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Can you pay off your car loan early?

Find out if you can save time and money by repaying your car loan early.

Updated

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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.

Like other types of loans, car loans generally require you to make repayments over a set period of time. However, some car loans may allow you to make additional repayments or pay off your entire loan early.

If you're considering a car loan and want the ability to pay it off early, read our guide to see which loans allow you to do so, and any fees you would need to pay.

Which car loans allow early repayment?

BrandCar loan(s)Can you repay early without penalty?Fees that apply
ANZANZ Online Secured Car LoanNo$50 administration fee plus $680 pro rata for unrecovered costs of providing the loan. Break costs may also apply.
AussieAussie Car LoanNoFees are determined by the lender. The amount will depend on how much you have left on your loan term and how much you still owe.
BankwestBankwest Car LoanNotransparent--green-tickAn early repayment fee applies if the loan is paid off in the first 24 months.
BankSABankSA Secured Personal LoanNo$150 if paid off within first 12 months, $100 if paid off after first the first 12 months and before the end of the term. Break costs also apply as determined by BankSA.
Bendigo BankBendigo Bank Secured Car LoanNo$20 fee for paying your loan back early.
Beyond BankBeyond Bank Special Low Rate, Low Rate, Fee Free and Flexi Car Loantransparent--green-tickNo fee applies.
Commonwealth BankCommonwealth Bank Secured Car LoanNoYou will be charged an early repayment adjustment if you repay your loan early.
CUACUA Fixed Rate Car Loantransparent--green-tickNo fee applies.
EsandaEsanda Car LoanNo$50 administration fee plus $680 pro rata for unrecovered costs of providing the loan. Break costs may also apply.
Gateway BankGateway Bank New Car Loan, Car up to 5 years and over 5 yearstransparent--green-tickNo fee applies.
IMBIMB New Car Loan, IMB Secured Personal Loantransparent--green-tickNo fee applies.
loans.com.auloans.com.au Car Loantransparent--green-tickEarly repayment fee applies if the loan is paid off before the last 12 months of the loan term.
NRMANRMA Car LoanNo$200 or 2% of the outstanding balance (whichever the greater) at the time the final payment is made. Applies for the first 75% of the original loan term only.
RACQRACQ New Car Loan and RACQ Used Car LoanNotransparent--green-tick2% or minimum $200 if paid before 75% of the loan term, otherwise $0.
RACVRACV Car LoanNoThe fee is $160 or 1.25% of your remaining loan amount, whichever is greater.
WestpacWestpac Car LoanNotransparent--green-tick$175 fee applies if you choose a term greater than 2 years and pay it out in less than 2 years. This fee is waived if you pay out your personal loan by refinancing to another Westpac personal loan.

IMB New Car Loan

IMB New Car Loan

4.99 % p.a.

fixed rate

5.34 % p.a.

comparison rate

  • No monthly fees
  • No early repayment fees
  • Borrow up to $75,000
Security Logo

100% confidential application

IMB New Car Loan

A low rate loan to finance new vehicles or cars up to two years old. Borrow up to $75,000.

  • Interest rate: 4.99% p.a.
  • Comparison rate: 5.34% p.a.
  • Interest rate type: Fixed
  • Application fee: $275.12
  • Minimum loan amount: $2,000
  • Maximum loan amount: $75,000
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$
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.
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.
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.

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.
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.
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%
$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.
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How do early repayments work?

There are a few different types of early repayments:
  • Additional or lump sum payments. These are made during the loan term and do not result in your loan being repaid in full. Lenders still may place restrictions on these payments, especially with fixed rate loans. On variable rate loans, you will find fewer restrictions and you may also be able to redraw additional payments using a redraw facility.
  • Repaying your entire loan on a variable rate loan. You will find fewer restrictions with a variable rate loan on repaying your entire loan amount before the end of the loan term. In this situation, you repay the loan balance on a variable rate loan or you will be out of your fixed rate period. Break fees are not likely to apply as lenders do not lose as much from letting you repay early.
  • Repaying your entire loan amount during a fixed rate period. This is where you will find the most restrictions applied. Repaying your entire loan early in this scenario involves paying whatever the loan balance is due to the lender during a fixed rate period, or where a fixed rate already applies to a loan. Here, break costs and administration fees are likely to apply to help the lender cover costs lost to them.

What is the benefit of paying your loan off early?

Repaying your car loan early can help lower the cost of your loan by limiting the amount of interest you pay. However, if you are in a position to repay your car loan early, you should always consider if any penalties or fees will apply, as the cost of these may be bigger than the savings you would make from repaying the loan early.

Car loans that allow early repayment

  • Beyond Bank Low Rate Car Loan "Special Offer": 5.16% p.a. comparison rate. A limited time offer – get a car loan with a 4.89% p.a. variable rate.
  • CUA Fixed Rate Car Loan: 7.16% p.a. comparison rate. A car loan suitable for new vehicle purchases with no monthly administration fees.
  • IMB New Car Loan: 5.34% p.a. comparison rate. A new car loan with no monthly service fees and no early repayment.
  • AutoCarLoans: 6.64% p.a. comparison rate. Autocarloans can match you with a loan that suits your needs.

What else should I know about car loan repayments?

Your car loan repayments will affect how you deal with your loan, so examine them carefully. Before you send through an application, make sure you have considered:
  • How often you make repayments. Lenders usually give you the option of making weekly, fortnightly or monthly repayments. This lets you line them up with your budget.
  • The flexibility of the repayment options. Check whether you are able to make additional repayments without penalty or if there is a cap on how many additional payments you can make.
  • How you need to make repayments. Repayments are usually direct debited out of your account automatically, but you may be given other options to pay off your loan. BPAY, electronic transfer and even in-branch deposits may be available.

Making additional repayments on your car loan can be a helpful option that can help you save down the track, but it's not the only feature that lenders have on offer. Remember to compare car loans across all fees, features and rates to find the right one for you.

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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2 Responses

  1. Default Gravatar
    OliverOctober 9, 2017

    Hi I’ve just paid off my car loan three years earlier and now I received final payment paperwork with a admin fees add in to it and it’s over $500.00.my question is; was I supposed to pay that admin fee when I pay my loan off early?

    • Default Gravatar
      DanielleOctober 10, 2017

      Hi Oliver,

      Thank you for contacting finder. We are a comparison website and general information service, we’re more than happy to offer general advice.

      That would depend on your lender. As you can see on the table above, different lenders have different policies. You may review your loan policy or contact your lender directly to verify.

      I hope this helps.

      Cheers,
      Danielle

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