$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 modelClick price for repaymentsTypeMore 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

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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.

$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Monthly Repayment View Details CTA
Plenti Car Loan
From
4.89%
(fixed)
5.44%
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.
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.
loans.com.au - New and Dealer Used Car Loan
3.99%
(fixed)
4.53%
You'll receive a fixed rate of 3.99% 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.
You'll receive a fixed rate of 3.99% 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.
Credit Concierge Car Loan
From
3.69%
(fixed)
4.23%
You'll receive a fixed rate of 3.69% p.a. with a comparison rate of 4.23% p.a.
Get access to over 20 providers to fund a new or used car.
You'll receive a fixed rate of 3.69% p.a. with a comparison rate of 4.23% p.a.
Get access to over 20 providers to fund a new or used car.
Wisr Secured Car Loan
From
4.74%
(fixed)
5.01%
You'll receive a personalised interest rate from 4.74% p.a. to 16.01% p.a. based on your risk profile
A flexible car loan from $5,000 - $63,000 with personalised rates and rewards for strong credit customers.

⭐Special Offer: Wisr's standard establishment fee $605 will be reduced to $195 for applications submitted through Finder. T&Cs apply.
You'll receive a personalised interest rate from 4.74% p.a. to 16.01% p.a. based on your risk profile
A flexible car loan from $5,000 - $63,000 with personalised rates and rewards for strong credit customers.

⭐Special Offer: Wisr's standard establishment fee $605 will be reduced to $195 for applications submitted through Finder. T&Cs apply.
Stratton Finance New Car Loan
From
3.69%
(fixed)
5.27%
You'll receive a fixed rate from 3.69% 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.
You'll receive a fixed rate from 3.69% 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 New Car Loan
From
4.99%
(fixed)
5.69%
You'll receive a fixed rate from 4.99% p.a.
Purchase a new or used car up to 3 years old and benefit from a fixed rate and no monthly fees. Pre-approval available within 5 business hours.
You'll receive a fixed rate from 4.99% p.a.
Purchase a new or used car up to 3 years old and benefit from a fixed rate and no monthly fees. Pre-approval available within 5 business hours.
Great Southern Bank Fixed Rate Car Loan
6.79%
(fixed)
7.16%
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.
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.
NAB Personal Loan Unsecured Fixed
From
6.99%
(fixed)
7.91%
You'll receive a fixed rate between 6.99% p.a. and 18.99% p.a. ( 7.91% p.a. to 19.83% p.a. comparison rate) based on your risk profile
Borrow from $5,000 to $55,000, with 1 to 7 year loan terms available. This loan comes with no fees for extra repayments and no early exit fees.
You'll receive a fixed rate between 6.99% p.a. and 18.99% p.a. ( 7.91% p.a. to 19.83% p.a. comparison rate) based on your risk profile
Borrow from $5,000 to $55,000, with 1 to 7 year loan terms available. This loan comes with no fees for extra repayments and no early exit fees.
Symple Loans Personal Loan
From
5.75%
(variable)
6.47%
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.
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.
SocietyOne Car Loan
From
5.95%
(fixed)
5.95%
You'll receive a fixed rate between 5.95% p.a. and 17.49% 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.
You'll receive a fixed rate between 5.95% p.a. and 17.49% 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.
Driva Car Loan
From
2.85%
(fixed)
4.39%
You'll receive a fixed rate from 2.85% p.a.
Borrow up to $250,000 with loan terms from 1 to 7 years. Get access to a range of lenders.
You'll receive a fixed rate from 2.85% p.a.
Borrow up to $250,000 with loan terms from 1 to 7 years. Get access to a range of lenders.
OurMoneyMarket Car Loan
From
5.35%
(fixed)
5.65%
You'll receive a fixed interest rate from 5.35% p.a. to 14.99% p.a. based on your risk profile.
Borrow between $2,001 and $75,000 to finance a new or used car up to 7 years.
You'll receive a fixed interest rate from 5.35% p.a. to 14.99% p.a. based on your risk profile.
Borrow between $2,001 and $75,000 to finance a new or used car up to 7 years.
NRMA Used Car Loan
From
6.24%
(fixed)
6.94%
You'll receive a fixed rate from 6.24% 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.
You'll receive a fixed rate from 6.24% 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.
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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.

Compare car insurance providers side-by-side and get quotes

Name Product Roadside Assistance Accidental Damage Storm Choice of Repairer Agreed or Market Value
Budget Direct Comprehensive
Optional
Optional
Agreed or Market
Finder's summary: Awarded the 2021 Finder Award for Car Insurance - Value in QLD, SA, TAS, VIC, WA and Car Insurance - Features in NSW, VIC, WA, this policy offers solid coverage at a low cost. Budget Direct's claims service has received a 4.2/5 based on nearly 5,000 customer reviews.

⭐ Current offer: Get 15% discount on first year's premium when you take out a policy online. T&Cs apply.

Who it might be good for: People who want a comprehensive policy without breaking the bank.
Australia Post Comprehensive
Optional
Agreed or Market
Finder's summary: Australia Post car insurance offers comprehensive cover for things like theft, fire, new for old replacement and emergency accommodation and transport. Cover also extends to anyone who uses your car, not just you.

⭐ Current offer: Get $75 off your first year’s premium when you buy online. T&Cs apply.

Who it might be good for: If multiple people use the one car and you don’t want to worry about listing all drivers.
Virgin Comprehensive
Optional
Optional
Agreed or Market
Finder's summary: Finalists for the 2021 Finder Awards for Best Car Insurance - Value in VIC, QLD, SA, WA and TAS, Virgin Comprehensive provides a good level of cover for a decent price.

⭐ Current offer: Get 15% off on your first year’s premium when you purchase a new eligible comprehensive car insurance online. T&Cs apply.

Who it might be good for: People who'd like to manage their policy online 24/7.
Qantas Comprehensive
Optional
Optional
Agreed or Market
Finder's summary: You'll be able to choose how comprehensive you want your cover to be with optional extras like choice of repairer and the option of agreed or market value.

⭐ Current offer: Earn Qantas Points for joining and paying your premium. Sign up today and earn up to 20,000 Qantas Points (points awarded will be based on your premium). T&Cs and eligibility apply.

Who it might be good for: People who'd like to earn Qantas Points.
Coles Comprehensive
Optional
Agreed or Market
Finder's summary: With Coles comprehensive car insurance, you could earn double flybuys points at Coles supermarkets and you can get $10 off your Coles grocery bill every time you redeem 2,000 Flybuys points. If your car is damaged, you could benefit from a one-week turnaround on repairs.

⭐ Current offer: Get 10% off your first year's premium when you take out a policy online. T&Cs apply.

Who it might be good for: Coles customers and Flybuys collectors.
QBE Comprehensive
Green Company
QBE Comprehensive
Optional
Agreed or Market
Finder's summary: QBE is a sustainable insurance company and also Finder's Green Insurer of the Year 2021 award winner. This policy offers the highest level of protection available from QBE including three-year new car replacement.

⭐ Current offer: Save $75 when you purchase a new comprehensive policy online. T&Cs apply.

Who it might be good for: Those that are looking for a more environmentally friendly insurance choice.
Huddle Black Comprehensive
Agreed or Market
Finder's summary: Huddle's black comprehensive is its cover with highest limits and exclusive benefits. It includes roadside assistance. You can also get up to $2,000 for emergency travel and accommodation and up to $30 million legal liability cover.

Who it might be good for: Someone who wants a 24/7 claims processing.
Youi Comprehensive
Optional
Agreed or Market
Finder's summary: Youi Comprehensive Car Insurance is one of the few providers to include roadside assistance in its policy. You'll also get access to YouiRewards which gives you discounts on furniture, parking and more. Youi also has a live chat feature on its site to talk through any questions.

Who it might be good for: People over 25 who want comprehensive cover with a focus on customer service.
Huddle Comprehensive
Optional
Agreed or Market
Finder's summary: Huddle's comprehensive policy will cover you if your vehicle is damaged or lost as a result of a collision, a natural event, a malicious act, theft or fire. It also includes up to $500 for essential repairs.

Who it might be good for: Someone who drives less than 15,000 km a year can opt for Pay As You Drive cover.
Bingle Comprehensive
Market
Finder's summary:Bingle consistently comes up as one of the cheaper insurers out there. It only covers the basics. You don't get to choose your own repairer, you're not covered for personal items in the car and unless you add it as an option, you won't get a hire car if your car is stolen. But this keeps its premiums low.

Who it might be good for: Someone who wants a low-cost option that covers them for the basics.
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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 4.88% 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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