7.61% p.a. - 14.06% p.a.

$3,000 - $100,000

St.George

6.49% p.a. - 12.99% p.a.

7.61% p.a. - 14.06% p.a.

$3,000 - $100,000

Westpac

6.49% p.a. - 12.99% p.a.

7.69% p.a. - 14.14% p.a.

$10,000 - $100,000

Plenti

7.19% p.a. - 12.99% p.a.

7.82% p.a. - 13.66% p.a.

$10,000 - $100,000

NRMA

7.29% p.a. - 16.99% p.a.

8.00% p.a. - 17.77% p.a.

$5,000 (no max specified)

RACV

7.29% p.a. - 16.99% p.a.

8.00% p.a. - 17.77% p.a.

$5,000 (no max specified)

Commbank

6.99% p.a. - 10.99% p.a.

8.04% p.a. - 11.99% p.a.

$4,000 - $100,000

ANZ

7.49% p.a. - 19.99% p.a.

8.18% p.a. - 20.58% p.a.

$5,000 - $50,000

Society One

8.20% p.a. - 24.89% p.a.

8.27% p.a. - 25.64% p.a.

$5,000 - $70,000

NAB

8.49% p.a. - 20.49% p.a.

9.54% p.a. - 21.49% p.a.

$5,000 - $55,000

Wisr

8.59% p.a. - 15.49% p.a.

10.12% p.a. - 17.03% p.a.

$10,000 - $147,000

Latitude Financial

9.49% p.a. - 29.99% p.a.

10.93% p.a. - 31.83% p.a.

$5,000 (no max specified)

Best car loans comparison based on products analysed by Money.com.au advertising a high and low interest rate range, sorted by lowest comparison rate. Rates are current as of 1 July 2024. Check with the provider for full current loan details, including rates, fees, eligibility and terms and conditions. While this is an extensive list of car loans available in Australia, not all loans in the market are shown. This list is for reference only and does not reflect the selection of loans you may see if you get a personalised quote through Money.com.au. *The comparison rates shown are based on a secured/unsecured fixed rate personal loan of $30,000 over 5 years. WARNING: Comparison rates are true only for the examples provided and may not include all fees and charges. Different terms, fees or loan amounts might result in a different comparison rate.

Snapshot of car loan interest rates in Australia

  • The lowest car loan interest rate is 5.66% p.a. (comparison rate 6.45% p.a.*)
  • The average car loan rate is 12.26% p.a.
  • A 1% rate discount and shorter loan term could save the average borrower $4,562^

Source: Money's car loans database as at 1 July 2024*. ^Based on the average car loan rate quoted above and the average loan amount ($47,566) requested among a sample of 10,000 Money customers, with the loan repaid in four years instead of five.

What are the current cheapest car loan interest rates?

The cheapest car loan interest rate currently available is 5.66% p.a. (comparison rate 6.45% p.a.), based on loans on Money’s database. That's a fixed rate secured car loan for borrowers with a perfect credit score and very strong application overall.

The average car loan interest rate in Australia is 12.26% p.a.

Here are the lowest car loan rate currently available on Money's database of lenders for different types of loans and car purchases:

  • Green car loan: 5.49% p.a. (5.84% p.a. comparison rate)
  • New car loan: 5.66% p.a. (6.45% p.a. comparison rate)
  • Unsecured car loan: 5.76% p.a. (6.55% p.a. comparison rate)
  • Used car loan: 5.76% p.a. (6.55% p.a. comparison rate)
  • Fixed rate car loan: 5.66% p.a. (6.45% p.a. comparison rate)
  • Variable rate car loan: 6.24% p.a. (7.36% p.a. comparison rate)

These rates are based on Money's database of lenders offering car loans to consumers. See our separate guide for business car loan rates.

Car loan interest rates: advertised versus actual rates

Car loan interest rates - actual versus advertised rates

For most borrowers, it's unlikely you'll be offered a lender's lowest advertised car loan rate.

Car loan interest rates generally come in ranges. This is the same for other kinds of personal loans. Where your actual rate will sit within the lender's rate range will depend on your application.

The riskier your car loan application is, the higher the interest will be.

This is why it's very important to take 'advertised rates' on car loans with a large pinch of salt.

10 factors that determine your (actual) car loan interest rate

Borrowers with the highest (best) credit scores, generally qualify for the best car finance rates in Australia. Lenders like borrowers with a proven track record of managing credit responsibly, which is what your credit score is designed to show.

If you need a bad credit car loan, you'll be charged a higher interest rate, generally with more restrictive loan terms.

Avoid making multiple car loan applications in a short space of time as this can damage your credit score.

Find out what your credit score is for FREE before you apply for a loan.

There are a few key points here:

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  • The cheapest car loans in Australia are generally ones available for electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs).
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  • Around 40% of the lenders we analysed offer a discounted car loan interest rate for EVs.
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  • Lenders offer the lowest car loan interest rates on brand new cars or demo models.
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  • Some lenders have tiered interest rates for used car loans that increase based on the car's age (so not all used cars will attract the same rate).

Some lenders charge higher interest rates on car loans with a longer term. Again this comes down to the greater risk for the lender when lending over a longer period.

You can use our car loan repayments calculator to estimate your repayments based on different terms.

Car loan interest rates can vary massively from one lender to another. Comparing rates from multiple lenders based on your situation will help you find the lowest rates you qualify for.

But there's a right and a wrong way to do this:

Wrong: Making applications with multiple lenders to see what offers come back (which could hurt your credit score).

Right: Using a service like Money (or a car loan broker) to compare multiple interest rate offers, without it impacting your credit score.

Most car loan interest rates in Australia are fixed. In fact, over 75% of the car loans on Money's lender database come with a fixed interest rate.

But for lenders that do offer the option of a fixed and variable rate car loan, currently more fixed rates are lower. This can be a sign that lenders expect interest rates in the economy to fall from current levels.

You'll generally qualify for the lowest car loan interest rates if you have:

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  • A high, reliable income
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  • Low regular expenses relative to your income
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  • Low levels of overall debt (e.g. credit cards and other loans)

You may qualify for a lower car loan interest rate if you're employed full-time and have been in the same job and industry for a sustained period.

Casual and self-employed people can apply for a low doc car loan, but these usually come with higher interest rates.

Over the years, we've found it's common for lenders to consider whether the borrower owns a property when calculating their car loan interest rate.

Property owners generally qualify for lower car loan rates. Property owners who also have a high level of equity in their property (i.e. more of their home loan is paid off), get the lowest rates.

This might not seem particularly relevant for a car loan. But the way lenders look at it, it's another signal about how risky a borrower is.

Some lenders simply bundle this factor into the overall calculation, while others (Macquarie Bank is an example) advertise different car loan interest rates specifically for property owners.

Your loan amount can impact your car loan interest rate. The impact could be either positive or negative depending on the situation. Here are two scenarios to illustrate the point:

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  • For an already higher risk borrower, a larger loan amount adds to the risk and the lender may reflect this with a higher interest rate.
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  • Some borrowers may charge a lower rate to low-risk borrowers with larger loan amounts (the same thing commonly happens with home loan rates).

The loan-to-value ratio on a car loan is the car loan amount expressed as a percentage of the value of the car it's being used to finance.

A higher LVR (where you're borrowing a higher percentage of the car's purchase price) may mean a higher interest rate.

Note, some lenders will allow you to borrow more than 100% of the car's value. For example, you might get finance to buy an electric vehicle, plus a home charger and battery. If you own another vehicle, you may be able to borrow more than 100% of the value of a new car, using your current car as additional security.

How to get the best car finance deal (in 6 steps)

1

Get a SECURED car loan

Some lenders advertise unsecured personal loans as being 'car loans'. A secured car loan will almost always have a lower rate.

2

Apply for car loan pre-approval

Getting car loan pre-approval means you won't be rushed into a car loan with a high interest rate at the last minute.

3

Shop around

Only apply for a car loan once you've compared multiple lenders and you’re confident you’ve found the lowest interest rate you qualify for, with low fees.

4

Consider smaller lenders

Some of the cheapest car loan interest rates may be offered by lenders you've never heard of.

5

Match the loan to your car

For example, if you're buying an EV, be sure to take advantage of the discounts available with specialist 'green car loans'. If you're buying a brand new car, loans specifically for new cars typically offer lower interest rates than generic car loans.

6

Make sure your loan is flexible

Look for the flexibility to make extra repayments and pay off the loan early without penalty. 'Redraw' is another handy feature, as it means you can withdraw any extra repayments you have made if you need to access cash.

Am I eligible to get a car loan?

To qualify for a car loan, you'll typically need to meet these eligibility criteria:

  • Be over 18 years of age
  • Be an Australian citizen or permanent resident
  • Have a regular source of income (most lenders look for six months of steady income)
  • Have no major issues in your credit history
  • Be buying a car that meets the lender's criteria (a new or used vehicle up to 12 years old, with no finance outstanding).

How to apply...

The exact process will depend on the lender you apply with, but typically it goes like this:

Step 1. Compare car loan providers Step 2. Complete a loan application Step 3. Provide supporting documents (payslips, bank statements etc.) Step 4. Get pre approved by the lender. Step 5: Go car shopping, then… Step 6: Apply for full loan approval based on your chosen car Step 7: Sign the loan contract and provide proof of car insurance to the lender Step 8: The loan funds will be transferred to the car seller directly

How we help you find the best car loan

Money can help you find the best deal you can on a car loan in three simple steps:

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1. Let us know who you are and what you're looking for

A little bit of information goes a long way in helping us find the right loans for you.

car

2. We securely analyse your data against each lender

This process finds the best loan offers that match your profile.

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3. Get matched

You'll either see a range of qualified car loan offers, or a lending specialist will help you find your match.

Give yourself a better chance of car loan approval

Shaun McGowan Money.com.au founder

Shaun McGowan, Loans Expert

It’s a good idea to do some preparation before you start applying for car loans. Check your credit report so you can anticipate any issues and work out a comfortable budget for making car loan repayments each week, fortnight or month. Then only apply for car loans that are easily within your budget.

Shaun McGowan, Loans Expert

Ready to compare car loans?

Get your best offers from multiple lenders. There's no obligation and checking your rates won't impact your credit score.

Car loan guides & resources

Let us guide you on the road ahead with our simple calculators, comparisons and explainers.

Car loans FAQs

This guide has focussed on secured car loans, but it’s not the only way to finance a car.

Depending on the situation and what the vehicle is used for, there are some other options available:

And if you're financing a business vehicle...

What about adding the car purchase to your mortgage? This is known as home loan refinancing. It can be appealing because your home loan usually has a lower rate than you can get with a car loan. But long home loan terms (up to 30 years) can make this an expensive option over time.

A car loan is a type of secured personal loan. The car you're buying is the security, meaning the finance provider can reclaim the car to recoup its costs if you can’t repay the loan.

This reduces risk for the lender and means car loan interest rates are usually lower than unsecured personal loans.

Car loans can be used for new or used cars, and for dealer or private sales.

With a secured car loan you should get:

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  • A low fixed rate
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  • Flexible terms and repayment options
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  • No deposit required
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  • Simple and quick approvals

Most lenders offer car loans between $5,000 and $100,000. On average, borrowers request $44,547 for a new car loan and $30,005 for a used car loan, according to Money data.

How much you're able to borrow will come down to your credit score and financial situation: income, expenses, assets (e.g. a home) and other debts (like credit cards – the card limit, not your current balance).

Car finance terms are usually between 2 and 7 years (the most common loan term is five years).

Use our car loan calculator to estimate your repayments based on different loan terms (hint: the shorter the term, the more you'll save in interest).

The most common car finance fees are:

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  • Loan establishment/application fees
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  • Annual and monthly fees
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  • Extra repayments/early payout fees
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  • Missed repayment fees

The comparison rate gives a closer estimate of the overall cost of your car loan based on interest AND fees. Lenders are legally obliged to show this when advertising car loans.

This depends on the lender. It also depends on which company they check your credit score with as the score ranges vary. As an example, Equifax (one of the major credit reporting companies operating in Australia) classifies anything above 669 as being a ‘good’ credit score.

Having a good credit score means you would be eligible for a loan with most lenders (depending on your other circumstances).

But having a bad credit score isn’t the end of the world. It can simply mean you need to apply with more specialist lenders.

If you have a bad credit score and your application is accepted, you may be offered higher rates and/or more restrictive loan terms.

Avoid making multiple car loan applications in a short space of time as this can damage your credit score.

Find out what your credit score is for FREE before you apply for a loan.

A lot of car finance providers can pre-approve your car loan on the same day you apply.

For a fast turnaround, you’ll need to be able to prove your identity and supply documents to prove your income and expenses.

This usually includes your most recent pay slips, bank statements and home loan statements.

Typically, you can expect to be driving your car in 2-3 business days.

As long as you can afford the monthly repayments, you generally, don't need a deposit in order to get a car loan.

You can apply for a car loan with banks, car dealerships, car finance brokers or online lenders.

They all have different products and rates so it can be hard to find the right one for you.

We recommend using Money's matching engine to do the leg work for you. It's like applying for quotes direct with a range of lenders all at once.

This really depends on what you want from a car loan deal.

Online car loan lenders often have the lowest rates. They can also approve loans quickly in many cases, if your application is straightforward.

The reality is shopping around is the best way to find the most suitable lender for you.

Generally your car finance options are the same regardless of what car you're buying. The exception is the finance offered through the manufacturer itself or a particular dealer.

We've written guides on the financing options and deals available for some of the most popular car manufacturers in Australia:

It's important to make an informed decision about whether a car loan is right for you. To help you do that, here's a summary:

Pros of car loans

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  • Means you can spread the cost of your car out over a number of years
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  • It's often a relatively easy and fast process to get a car loan
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  • With a car loan you may be able to buy a better and/or more up-to-date model of vehicle, assuming you can afford the repayments comfortably

Cons of car loans

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  • It will cost you more than buying a car using savings
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  • Some products can be complex, particularly how the costs are displayed (or not displayed) by some lenders
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  • Car loan fees can add up to a lot and are not always listed clearly

Choosing a car loan with a large, one-off balloon payment at the end can be a good way of reducing your regular loan repayments. The thing to remember is that it will likely mean the loan will cost you more overall.

The lowest secured car loan interest rate currently available is 5.66% p.a. (comparison rate 6.45% p.a.).

At the other end of the scale, our analysis, shows some lenders in Australia charge rates as high as 29.99% p.a. (comparison rate 31.83%).

The average car loan interest in Australia is 12.26% p.a. For green car loans, the average interest rate is lower at 6.99% p.a.

These averages are based on Money's database of lenders.

This will depend on who you are and what kind of car you're buying. For a borrower with a good credit score buying a brand new car (particularly an EV), you should generally be aiming for a car loan interest rate below 8% p.a. and ideally closer to 6% p.a.

To be eligible for a lower rate car loan, here are some steps to consider:

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  • Compare rates with multiple lenders. It's very unlikely that the first rate you come across will be the lowest you can get.
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  • Negotiate the rate with the lender. You have nothing to lose by asking for a lower rate.
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  • Buy a newer car that's eligible for a lower interest rate.
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  • Contribute a deposit towards the cost of the car so you're borrowing less.
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  • Improve your credit score so you move into lenders' lower interest rate brackets

The comparison rate on a car loan is designed to represent the true cost of the loan. It factors in the loan's interest rate as well as most fees charged.

As the name suggests, the comparison rate is designed to make it easier to compare loans based on their actual cost. It will highlight if a car loan has a deceptively low interest rate, but high fees inflating the overall cost.

Legally, car loans must be advertised with a comparison rate.

Dealer finance is not generally known for offering fabulous value for money. In many cases, you'll pay a higher interest rate for the convenience of getting your car and the finance taken care of under one roof.

The government's Moneysmart website suggests you should "compare loans before visiting a car dealer".

Sean Callery Editor Money.com.au

Written by

Sean Callery

Sean Callery is the Editor of Money.com.au. He has over 15 years of international experience. He is qualified with a Certificate IV in Finance and Mortgage Broking (FNS40821) and is compliant to provide general advice in Tier 1 General Insurance (RG 146) products.

Shaun McGowan Money.com.au founder

Reviewed by

Shaun McGowan

Shaun McGowan is the founder of Money.com.au. He's determined to help people and businesses pay as little as possible for financial products, through education and building world class technology. Previously Shaun co-founded CarLoans.com.au and Lend.

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This material has been prepared by Money Pty Limited (ABN 40 664 954 536) (Money, ‘us’ or ‘we’). Money is a corporate authorised representative (CAR 001307399) of 62 Consulting Pty Limited (ABN 88 664 809 303) (AFSL 548573) (62C). The material is for general information only and is not an offer for the purchase or sale of any financial product or service. The material is not intended to provide you with financial or tax advice and does not take into account your objectives, financial situation or needs. Although we believe that the material is correct, no warranty of accuracy, reliability or completeness is given, except for liability under statute which cannot be excluded. Please note that past performance may not be indicative of future performance and that no guarantee of performance, the return of capital or a particular rate of return is given by 62C, Money, any of their related body corporates or any other person. To the maximum extent possible, 62C, Money, their related body corporates or any other person do not accept any liability for any statement in this material.

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