car-loan-early-repayments

Can you pay off your car loan early?

What's involved with repaying your car loan early? Find out if you can save time and money.

Car loans can be a great financial product to help you get on the road. However, there are a few features you need to be aware of before applying to make sure you don't restrict yourself down the track.

One of these is the ability to repay your loan early. As car loans are secured and many come with a fixed interest rate, lenders place restrictions around whether you can repay your loan early. If lenders do let you repay early you're usually charged a fee. Find out everything you need to know in the guide below.

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.

Here are the brands that let you pay off your car loan early, including fees that may apply.

Brand Car loan/s Can you repay early without penalty? Fees that apply
ANZ Online Secured Car Loan No $50 administration fee plus $680 pro-rata for unrecovered costs of providing the loan. Break costs may also apply.
Aussie Aussie Car Loan No Fees 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.
Bankwest Bankwest Car Loan Notransparent--green-tick An early repayment fee applies if the loan is paid off in the first 24 months.
BankSA Secured Personal Loan No $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 Bank Secured Car Loan No $20 fee for paying your loan back early.
Beyond Bank Special Low Rate, Low Rate, Fee Free and Flexi Car Loan transparent--green-tick No fee applies.
Commonwealth Bank Secured Car Loan No You will be charged an early repayment adjustment if you repay your loan early.
CUA Fixed Rate Car Loan transparent--green-tick No fee applies.
Esanda Esanda Car Loan No $50 administration fee plus $680 pro-rata for unrecovered costs of providing the loan. Break costs may also apply.
Gateway CU New Car Loan, Car up to 5 years and over 5 years transparent--green-tick No fee applies.
IMB New Car Loan, Secured Personal Loan. transparent--green-tick No fee applies.
loans.com.au Car Loan. transparent--green-tick Early repayment fee applies if the loan is paid off before the last 12 months of the loan term.
NRMA Car Loan No $200 or 2% of the outstanding balance (whichever the greater) at the time the final payout is made. Applies in the first three-quarters of the original loan term only.
RACQ New Car Loan and Used Car Loan Notransparent--green-tick 2% or minimum $200 if paid before 75% of the loan term, otherwise $0.
RACV Car Loan No The fee is $160 or 1.25% of your remaining loan amount, whichever is greater.
Westpac Car Loan Notransparent--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

5.89 % p.a.

fixed rate

6.24 % 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: 5.89% p.a.
  • Comparison rate: 6.24% p.a.
  • Interest rate type: Fixed
  • Application fee: $250
  • Minimum loan amount: $2,000
  • Maximum loan amount: $75,000
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Car loans you can apply for

Rates last updated October 22nd, 2018
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Monthly Service Fee Application Fee Product Description Monthly Repayment
IMB New Car Loan
5.89% (fixed)
6.24%
$2,000
1 to 7 years
$0
$250
You'll receive a fixed rate of 5.89% 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.
Loans.com.au - New Car Loan
5.44% (fixed)
5.99%
$5,000
3 to 5 years
$0
$400
You'll receive a fixed rate of 5.44% p.a.
Finance a new car and benefit from features such as fast approval, no ongoing fees and an optional balloon payment.
Latitude Motor Vehicle Loan
From 6.99% (fixed)
8.1%
$5,000
1 to 7 years
$10
$295
You'll receive a fixed rate between 6.99% p.a. and 14.99% p.a. based on your risk profile
Apply for a loan from $5,000 to finance a new or used car. Flexible repayments and options to finance a classic car.
Stratton Finance New Car Loan
From 5.29% (fixed)
6.56%
$18,000
1 to 7 years
$8.90
$459.20
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.
Beyond Bank Low Rate Car Loan
From 5.69% (fixed)
5.97%
$25,000
1 to 7 years
$0
$175
You'll recive a fixed rate of 5.69% p.a.
Take advantage of a competitive rate, pre-approval and no early repayment fees when you finance a car under two years old.
St.George Secured Personal Loan - Fixed Rate
From 8.49% (fixed)
9.6%
$3,000
1 to 5 years
$12
$195
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.
Westpac Car Loan
From 8.49% (fixed)
9.67%
$10,000
1 to 7 years
$12
$250
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.
RACV New Car Loans
From 5.99% (fixed)
6.55%
$15,000
1 to 7 years
$0
$399
You'll receive a fixed rate of 5.99% p.a.
A larger loan of $15,000 or more to help you buy a new or used car. 5-hour pre approval available and no ongoing fees.
IMB Secured Personal Loan
6.89% (fixed)
7.24%
$2,000
1 to 5 years
$0
$250
You'll receive a fixed rate of 6.89% 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.
Community First Credit Union New Car Loan - Variable
From 5.34% (variable)
6.1%
$10,000
1 to 7 years
$5
$195
You'll receive a variable rate of 5.34% p.a..
Finance a brand new car, demonstrator vehicle, boat, caravan or motorbike and benefit from a competitive variable rate. Loans from $10,000

Compare up to 4 providers

Car loans that allow early repayment

  • Beyond Bank Low Rate Car Loan "Special Offer": 5.97% p.a. comparison rate. A limited time offer - get a car loan with a 5.69% p.a. variable rate.
  • CUA Fixed Rate Car Loan: 6.92% p.a. comparison rate. A car loan suitable for new vehicle purchases with no monthly administration fees.
  • imb New Car Loan: 6.24% 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 repayments weekly, fortnightly or monthly. 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 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.

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Car Loan Offers

Important Information*
IMB New Car Loan

You'll receive a fixed rate of 5.89% 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.

Loans.com.au - New Car Loan

You'll receive a fixed rate of 5.44% p.a.
Finance a new car and benefit from features such as fast approval, no ongoing fees and an optional balloon payment.

Latitude Motor Vehicle Loan

You'll receive a fixed rate between 6.99% p.a. and 14.99% p.a. based on your risk profile
Apply for a loan from $5,000 to finance a new or used car. Flexible repayments and options to finance a classic car.

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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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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