$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 model Price Type
Ford Ranger XL Single cab Ford Ranger XL Single Cab Chassis – Low-Rider, manual $34,581 4x2 Ute Comparison review
Hands-on review
Mitsubishi Triton GLX+ Mitsubishi Triton GLX+ manual double-cab $38,990 4x4 Ute Comparison review
Picture not described Isuzu D-MAX Limited Edition X-Rider Manual $39,990* 4x4 Ute Comparison review
Holden Colorado Crew cab pick-up LS 4x4 Holden Colorado Crew cab pick-up LS 4x4 $39,990* 4x4 Ute Comparison review
Toyota Corolla ZR Hybrid Toyota Corolla ZR Hybrid $37,536 Hatchback car Comparison review
Hands-on review
Mazda3 G25 GT (with $,1500 Vision Technology pack) Mazda3 G25 GT (with $,1500 Vision Technology pack) $39,188 Hatchback car Comparison review
Hands-on review**
Hyundai i30 N-Line Premium Hyundai i30 N-Line Premium $38,923.30 Hatchback car Comparison 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 FWD Mazda CX-5 Maxx Sport FWD $38,740 Medium SUV Comparison review
Toyota RAV4 GXL Toyota RAV4 GXL $40,121 Medium SUV Comparison review
Hands-on review**
Kia Sportage SX Kia Sportage SX Plus 2.0L $39,490* Medium SUV Comparison review
Hands-on review**
Renault Koleos Formula Edition Renault Koleos Formula Edition $36,990 Medium SUV Comparison review
Hands-on review**
Nissan Qashqai STL Nissan Qashqai ST-L $37,002 Small SUV Comparison review
Mitsubishi ASX Exceed Mitsubishi ASX Exceed $35,740 Small SUV Comparison review
Ford Escape Ford Escape 2.0-litre EcoBoost AWD $40,522 Small SUV
Mazda CX-3 Akari LE Mazda CX-3 Akari LE $39,190 Small SUV
VW Polo GTI VW Polo GTI $35,940 Small car Comparison review
Fiat Abarth 595C Competizione Fiat Abarth 595C Competizione $39,450 Micro car
Ford Fiesta ST Ford Fiesta ST (with paint option and panoramic sunroof extra) $39,133 Small car
Toyota Camry SX (optional paint) Toyota Camry SX (optional paint) $38,473 Sedan
Ford Mondeo Ambiente (with optional paint) Ford Mondeo Ambiente (with optional paint) $37,794 Sedan
Holden Commodore RS (with optional paint) Holden Commodore RS (with optional paint) $39,558 Sedan
Kia Optima Si 2.4-litre GDI Kia Optima Si 2.4-litre GDI $33,990 Sedan

*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 car loan is to look for an offer with a:

  • Low interest rate (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.

Rates last updated January 26th, 2020
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Application Fee Monthly Service Fee Product Description Monthly Repayment
IMB New Car Loan
5.45% (fixed)
5.8%
$2,000
1 to 7 years
$250
$0
You'll receive a fixed rate of 5.45% 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.
Beyond Bank Low Rate Car Loan
5.49% (fixed)
5.73%
$25,000
1 to 7 years
$175
$0
You'll receive a fixed rate of 5.49% p.a.
Take advantage of a competitive rate, pre-approval and no early repayment fees when you finance a car under two years old.
Loans.com.au - New Car Loan
4.89% (fixed)
5.44%
$5,000
3 to 5 years
$400
$0
You'll receive a fixed rate of 4.89% 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.
RACV New Car Loans
From 5.69% (fixed)
6.39%
$5,000
1 to 7 years
$499
$0
You'll receive a fixed rate from 5.69% 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.
Stratton Finance New Car Loan
From 4.69% (fixed)
5.64%
$10,000
3 to 7 years
$700 (for private seller vehicles this fee is $608)
$9
You'll receive a fixed or variable rate depending on the lender you are approved with
Apply for up to $100,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.
Credit Concierge Car Loan
From 4.79% (fixed)
5.34%
$10,000
1 to 7 years
$400
$0
You'll receive a interest rate from 4.79% p.a. with a comparison rate from 5.34% p.a.
Get access to over 20 providers to fund a new or used car.
Westpac Car Loan
8.49% (fixed)
9.67%
$10,000
1 to 7 years
$250
$12
You'll receive a fixed rate of 8.49% p.a.
Finance a new or used car and benefit from convenient features for car buyers including a car search tool and the option to borrow extra for on-road costs.
St.George Secured Personal Loan - Fixed Rate
From 8.49% (fixed)
9.6%
$3,000
1 to 5 years
$195
$12
You'll receive a fixed rate from 8.49% p.a. based on the value of your car
Get a competitive rate and apply for a larger loan up to $80,000 when you attach a new or used car as security to the loan.
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.
NRMA New Car Loan
From 5.69% (fixed)
6.39%
$5,000
1 to 7 years
$499
$0
You'll receive a fixed rate of 5.69% p.a.
Purchase a new car with this loan and benefit from a fixed rate and no monthly fees. Pre-approval available within 5 business hours.
IMB Secured Personal Loan
6.45% (fixed)
6.8%
$2,000
1 to 5 years
$250
$0
You'll receive a fixed rate of 6.45% p.a.
Benefit from this competitive rate by securing the loan with a vehicle up to 6 years old. Use this flexible loan for any purpose.
Australian Military Bank Car Loan
From 5.71% (fixed)
6.57%
$1,000
1 to 7 years
from $100 to $500
$10
You'll receive a fixed rate between 5.71% p.a. and 8.66% p.a. based on your personal credit history
A flexible loan to help you finance a car, motorbike or boat up to five years old.
NRMA Used Car Loan
From 6.99% (fixed)
7.7%
$5,000
1 to 7 years
$499
$0
You'll receive a fixed rate from 6.99% 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.

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.

Related Posts

Car Loan Offers

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

You'll receive a fixed rate of 5.45% 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 5.49% 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 5.69% 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 Stratton Finance New Car Loan
Stratton Finance New Car Loan

You'll receive a fixed or variable rate depending on the lender you are approved with
Apply for up to $100,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.

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