$40,000 car loans

$40,000 cars and tips on making your money go a long way

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$40,000 goes a long way when buying a new or used car. It'll get you into pretty much any type of daily driver vehicle you'd like, from a mid-tier 4WD ute like the Mitsubishi Triton GLX+ ($38,990) right up to the highly specced Mazda3 G25 GT (with an optional Vision Technology pack costing $1,500) for $39,188.

Using this guide, you'll see what's available for the money and learn all about car loans. You can also quickly compare available loans and kickstart the application process.

Compare $40,000 car loans

Help me pick a $40,000 car

2020 car modelPriceTypeMore info
Ford Ranger XL Single cabFord Ranger XL Single Cab Chassis – Low-Rider, manual$34,5814x2 UteComparison review

Hands-on review
Mitsubishi Triton GLX+ Mitsubishi Triton GLX+ manual double-cab$38,9904x4 UteComparison review
Picture not describedIsuzu D-MAX Limited Edition X-Rider Manual$39,990*4x4 UteComparison review
Holden Colorado Crew cab pick-up LS 4x4Holden Colorado Crew cab pick-up LS 4x4$39,990*4x4 UteComparison review
Toyota Corolla ZR HybridToyota Corolla ZR Hybrid $37,536Hatchback carComparison review

Hands-on review
Mazda3 G25 GT (with $,1500 Vision Technology pack)Mazda3 G25 GT (with $,1500 Vision Technology pack)$39,188Hatchback carComparison review

Hands-on review**
Hyundai i30 N-Line PremiumHyundai i30 N-Line Premium$38,923.30Hatchback carComparison review

Hands-on review**
Kia Cerato GT 1.6T-GDI (with optional $520 paint)Kia Cerato GT 1.6T-GDI (with optional $520 paint)$33,525.60*Hatchback car

Comparison review

Hands-on review

Mazda CX-5 Maxx Sport FWDMazda CX-5 Maxx Sport FWD$38,740Medium SUVComparison review
Toyota RAV4 GXLToyota RAV4 GXL$40,121Medium SUVComparison review

Hands-on review**
Kia Sportage SXKia Sportage SX Plus 2.0L $39,490*Medium SUVComparison review

Hands-on review**
Renault Koleos Formula EditionRenault Koleos Formula Edition$36,990Medium SUV

Comparison review

Hands-on review**

Nissan Qashqai STLNissan Qashqai ST-L$37,002Small SUVComparison review
Mitsubishi ASX ExceedMitsubishi ASX Exceed$35,740Small SUVComparison review
Ford EscapeFord Escape 2.0-litre EcoBoost AWD$40,522Small SUV
Mazda CX-3 Akari LEMazda CX-3 Akari LE$39,190Small SUV
VW Polo GTIVW Polo GTI$35,940Small carComparison review
Fiat Abarth 595C CompetizioneFiat Abarth 595C Competizione$39,450Micro car
Ford Fiesta STFord Fiesta ST (with paint option and panoramic sunroof extra)$39,133Small car
Toyota Camry SX (optional paint)Toyota Camry SX (optional paint)$38,473Sedan
Ford Mondeo Ambiente (with optional paint)Ford Mondeo Ambiente (with optional paint)$37,794Sedan
Holden Commodore RS (with optional paint)Holden Commodore RS (with optional paint)$39,558Sedan
Kia Optima Si 2.4-litre GDIKia Optima Si 2.4-litre GDI $33,990Sedan

*Currently on offer

**Different model tested

Quick car loan guide

Finding car loans confusing? Don't worry, we're here to help. The TL;DR version of getting a good loan is to look for an offer with a:

  • Low interest rate car loan (so you pay the minimum possible amount to the lender over the course of the loan term)
  • Secured or unsecured – Opting for a secured car loan sees your car held as collateral on the loan, but can bring a lower interest rate. Unsecured loans don't have the same requirements for security, but they tend to have higher interest rates.
  • Low fees – Make sure you check whether there's an application or early repayment fee on your loans. Obviously, the lower those charges, the less you'll spend.

Need help understanding car loans?

Are you confused about interest rates, secured versus non-secured loans, fees, balloon payments and other financial lingo?

Don't worry, we've produced an easy-to-understand, concise car loan guide. The guide will help you get to grips with the jargon, show you how to apply for a car loan and teach you the major differences between all the different types of financial products out there. There are even more tips on how to reduce the monthly cost of a car loan.

How can I stretch my budget further?

So you're looking at cars around the $40k mark; how can you make your money go as far as possible?

Look out for offers and promotions

Car dealers are almost always running some kind of sale, it isn't just an EOFY thing. Keeping an eye on their websites could result in you spotting a really sweet deal. In some cases, they could knock thousands off the driveaway price in order to move the car, so be ready and waiting for the offers. Sometimes, the promotions include longer warranties, free/cut-price servicing, extras or packs for no cost and other goodies.

Be open to a lesser-known brand, or lower spec

Image seems to be really important to some people and aligning yourself with a prestigious brand is the way to go. But if you're not that bothered about having the best "badge" on your car and are open to buying a rival vehicle, you could cash in on a lower driveaway price and sometimes a better spec than the most prominent car in the segment.

If you really must have the car from brand "X", consider lowering your expectations for equipment. Dropping down just one trim grade might lose you a handful of conveniences, but it could shave $2000 from the price. Work out what the minimum level of tech and accessories you'll accept is and then work from there.

Go for a manual transmission

Manual transmission cars aren't just for motoring purists, they are for those who like to save money on a car purchase. How much could you hang on to in your wallet? Typically a manual cog-swapper may be up to $1,000 less expensive than the equivalent car with an auto.

Free paint options

Metallic, mica and pearlescent paints are extras that bump up car purchase prices. Almost all carmakers offer a couple of no-cost colours; if you stick to that limited palette, you could save up to $1,000 to boost you up to a higher trim level.

Skip the options

Ticking all the option boxes might be tempting, imagining yourself driving along in a protected bubble of pure bliss, but they quickly bloat the price of your car. You do tend to pay a premium for factory-fitted extras, so if you're willing to source and organise fitting of must-have options through the established aftermarket, you can save a packet.

Run-out models

If you're super serious about saving money and making your $40,000 go as far as possible, take a look at run-out models. These cars are usually less in demand because they've been sat on a forecourt or in a dealership gathering dust. Sometimes, they've been kicking around so long that they may no longer be current. Perhaps a recent facelift of the car model has resulted in buyers looking over the older vehicle in favour of the latest gen.

Car manufacturers recognise this and heavily discount these "run-out" models. Most car brands have a page on their site listing them, while others manage it on a dealership level. These may require a little more effort to locate.

Haggle

There's almost always some leeway in a car's sticker price. Dealers are under pressure to make sales and meet targets, plus they get incentives for selling a car. So take advantage of this. Once you've found the car you want, offer them a fair but lower figure and see if they bite. Unless it's a vehicle in high demand, you're in the strongest position. The least they can say is no. Spending a bit of time to hammer out a deal could knock hundreds of dollars off the list price or bag you some normally paid options for free.

Pre-approval

If you already know what car you're after, you can apply for a pre-approval car loan. This way, you've got some confirmation you can get the money and be in a strong position to negotiate on the price. If a salesperson is aware you're keen on buying the car there and then, they'll probably pull out all the stops to get you to sign the sales sheet and give you the keys.

Go for a smaller car

Being willing to go down a car size will benefit you in stretching your finances. There can be a substantial list price difference between a medium and small size car, or a single-cab and double-cab ute (even between 4x4 and 4x2 variants). There are other benefits too, like a lower kerb weight and possible improved fuel economy.

Consider used

New cars suffer from depreciation, but the older a vehicle gets, the slower it decreases in value. If you're not dead set on getting a new car, buying a used one could save you a heap. Let someone else deal with pushy salespeople and pay the depreciation. If you know what you're doing, buying a used car is a very sensible proposition, especially when being money-wise.

Be wary of in-house finance

Dealers are encouraged to steer buyers towards their in-house financing options, which are attractive because they seem like they'll require less effort on your part to organise. But the rates on the loans tend not to be as competitive as arranging your own car loan. Or, in order to market a tempting loan rate, they might ask for a chunk up-front as down payment and then a balloon payment at the end of the agreement. That leaves you having to find thousands of dollars to meet those terms.

Compare $40,000 car loans and save

Using our simple comparison tools here at Finder, you can quickly sift through the various car loans on offer, understanding the associated fees and picking a car loan lender that could save you hundreds of dollars over the loan.

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
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. Settle the loan before 30 November 2021 and enter the draw to win a $1,000 fuel gift voucher. T&Cs apply.
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.
Latitude Personal Loan (Secured)
From 5.99% (fixed)
7.26%
$3,000
1 to 7 years
Loans under $5000 - $140
$13
You'll receive a fixed rate between 5.99% p.a. and 21.99% 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. You can check your interest rate before applying with no impact to your credit score.
Wisr Secured Car Loan
From 5.19% (fixed)
5.46%
$5,000
3 to 7 years
$195 (Includes PPSR registration and private sale fee, if applicable)
$0
You'll receive a personalised interest rate from 5.19% p.a. to 17.69% p.a. based on your risk profile
A flexible car loan from $5,000 - $50,000 with personalised rates and rewards for strong credit customers.

NRMA New Car Loan
From 4.99% (fixed)
5.69%
$5,000
1 to 7 years
$499
$0
You'll receive a fixed rate from 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.
Plenti Car Loan
From 4.89% (fixed)
5.44%
$2,000
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.
Credit Concierge Car Loan
From 3.99% (fixed)
5.08%
$10,000
1 to 7 years
$350
$8.50
You'll receive a fixed rate of 3.99% p.a. with a comparison rate of 5.08% 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 rate from 4.05% p.a. 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.
NRMA Used Car Loan
From 6.49% (fixed)
7.19%
$5,000
1 to 7 years
$499
$0
You'll receive a fixed rate from 6.49% p.a.
Finance a used car with NRMA and benefit from a fixed rate term and no monthly fees. Pre-approval available within 5 business hours.
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% (13.56% comparison rate) or less. See Comparison rate warning in (i) above.
SocietyOne Car Loan
From 6.99% (fixed)
6.99%
$5,000
2 to 5 years
from 0% to 5% of the total loan amount
$0
You'll receive a fixed rate between 6.99% 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.
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 25.99% p.a. based on your risk profile
Borrow up to $50,000 to pay for what you need.
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Compare up to 4 providers

How do I apply for a $40,000 car loan?

You can apply online. Use our above comparison table, click the link to the loan provider's site and follow their instructions. You'll need the following:

  • ID – commonly a passport or driver's licence.
  • Income and financial statements – Three recent payslips or two years of self-employed tax returns as proof of income. You'll also need to show current outgoings and details of other loans or credit.
  • Vehicle details – If you've already found a car, you'll be asked for more information about it.

What happens after I submit my application?

Our general car loans guide explains what happens behind the scenes after you've started the car loan application process.

More guides on Finder

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 4.69% 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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