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Compare Your Best Car Loan Rates

Get quotes from top Australian lenders with a free, no obligation call from a trusted car loan broker.

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Current cheapest car loan interest rates on our database

Green car loans from

5.49% (5.84%)

Comparison rate^ p.a.

New car loans from

5.69% (6.04%)

Comparison rate^ p.a.

Used car loans from

5.79% (5.79%)

Comparison rate^ p.a.

Fixed rate car loans from

5.69% (6.04%)

Comparison rate^ p.a.

Variable car loans from

6.00% (6.24%)

Comparison rate^ p.a.

Unsecured loans from

6.56% (6.56%)

Comparison rate^ p.a.

Best car loan interest rate comparison December 2024

Compare some of the best car loans in Australia. We display all car loans on our database and we’re not paid by lenders if you click through to their website. The table is sorted by lowest interest rate. Use the filters to search for your best car loan options. Read the Read the comparison rate warning and other important information.

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Rates updated 02 December 2024

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Car loans in Australia – December 2024

Car loans
Sean Callery Editor Money.com.au
Sean Callery

Editor

Currently, the lowest car loan interest rate we can find is 5.49% p.a. (comparison rate 5.84% p.a.^) That's a fixed rate secured car loan for EVs and other energy efficient vehicles, available to borrowers with a perfect credit score and very strong application overall. But rates for a lot of borrowers will be higher than this, depending on the car you're buying, your credit score and overall application. In fact, according to the Reserve Bank of Australia, the average fixed term personal loan rate (including car loans) is 10.04% p.a. Variable car loans are currently cheaper than fixed rates, on average.

Car finance in Australia by the numbers

pie chart

Average new car loan

$47,566

Average used car loan

$32,528

Average monthly car loan repayment (over 5 yrs)

$1,012

Total monthly car loan borrowing (Sept 2024)

$1.56 billion

Portion of car lending for new cars

38.9%

Sources: Car loan data from real Money.com.au customers, ABS, RBA.

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.

The key to getting your best car loan rate is comparing personalised quotes.

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).
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  • Other vehicle types can be financed with what is effectively a car loan, and rates may vary for other vehicle types, such as caravan loans, boat loans, motorcycle loans and truck finance.

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.

If you're an ABN holder and will be using the vehicle mostly for business purposes, you can apply for an ABN car loan. Again rates on this kind of finance will likely be different to consumer car finance.

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.

What can you get with a car loan?

A car loan allows you to borrow a set amount of money to buy a vehicle, and repay it plus interest over a fixed term. The vehicle you purchase secures the loan. This means the lender can reclaim it if you cant repay the loan.

Here's what car loans offer:

  • Borrow from $5,000 - $200,000
  • Can be used for new or used cars
  • Loan terms from 1 - 7 years
  • Fixed or variable interest rates
  • Interest rate tailored to you
  • Weekly, fortnightly or monthly repayments
  • Some loans allow for extra repayments and early payout
  • No deposit required

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

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

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

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.

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

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.

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.

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BONUS TIP: Give yourself a better chance of car loan approval

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.

Am I eligible to get a car loan?

To qualify for a car loan in Australia, 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 much will your repayments be?

See your estimated car loan repayments per week, fortnight or month.

Best Car Loans with Money Matchmaker

Car loan repayment calculator

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Car loans FAQs

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

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.

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

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.

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

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".

Let the people speak.

"Nick was knowledgeable and helpful every step of the way for my refinance journey, made me felt reassured about the decision. Would def recommend him for anyone else who’s looking for a home loan. Thanks Nick!"

Oscar

"Nick recently assisted me with refinancing my investment loans. He did a great job in getting me one of the best rates out there and a smooth transition from my existing banks. I am a happy customer and commend Nick's work. Keen to continue my association and grow my portfolio with Money.com.au"

Gokul R.

"Just before I signed a refinance contract with certain bank, Nick called and offered me a better rate. The process was smooth,Nick was super professional and easy to talk to. I highly recommend his service, you won't be disappointed."

Hany M

"Wonderful and excellent experince with Michael Burgess. His explanation is very clear and understandable. Help me out on getting better rates . Now i can save easy $400 a month. Thanks and will reccommend to anyone without hetistate."

Harkomal singh Chandi

Harkomal C

"Nick B. assisted in every step of the process making the transition easy to follow. Provided the beast deal and ticked all the requirements we needed. Recommended!!"

Andrew

"Shopped around online and found Money.com.au the most competitive. I put an enquiry through and Michael Burgess called me back and was able to assist us throughout the process. He was able to provide a sharper rate than any rate we could access from the public and also made the refinancing process seamless. I would consider our situation complex, and Michael was able to provide the indepth support we required to cater to our needs. I will use Michael and Money.com.au again in the future and would not hesitate to recommend Michael and his support Catherine, to my network."

Noel

"Michael Burgess was able to get very competitive rates for me which were below the lowest I could find from comparison sites."

S Nayak

"Communication was very clear and the end result - best rate I could achieve !"

Euge

"Great customer support and always willing to help out"

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Aaron R.

"Very easy to use and helped me get a refinance"

Sue N.

"Very quick and easy to use service. Found the best loan offer in minutes that no one could match. Highly recommend Money.com."

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"I’d recommend it to anyone"

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Brock J.

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Cara R.

"Straightforward service. It does what it says. I'd use it again."

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Esteban A.

"Great company & services. Recommeded"

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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 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.

Important information

Unless otherwise stated, car loan comparison rates are calculated based on a loan amount of $30,000 repaid over a 5-year term. The comparison rates only apply to the examples given. Different loan 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. Check with the provider for full loan details, including rates, fees, eligibility and terms and conditions to make sure the product is right for you.

General information only The information on this page is general in nature and has been prepared without considering your objectives, financial situation or needs. You should consider whether the information provided and the nature of any car loan product is suitable for you and seek independent financial advice if necessary.

We are not providing you with a recommendation or suggestion about a particular car loan. You should read the relevant disclosure statements or other offer documents before deciding whether to apply for or continue to use a particular product.

What products, features and information are shown While we make every effort to ensure all car loans available in Australia are shown in our comparison tables, we do not guarantee that all products are included.

Our product comparisons may not compare all car loan features and attributes relevant to you. Product information, such as interest rates, fees and charges, is subject to change without notice. Before acting on any information, you should confirm the relevant product information with the lender.

How car loans are sorted and filtered by default Users can easily change the sort order and apply product filters to our product comparison tables. However, when you arrive on a page initially, by default car loans are sorted by:

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  • Lowest loan interest rate, then;
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  • Lowest establishment fee, then;
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  • Lowest ongoing fee, then;
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  • Provider name (A-Z)

Some car loan products listed in our tables are available through a broker. These are the products with an option to ‘Check Eligibility on Money.com.au’. Brokers may not be able to offer loans from every provider and there may be more suitable loans for your personal circumstances.

Brokers are not authorised by Money's Australian Credit Licence and operate under their own Australian Credit Licence, or as a credit representative of another Australian Credit Licensee. Brokers can make recommendations about loan products that may suit your objectives, financial situation and needs.

Our tables feature all car loans available from lenders on our database that match the search criteria selected. Lenders do not pay to feature in our tables, nor do we earn commission if you click to visit a lender’s website. The order of the products in the table is not influenced by any commercial arrangements.

If you get a car loan as a result of visiting this page, we may earn a commission.

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Our Money Promise

Money Pty Ltd (trading as Money) (ABN 42 626 094 773) Australian Credit Licence 528698 provides information about credit products. Money does not compare all products or issuers available in Australia. We are not a broker or credit provider and when we provide information via this website, we are not providing you with a recommendation or suggestion about a particular credit product. We may receive a commission when you apply for a home loan as a result of outbound links on this website.

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.

The information on this website is intended to be general in nature and has been prepared without considering your objectives, financial situation or needs. You should read the relevant disclosure statements or other offer documents prior to making a decision about a credit product and seek independent financial advice. Whilst Money.com.au endeavours to ensure the accuracy of the information provided on this website, no responsibility is accepted by us for any errors, omissions or any inaccurate information on this website.

Interest rates, fees and charges are subject to change without notice. Before acting on any information, you should confirm the interest rates, fees, charges and product information with the provider. For clarity, where we have used the terms “lowest” or “best” these relate solely to the rates of interest offered by the provider and not on any other factor. The application of these terms to a particular product is subject to change without notice if the provider changes their rates.

The calculator provided on money.com.au is intended for informational and illustrative purposes only. The results generated by this calculator are based on the inputs you provide and the assumptions set by us. These results should not be considered as financial advice or a recommendation to buy or sell any financial product. By using this calculator, you acknowledge and agree to the terms set out in this disclaimer. For more detailed information, please review our full terms and conditions on the website.

Assumptions:

  • The calculations do not account for changes in interest rates or other market conditions that may occur.
  • Results are approximations and may differ from actual payment schedules or amounts.
  • The calculator does not include all fees and charges that you may incur in relation to a financial product.

Limitation

  • This calculator does not guarantee the availability of any financial product or the accuracy of the calculations. Please consult a financial advisor or the relevant product provider to obtain specific advice tailored to your circumstances.
  • money.com.au does not accept any liability for errors or omissions, or for any loss you may suffer as a result of relying on these calculations.
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Money is a corporate authorised representative (CAR 001307399) of 62 Consulting Pty Limited (ABN 88 664 809 303) (AFSL 548573) (62C)
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