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$20,000 Car Loans

Find out your loan options to help you finance a new or used $20,000 car.

Updated

We’re committed to our readers and editorial independence. We don’t compare all products in the market and may receive compensation when we refer you to our partners, but this does not influence our opinions or reviews. Learn more about Finder .

If you’re on the hunt for a new car and your budget is $20,000, you can choose from a range of new and used vehicles. Luckily, you also have a few financing options available to you depending on your needs and financial situation.

This guide will take you through these options including how they work, and their benefits and drawbacks to help you decide what’s right for you.

What loan can you get for a $20,000 car?

The types of loans you can get for a $20,000 car include:

  • A secured car loan. If you use your car as security for a loan you can benefit from a competitive interest rate. Keep in mind that you’ll only be able to borrow the value of the car, whether the car is new or used. Rates for secured car loans range from around 5% p.a. up to around 13% p.a.
  • Unsecured personal loans. With this loan, you don’t have to put forward an asset as security and you can also apply for whatever amount you want. This can be an option if you need additional funds to cover registration and insurance. However, the rates for unsecured personal loans tend to be higher, generally between 8-16% p.a.
  • Dealership finance. Dealership finance will get you a lower rate, which in turn will keep your repayments down. However, you are required to pay a balloon payment at the end of the loan, which can be thousands of dollars.
  • A novated lease. With this loan option, you are able to rent the vehicle for a monthly lease fee without retaining ownership of the vehicle, which belongs to the financier. Once your loan term has finished, you can either continue your novated lease or pay out to the financier to get the car with your name on the title.

Compare loans suitable to buy a $20,000 car

Data indicated here is updated regularly
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Application Fee Monthly Service Fee Monthly Repayment
IMB New Car Loan
4.99% (fixed)
5.34%
$2,000
1 to 7 years
$275.12 ($250 Application fee + $25.12 PPS registration fee)
$0
You'll receive a fixed rate of 4.99% p.a.
A low minimum borrowing amount of $2,000 that you can use to purchase a new car or one that's up to two years old.
Loans.com.au - New and Dealer Used Car Loan
From 4.67% (fixed)
5.22%
$5,000
3 to 5 years
$400
$0
You'll receive a fixed rate from 4.67% p.a. based on your risk profile
Finance a new car and benefit from features such as fast approval, no ongoing fees and an optional balloon payment. Note: Settle the loan before 30 November 2020 and enter the draw to win a $1,000 fuel voucher. Terms & conditions apply.
CUA Secured Fixed Car Loan
6.79% (fixed)
7.16%
$5,000
1 to 7 years
$265 ($175 Establishment Fee + $90 Security Administration Fee)
$0
You'll receive a fixed rate of 6.79% p.a.
A secured loan with a high maximum borrowing amount up to $100,000. Redraw facility and no monthly fees.
Heritage Bank Car Loan
4.89% (fixed)
5.53%
$5,000
1 to 7 years
$200
$5
You'll receive a fixed rate from 4.89% p.a.
Finance a new or used car up to 5 years old. Large maximum borrowing amount up to $100,000 and terms up to 7 years.
Credit Concierge Car Loan
From 4.45% (fixed)
5.29%
$10,000
1 to 7 years
$350
$5
You'll receive a fixed rate of 4.45% p.a. with a comparison rate of 5.29% p.a.
Get access to over 20 providers to fund a new or used car.

Stratton Finance New Car Loan
From 4.05% (fixed)
5.63%
$10,000
3 to 7 years
$700
$8.25
You'll receive a fixed or variable rate depending on the lender you are approved with
Apply for up to $250,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.
Plenti Car Loan
From 4.89% (fixed)
5.44%
$10,000
3 to 7 years
from $249 to $799
$0
You'll receive a fixed rate from 4.89% p.a.
Borrow up to $100,000 with a Plenti Car Loan and benefit from no early repayment or exit fees.
Driva Car Loan
From 4.34% (fixed)
5.5%
$2,000
1 to 7 years
$295 (Varies by lender, starting from $295)
$10
You'll receive a fixed rate from 4.34% p.a.
Borrow up to $250,000 with loan terms from 1 to 7 years. Get access to a range of lenders.
Latitude Personal Loan (Secured)
From 6.49% (fixed)
7.75%
$3,000
1 to 7 years
Loans under $5000 - $140
$13
You'll receive a fixed rate between 6.49% p.a. and 19.49% p.a. based on your risk profile
Lock in a competitive fixed rate when you offer security. Loan can be used for any purpose and repayments are flexible.
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Data indicated here is updated regularly
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Application Fee Monthly Service Fee Monthly Repayment
Plenti Fixed Rate Personal Loan

From 6.49% (fixed)
6.84%
$2,001
3 to 5 years
From $149 to $599
$0
You'll receive a fixed rate between 6.49% p.a. and 11.99% p.a. based on your risk profile
A flexible loan with amounts from $2,001 and terms starting from 3 years. Interest and comparison rates calculated for a loan term of 5 years.
Harmoney Unsecured Personal Loan

From 6.99% (fixed)
7.79%
$2,000
3 to 5 years
$575 ($275 for loans of below $5,000)
$0
You'll receive a fixed rate between 6.99% p.a. and 25.69% p.a. based on your risk profile.
Apply for a loan up to $50,000 and repay your loan over 3 or 5 year terms.
OurMoneyMarket Personal Loan

From 6.75% (fixed)
6.96%
$2,001
1 to 7 years
1.5–6% of your total loan amount
$0
You'll receive a fixed rate from 6.75% p.a. to 20.99% p.a. based on your risk profile
A personalised loan from $2,001 to $75,000 that varies based on your credit history and financial situation.
Alex Personal Loan

From 6.95% (fixed)
6.95%
$2,100
6 months to 5 years
$0 (waived $295)
$0
You'll receive a fixed interest rate from 6.95% p.a. to 19.99% p.a. based on your risk profile
Borrow between $2,100 and $30,000 from 6 months to 5 years. Benefit from no ongoing fees. Note: The establishment fee of $295 is waived for all applications until 31 October 2020. Terms & conditions apply.
SocietyOne Unsecured Personal Loan (2-3 years)

From 6.99% (fixed)
6.99%
$5,000
2 to 3 years
from 0% to 5% (capped at $995)
$0
You'll receive a fixed rate between 6.99% p.a. and 17.99% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.
SocietyOne Unsecured Personal Loan (5 years)

From 7.99% (fixed)
7.99%
$5,000
5 years
from 0% to 5% (capped at $995)
$0
You'll receive a fixed rate between 7.99% p.a. and 20.49% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.
Plenti Variable Rate Personal Loan

From 5.79% (variable)
6.78%
$2,001
1 to 3 years
From $149 to $599
$0
You'll receive a variable rate from 5.79% p.a and 11.99% p.a. based on your risk profile
A flexible loan with amounts from $2,001 and terms starting from 12 months. Benefit from transparent costs and a rate estimate before you apply.
NAB Personal Loan Unsecured Fixed

From 9.99% (fixed)
10.88%
$5,000
1 to 7 years
$150
$10
You'll receive a fixed rate between 9.99% p.a. and 18.99% p.a. ( 10.88% p.a. to 19.83% p.a. comparison rate) based on your risk profile
An unsecured loan up to $55,000 you can use for a range of purposes and pay off over up to 7 years. Note: Majority of customers will get the headline rate of 12.69% p.a. (13.56% p.a. comparison rate) or less. See Comparison rate warning in (i) above.
Symple Loans Personal Loan

From 5.75% (variable)
6.47%
$5,000
1 to 7 years
from 0% to 5% of the loan amount
$10
You'll receive a personalised interest rate from 5.75% p.a. to 21.99% p.a. based on your risk profile
Borrow up to $50,000 to pay for what you need.
Wisr Personal Loan

From 7.95% (fixed)
8.78%
$5,000
3 to 5 years
$595 (Establishment Fee)
$0
You'll receive a fixed rate between 7.95% p.a. and 19.45% p.a. based on your risk profile
A loan from $5,000 that charges no fees for extra or early repayments. Keep in mind security is required in some cases.
Heritage Bank Fixed Personal Loan
7.99% (fixed)
8.62%
$5,000
1 to 5 years
$200
$5
Choose a fixed rate loan and receive a comparison rate of 8.62% p.a.
Fixed rate loans are available up to $100,000 on terms from 1 to 5 years.
CUA Unsecured Fixed Rate Personal Loan
9.89% (fixed)
10.14%
$5,000
1 to 7 years
$175
$0
You'll receive a fixed rate of 9.89% p.a.
An unsecured loan from $5,000 with flexible repayments and no monthly fee.
NAB Personal Loan Unsecured Variable Rate

From 9.99% (variable)
10.88%
$5,000
1 to 7 years
$150
$10
You'll receive a variable rate between 9.99% p.a. and 18.99% p.a. ( 10.88% p.a. to 19.83% p.a. comparison rate) based on your risk profile
An unsecured loan up to $55,000 you can use for a range of purposes. Benefit from fee-free additional repayments and a redraw facility. Note: Majority of customers will get the headline rate of 12.69% p.a. (13.56% p.a. comparison rate) or less. See Comparison rate warning in (i) above.
CUA Unsecured Variable Personal Loan
11.89% (variable)
12.15%
$5,000
1 to 7 years
$175
$0
You'll receive a variable rate of 11.89% p.a.
Borrow from $5,000 with the option for flexible repayments and no monthly fees.
Heritage Bank Standard Variable Personal Loan
11.99% (variable)
12.61%
$5,000
1 to 10 years
$200
$5
Choose a variable rate loan and receive a 12.61% p.a. comparison rate
Variable rate loans are available from $5,000 - $100,000 on terms of 1 to 10 years.
MoneyMe Personal Loans

From 8.99% (fixed)
10.68%
$3,001
2 to 5 years
5 - 8% of the principal borrowed, capped at $1,200
$0
You'll receive an interest rate between 8.99% p.a. and 29.99% p.a. based on your risk profile
A flexible personal loan from MoneyMe with access to cash when you need it.
Latitude Personal Loan (Unsecured)

From 7.99% (fixed)
9.24%
$3,000
1 to 7 years
$250 (Loans under $5000 - $140)
$13
You'll receive a fixed rate between 7.99% p.a. and 19.99% p.a. based on your risk profile
Apply for what you need from $3,000 and use it for a range of purposes. Repay weekly, fortnightly or monthly.
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What features should you look out for in a $20,000 car loan?

Some of the features you should look out for in a car loan include:

  • Interest rates. Whether or not the interest rate is low is easy enough to spot. However, there is a difference between a fixed rate loan and a variable rate loan. A fixed rate loan has the same rate throughout the duration of the loan and offers peace of mind as your repayments remain the same. A variable rate loan fluctuates with the market and allows you to make extra repayments and redraw from them as necessary.
  • Fees. The fees that are associated with the loan is another consideration. No monthly fees are most beneficial. Two potential extra costs to watch out for are application fees and late repayment surcharges.
  • Balloon payments. It's important to know if you’re required to pay a balloon payment at the end of the loan. It means you are required to pay whatever is left on the loan when the term ends, possibly thousands of dollars.
  • Repayment flexibility. Whether or not your loan offers repayment flexibility is a feature to look out for. Some lenders allow you to tailor your repayment schedule to your cash flow, so you are able to pay weekly, fortnightly or monthly.
  • Do you own the vehicle? Owning the vehicle outright is important to consider as well. Although you might think you own the vehicle, this may not be the case depending on what type of loan you’ve decided to go with. Ensure that you own the vehicle if this is something you desire.

New vs used

There’s always going to be a new versus used vehicle debate. With a new vehicle, there is the peace of mind that comes with owning a brand-new car, like service warranty, no possibility of previous damage and let’s not forget that new-car smell. However, cars depreciate at a steep 40% in the next three years after owning a vehicle.

With a used car, you are able to benefit from a lower price if you get a well-maintained vehicle. While there is also the risk of going through a private sale and possibly not getting what you’ve paid for, this is less likely if you go through a registered motor vehicle reseller.

What are the main points to consider before you apply?

Some main points to consider before applying for the car loan include:

  • The loan cost. Although it might seem like you only owe $20,000, this isn’t entirely true. Once you factor in monthly fees, the cost of the interest rate that is applied to the loan and any late fees you might incur, this amount goes up considerably.
  • Personal situation. Suppose you come into some extra cash that you want to put towards your car loan. Have you chosen a loan that allows you to make additional payments? Is there a fee if you do? These are all important considerations.
  • Your employment situation. Is your current employment situation stable? Are you able to salary sacrifice in order to pay off your loan quicker? It's always beneficial to know these answers before applying for a loan.
  • Can you maintain a vehicle? In terms of a car’s running costs, factoring in the cost of fuel, insurance, vehicle registration, paying for your driver's licence and covering general vehicle servicing (if everything is running smoothly) expenses can add up quickly.

Have more questions about $20,000 car loans?

Should I get a secured or unsecured loan?

Ultimately, this is up to you. If you are able to put forward an asset as security, you can score a lower interest rate. However, if you don’t have an asset or are worried about losing the asset you’re putting up as security, an unsecured loan is a better option.

How old can my car be if I want to put it against my loan?

This depends on the lender. Some car loans will only accept cars that are a maximum of seven years whereas others don’t care how old the car is. Find out more in our used car loans guide.

What’s the maximum loan term for my car loan?

The maximum loan term varies between lenders. Some lenders will offer a five-year loan term whereas others will offer a ten-year loan term. Look into a variety of car loans and choose the one with the loan term that best suits your needs.


Picture: Shutterstock

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Car Loan Offers

Important Information*
Logo for IMB New Car Loan
IMB New Car Loan

You'll receive a fixed rate of 4.99% p.a.
A low minimum borrowing amount of $2,000 that you can use to purchase a new car or one up to two years old.

Logo for Beyond Bank Low Rate Car Loan "Special Offer"
Beyond Bank Low Rate Car Loan "Special Offer"

You'll receive a fixed rate of 4.89% p.a.
Take advantage of a competitive rate, pre-approval and no early repayment fees when you finance a car under two years old.

Logo for RACV New Car Loans
RACV New Car Loans

You'll receive a fixed rate from 4.99% p.a.
A larger loan of $5,000 or more to help you buy a new or used car. 5-hour pre approval available and no ongoing fees.

Logo for NRMA New Car Loan
NRMA New Car Loan

You'll receive a fixed rate of 4.99% p.a.
Purchase a new or used car up to 2 years old and benefit from a fixed rate and no monthly fees. Pre-approval available within 5 business hours.

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