A snapshot of car loan statistics
- 1 in 4 (26%) Australians used car finance for their most recent car purchase
- The average car loan amount is $36,419
- The average new car loan amount is $48,062
- The average used car loan amount is $31,890
- The average age of a used car purchased is 8 years
- Total amount borrowed with new car loans in the three months to June 2026 quarter was $4.7 billion
- Around 38% of car loans are for a brand new car, while 32% are for a used car (the remainder of borrowers hadn't decided on a car when they applied)
- Western Australians take out the largest car loans on average at $38,256, while Tasmanians borrow the least at $32,328
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How much do Australians borrow through car loans?
Australians collectively borrowed around $4.7 billion in fixed-term personal loans for road vehicles in the three months to June 2026, according to the Australian Bureau of Statistics.
That's a decrease of 1.6% on the previous quarter and around 5% lower than the same period last year
Over the 12-month period to June 2026, the total amount borrower was $19.01 billion, which was 0.02% lower than the previous 12 months.
Car loan borrowing had been steadily increasing since March 2023, following a sharp decline in early 2020 due to the COVID-19 pandemic. Borrowing levels reached an all-time high in the June 2025 quarter, but have fallen in each quarter since then.
Average car loan in Australia
The average car loan in Australia is $36,419, which includes loans for new and used cars, utes, motorcycles, vans, and trucks. For new cars, the average loan is $48,062, while for used cars, it's $31,890, according to the latest data from Money.com.au.
The average car loan size is largest in Western Australia and lowest in Tasmania.
Here’s a breakdown of the average loan amounts by vehicle type on our database:
- Cars is $36,235
- Motorbikes is $15,016
- Trucks is $50,679
- Utes is $40,920
- Vans is $34,755
As shown in the table below, monthly repayments for borrowers vary based on the average loan amounts by vehicle type. Keep in mind these car loan repayment amounts are based on the average interest rate of 9.40% p.a., as recorded by the Reserve Bank of Australia (RBA).
Average vehicle loan repayment
Naturally, the average monthly repayment for borrowers varies based on the average loan amounts by vehicle type. The table below shows the average vehicle finance repayment amount by vehicle type.
Type of vehicle | Car |
|---|---|
Average monthly repayment | $759 |
Total interest paid over a 5-year term | $9,319 |
Total amount paid | $45,554 |
Type of vehicle | Motorbike |
Average monthly repayment | $315 |
Total interest paid over a 5-year term | $3,862 |
Total amount paid | $18,878 |
Type of vehicle | Truck |
Average monthly repayment | $1,062 |
Total interest paid over a 5-year term | $13,034 |
Total amount paid | $63,713 |
Type of vehicle | Ute |
Average monthly repayment | $857 |
Total interest paid over a 5-year term | $10,524 |
Total amount paid | $51,444 |
Type of vehicle | Van |
Average monthly repayment | $728 |
Total interest paid over a 5-year term | $8,938 |
Total amount paid | $43,693 |
| Type of vehicle | Average monthly repayment | Total interest paid over a 5-year term | Total amount paid |
|---|---|---|---|
Car | $759 | $9,319 | $45,554 |
Motorbike | $315 | $3,862 | $18,878 |
Truck | $1,062 | $13,034 | $63,713 |
Ute | $857 | $10,524 | $51,444 |
Van | $728 | $8,938 | $43,693 |
Phil Collard, Car Loans Expert at Money.com.au
“How much you can borrow and the loan term you’ll be offered largely depends on your credit score and the overall strength of your application. It’s important to borrow within your means to ensure manageable repayments. Engaging with a trusted broker with access to a wide range of lenders goes a long way to securing a loan facility suited to your requirements and objectives."
Phil Collard, Car Loans Expert at Money.com.au
What vehicle types are car loans used for?
Although the term ‘car loan’ is commonly used, it can actually be applied to finance nearly any type of vehicle.
That said, the most common reason people take out a car loan in Australia is indeed to purchase a car, accounting for 86.91% of all loans, based on loan requests received by Money.com.au. Utes followed at 10%, vans at 1.51%, with motorcycles at 1.37%, and trucks at 0.21%.
Looking closer at the data, car loan applications were fairly evenly distributed across different purchase options:
- 37.87% were for brand-new cars
- 31.66% were for used cars from a dealer
- The remaining 30.47% of borrowers had not yet decided what car to buy
The average age of a used car bought from a dealer was 5.9 years and 10.9 years for a private sale.
Average financial position among car loan borrowers
Almost half of Australian car loan borrowers (49.6%) have an 'excellent' credit score based on analysis of more than 12,000 loan requests through Money.com.au. A further 26.01% recorded a 'very good score' score, while 13.47% had a 'good' score. At the lower end, 6% had an 'average' score score, and 4.93% reported a 'low' credit score.
More then 2 in 5 borrowers (41.19%) reported an annual income higher than $100,000, while the data showed that the average loan amount varied significantly based on whether the applicant is a home owner or not.
- Homeowner with mortgage: $44,348
- Renter: $30,638
- Living with parents: $30,105
The vast majority of car loan applicants (79.45%) were employed full-time, while 7.53% worked part-time and 5.59% were casual workers. The remainder were listed as self-employed (1.58%) or ‘other’, which may suggest they are on the pension or receiving Centrelink.
Phil Collard, Car Loans Expert at Money.com.au
"We recently uncovered in a survey that 15% of Australians consider their personal loan or car loan the most stressful debt they have. Gen Z reported the highest stress levels at 21%, followed by Millennials at 17%, Gen X at 12% and Boomers at 8%. This highlights just how important it is to assess your overall financial situation before taking on a car loan. A car finance broker can be a valuable resource in helping you navigate this and find the best option for your needs."
Phil Collard, Car Loans Expert at Money.com.au
How many Australians use car loans to finance their vehicle purchase?
In a recent survey of over 1,000 Australians, we found that 26% used a loan from a bank, lender or dealership to finance their car purchase. The majority (61%) didn’t require financing and paid for their car outright, while 4% financed through a novated lease and 10% reported not owning a car.
Unsurprisingly, the majority of car loan requests in our database come from New South Wales (33%), followed by Victoria (27%) and Queensland (22%). After that, Western Australia accounts for 7%, South Australia for 6%, the ACT for 1.6%, Tasmania for 1.2%, and the Northern Territory for 0.6%.
Where we sourced the data
The data used in our car loan statistics round up is based on the following sources:
- Car loan enquiries submitted on Money.com.au between January - September 2026
- Money.com.au consumer survey carried out by Pureprofile in January 2026, with a nationally representative sample of more than 1,000 Australians.
- ABS Lending Indicators for the July 2026 quarter
- RBA Personal Lending Rates - July 2026
