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  • Comparison rates from 3.83% p.a*
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Australia's Money Matchmaker matching you with your best loans across multiple lenders
My matching process checks multiple lender rates at once, making it super fast to shop around.

Why use Money Matchmaker® to find your car loan

Money Matchmaker puts you in control of your loan choices

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The rates are based on who you are and where you are at in life









What is a car loan?

Written by

Shaun McGowan

With a car loan, the loan is secured against the value of the car that is being financed.

Car loans are best for people who simply want to buy a car, as car loans generally offer much lower interest rates than personal loans.

With secured car loans you should get;

  • Lower, fixed rates
  • Flexible terms and repayment options
  • No deposit required
  • Simple and quick approvals
How a car loan works
Australia's Money Matchmaker matching you with your best loans across multiple lenders
Did you know? 90% of all car sales are financed in Australia. That’s almost $3 billion dollars a month in car financing!

What rate will I pay on my car loan?

Everyone wants to get the best car loan rates, here is what that will depend on:

  • The type of car you are buying
  • Your personal situation
  • What your credit rating is
  • Your ability to repay the loan

Generally the newer the car, the cheaper it will be. See more about what lenders are looking for below.

Currently, a good interest rate for a car loan is below 7% for new and late model cars. The average car loan rates today for people with good credit scores ranges between 5-10%, usually depending on whether it's a new or used car you are purchasing

Get help with your finances if you have bad credit with Money Matchmaker

Best Car Loan Rate Comparison 2022

Car loan amount5% interest7.5% interest10% interest





































Comparison car loan repayment examples are calculated using monthly repayments with a fixed interest rate on a 5-year term. They do not include any fees that may be charged by a lender in addition to interest.

What is the current interest rate for a car loan in Australia?

Today, the lowest rate car loan has an advertised variable rate of 3.24% for new cars (+ ex demonstrator cars defined as up to 12 months old with under 5000kms.)

If you're buying an Electric Vehicle (EV) the rate drops slightly to 3.14%

This car loan has a $400 application fee and a comparison rate of 3.78%.

It is also only available to homeowners.

How much can you borrow to finance a car?

How much you can borrow depends on you and the value of the car, but you could borrow up to $100,000, the average being $30,000.

How long can you get a car loan for?

Usually car loans offered are between two to seven years. The most common is five years. And... most people pay out their loan early so be sure to get a car loan with no fees for early repayment.

Generally, the shortest amount of time you take the car loan for, the lowest amount of interest you will pay.

Avoid Rate Shock

According to Society One, the most common reason for not continuing to get a loan is due to price shock. Price shock is when you expect to get the advertised rate, but instead due to your credit profile, you get a bigger rate. Money Matchmaker™ doesn't show you advertised rates, only the best real rates you qualify for. So you never get a rate shock.

Avoid rate shock on loans with Money Matchmaker

Find the best deal on car loans


How long does it take to get approved for a car loan?

Most car loan lenders can approve your car loan on the same day you apply. You'll need to be able to supply your ID and proof of your income, eg payslips.

You could expect to be driving your car in 2-3 business days.

Do I need to have a deposit for a car loan?

The short answer is no. In most cases as long as you can afford to meet the repayments, you can borrow 100% of the cost of the vehicle.

Can I finance any car?

You can finance most cars with a secured car loan. They will generally need to be less than 12 years old at the end of the loan term to qualify.

Buying older cars is still possible with a personal loan.

You can also use a car loan with a private seller.

Car loans for used cars with Money Matchmaker

Where can you 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 our Money Matchmaker™ to do the leg work for you. It's like applying direct with 11 lenders all at once.

Where to get a car loan with Money Matchmaker

What is the best way to finance a car?

Buying a new car, even if it's not brand new from the dealer, is a big purchase.

There are many ways you can finance your next new car:

The best way to finance a new car is by doing your research. Finding out what you can borrow and how much the repayments will be including all fees. This will ensure you get the best deal and don't pay more than you have to.

5 Steps To Compare Car Loans

A good thing to do, is to write each car loan offer down to do a side-by-side comparison. Always start by asking each lender who has quoted you for the total amount to repay.

This is a really quick way to see what car loan is the lowest cost overall.

Here are 5 things you need to compare when assessing which car loan option is best for you.

The interest rate on your loan

Interest is charged by your lender for borrowing the money. It’s essentially how much extra you’ll need to pay back on top of the amount you borrow.

It’s very standard that your repayments will have a fixed interest rate. Variable rates don’t really exist anymore.

Fixed rate personal loans with Money Matchmaker

How long you take out the loan for

This is also called the ‘term’ of your loan. Car loans are usually between two and seven years but most commonly 5 years.

The shorter the term, the less overall interest you will pay.

The best loan terms with Money Matchmaker

The establishment fee for your loan

This is a one-time fee you’ll pay when applying. You may be able to negotiate this or simply choose a lender who doesn't have one!

The types of defaults lenders are interested in

Any ongoing fees

Try and avoid these where you can - they only add to the amount you have to repay. They’ll be disguised as monthly account keeping fees.

Comparing loan fees

Early repayment penalties

Some secured car loans won’t allow for early repayments. If you plan to repay your loan in full before the end of your term, check to see how much (if anything) you’ll be charged.

Lenders will use these fees to make up for the interest charges they’ll miss out if you repay early.

Money Matchmaker™ can find you the best car loan options from 10 lenders for you to compare online. It's obligation free too.

Pay off your defaults to improve your credit rating

Other costs to consider when buying a car

Upfront costsOngoing Costs

Purchase price


Dealer delivery charges


Stamp duty


Luxury Car Tax


Vehicle Inspection costs

Roadside assistance

Car History report costs

New parts

Road Tolls

To fully understand all costs when buying a car read our guide.

What are the car finance requirements?

To qualify for a car loan, you're going to need to have;

  • Regular source of income
  • Over 18
  • Have your driver licence
  • Be a Permanent Resident or Citizen
How to qualify for a loan in Australia

What credit score is needed for a car loan?

A credit score above 699 will ensure you qualify for most loans and can access competitive rates.

Having a bad credit score isn’t the end of the world but it can make securing credit more difficult.

If your application is accepted you may be offered higher interest rates and/or more restrictive loan terms.

If lenders deny your applications you may still be able to access credit with lenders who specialise in bad credit car loans.

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

How your credit history affects your loan options with Money Matchmaker

The type of car lenders prefer to finance

The lender would prefer to finance new cars over older cars for a couple of reasons, but ultimately are often backed by warranties in case of any mechanical issues. The older the car being financed, the more issues it may have.

age of car being purchased

How lenders view credit history when you apply for a car loan

A stronger credit history over a longer period of time is favoured.

Bad credit car loans are also available for people who do have issues on their credit file.

credit history applicant

What lenders are looking for in a car loan borrower

Car loan companies love boring, or should we say, consistency!

They love it if you've had the same job forever and have been at the same house since you first left home.

Here's an example of how your employment history and stability can influence your approval.

employment history applicant

Find the best deal on car loans


Shop around before you take out a car loan

Just like you shop around for the perfect car, do the same with car finance, to give yourself the best opportunity of getting the cheapest, lowest rate car loan. Plus, you can literally save thousands of dollars in interest and fees.

You’ll also have a better chance of negotiating if you know:

  • Exactly how much you can spend
  • The best interest rate you can get
  • How much your repayments will be

Finance at a car dealership might seem quick and easy but be aware of unnecessary extras that may increase the total loan amount and your repayments.

Shop around for a personal loan and save thousands with Money Matchmaker

3 Tips for getting your car loan approved

  • Do your research and try not to apply with multiple lenders as it can impact your credit score.
  • Create a budget before applying so you know what you can comfortably afford to repay.
  • Always ask the lender to communicate the single, total dollar amount of what the loan will cost.

How to determine which car loan you should get?

You really need to do your research and a comparison of offers to find the best car financing option.

Here is a quick check list:

  • Is it the cheapest rate you can get?
  • Does it have no or the lowest fees possible?
  • Flexible loan features?
  • Does it meet your needs?
  • Is it the right type of finance? (Secured Car Loan, Personal Loan or Novated Lease.

The easiest and quickest way is to use our Money Matchmaker™ or read this guide if you want to know what car loan options you have.

Be proactive about managing debt with Money Matchmaker

Read those terms and conditions

It’s super important to read these so you understand any fees or penalties for your loan.

Look for fees payable at the start and during your loan term, this affects the total amount you pay.

Look for:

  • Late payment fees
  • Break fees or early termination fees
  • Stamp duty and on-road costs
  • Referral fees or brokerage fees
You need to be aware of all loan fees when you compare a loan

Can you help me with a car loan anywhere in Australia?

Nowadays, and even more so since Covid, car loan companies operate across the country as the process to getting a car loan can be done via the phone and online.

Most lenders are located in major capital cities like Perth, Sydney, Melbourne, Brisbane, Adelaide and Hobart.

All the lenders we work with all have Australian based teams. So rest assured, when arranging your loan you'll be working with a lender in Australia.


Meet Money Matchmaker®

"Hey I’m Money Matchmaker®, I have a team of wizards making me super smart. When you take my quiz, I use your answers to check against all our lenders at once. I’m harmless, I don’t impact your credit score and I'll use the information to help my team of loan experts find you all the loans you're eligible for."

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The right car loan can save you $1,000s


About the Author

Shaun McGowan from



Shaun McGowan

Shaun is the founder of and is determined to help people pay as little as possible for financial products. Through education and building world class technology. Previously Shaun co-founded and Lend.

*Information about comparison rates Comparison rates are designed to allow borrowers to understand the true cost of a loan by taking into account fees and charges, the loan amount and the term of the loan. The comparison rate is based on an 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.