No obligations, just the facts, make an informed choice
Get matched with real loan offers from up 60 lenders
The rates are based on who you are and where you are at in life
Written byShaun McGowan
The lowest car loan rates are generally reserved for newer vehicles that are financed with a secured car loan.
In addition, having a strong credit score and history will strengthen your ability to get alow rate car loan (even if you aren't buying a new car).
How long you have been employed is an interest rate factor.
Lenders prefer to finance new cars over older cars and therefore provide lower rates for them.
Rates from 5.99% p.a Comparison Rates from 6.54% p.a
Rates from 4.74% to 16.01% p.a Comparison Rates from 5.56% to 16.93% p.a
Rates from 14% to 24% p.a
Greenlight Auto Finance
Rates from 16.99% to 27.99%
Rates from 5.29% to 24.99% p.a Comparison Rates from 5.84% to 29.99% p.a
Variable Rates from 3.14% to 8.44% p.a Variable Comparison Rates from 3.68% to 9.01% p.a Fixed Rates from 4.89% to 10.19% p.a Fixed Comparison Rates from 5.44% to 10.76% p.a
Rates from 4.45% - 15.45% p.a Comparison Rates from 4.45% - 15.45% p.a
Rates from 15.92% to 27.99% p.a Comparison Rates from 26.69% to 36.32% p.a
Rates from 4.95% - $19.99% Comparison Rates from 4.95% - 21.70%
Rates from 4.99% to 12.99% p.a Comparison Rates from 4.99% to 12.99% p.a
Notice how all these rates are ‘from’ a certain percentage?
That’s because you won’t know exactly what rate you get until you apply.
When you apply, lenders will look at you and your application and adjust your rate.
Lenders assess an application for a car loan and assign an interest rate based on a number of factors:
You can get the lowest interest rates on a car loan by presenting as little risk to a lender as possible.
Interest rates are often directly tied to your risk level - the lower the perceived risk of failing to meet your repayment obligations throughout the term, the lower the interest rates available.
The lowest interest rates on a car loan are offered to borrowers who fit the profile below:
Now you know a little more about how to get the lowest rate, it’s time to look at why a low interest rate doesn’t always mean the cheapest loan
First, answer this: what does ‘the cheapest car loan’ mean to you?
If you want to get cheaper repayments on your loan, you can consider:
If you want to pay a lower amount of interest, you should consider:
To find the cheapest loans with the best rates, you’ll need to understand how loans are advertised.
In Australia, you’ll find two types of interest rates listed with loans:
The advertised rate is determined only by the interest rate applied to the loan.
Ignore this - it’s a trap.
Well, the only time this will matter at all is when your loan has no fees, but this doesn’t matter either because…
The comparison rate is a more realistic assessment of the loan cost - it combines the advertised rate and all the fees included with the loan.
Guess which one you’ll see more often when looking for cheap car loans or low interest car loans.
That’s right, the advertised rate. Again, ignore this and only look at the comparison rate.
This is because a comparison rate will be much higher if there are significant fees attached to the loan - which makes them unappealing to borrowers wanting the best deal.
Don’t get tricked by a deal that looks too good to be true.
You can compare cheap car loans by looking at all the factors that influence your total interest amount, total repayment amount, and your regular repayment amount. These will be influenced by:
The average interest rate for a car loan is between 5 and 10%.
New cars generally attract lower averages around 5-8% depending on your credit profile.
Used cars are often slightly higher.
"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."
Shaun is the founder of Money.com.au 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 CarLoans.com.au 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.