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.

BrandCar loan/sCan you repay early without penalty?Fees that apply
ANZOnline 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.
BankSASecured 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 BankSecured Car LoanNo$20 fee for paying your loan back early.
Beyond BankSpecial Low Rate, Low Rate, Fee Free and Flexi Car Loantransparent--green-tickNo fee applies.
Commonwealth BankSecured Car LoanNoYou will be charged an early repayment adjustment if you repay your loan early.
CUAFixed 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 CUNew Car Loan, Car up to 5 years and over 5 yearstransparent--green-tickNo fee applies.
IMBNew Car Loan, Secured Personal Loan.transparent--green-tickNo fee applies. Loan.transparent--green-tickEarly repayment fee applies if the loan is paid off before the last 12 months of the loan term.
NRMACar LoanNo$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.
RACQNew Car Loan and Used Car LoanNotransparent--green-tick2% or minimum $200 if paid before 75% of the loan term, otherwise $0.
RACVCar LoanNoThe fee is $160 or 1.25% of your remaining loan amount, whichever is greater.
WestpacCar 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.

Stratton Finance New Car Loan Offer

Stratton Finance New Car Loan


5.49 % p.a.

fixed rate


6.62 % p.a.

comparison rate

  • Rates from 5.49% p.a.
  • Loan terms 1-10 years
  • Fast approval
Security Logo

100% confidential application

Stratton Finance New Car Loan Offer

Apply for Stratton Finance Car Loan for purchasing a new car and enjoy a great fixed interest rate.

  • Interest rate from: 5.49% p.a.
  • Comparison rate: 6.62% p.a.
  • Interest rate type: Fixed
  • Application fee: $499
  • Minimum loan amount: $18,000
  • Maximum loan amount: $100,000
Go to site

Car loans you can apply for

Rates last updated February 24th, 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
Stratton Finance New Car Loan
From 5.49% (fixed)
1 to 10 years
Benefit from a car broker with over 25 years experience
Beyond Bank Low Rate Car Loan
From 5.69% (fixed)
1 to 7 years
A great rate for cars under 2 years old.
bcu Special Car Loan
5.9% (variable)
1 to 5 years
Benefit from a competitive rate when you take out a bcu Access Account.
RACV New Car Loans
From 6.49% (fixed)
1 to 7 years
A competitive rate car loan from RACV with no monthly fees and 5-hour loan approval.
IMB New Car Loan
From 5.99% (fixed)
1 to 7 years
Borrow up to $75,000 for a new car up to two years old. Competitive 5.99% p.a. rate available to all approved applicants.
NRMA New Car Loan
From 6.49% (fixed)
1 to 7 years
Purchase a new car with an NRMA Car Loan with a fixed rate term and no monthly fees. Pre-approval available within 5 business hours.
Latitude Car Loan
From 6.99% (fixed)
1 to 7 years
A secured loan with a competitive rate that can help you finance a range of new or used vehicles.
Heritage Bank Car Loan
From 8.99% (fixed)
1 to 7 years
Apply for up to $100,000 to finance a new or used car at a competitive fixed rate.
IMB Secured Personal Loan
From 6.89% (fixed)
1 to 5 years
All approved applicants can access this competitive rate and use the loan to finance a range of purposes. Loan amounts up to $60,000 available.
RACV Personal Loan
From 7.49% (fixed)
1 to 7 years
Take advantage of a competitive rate by securing an asset to this loan. Use the funds for any purpose.
Latitude Personal Loan (Secured)
From 12.99% (fixed)
2 to 7 years
$250 (Loans under $4000 - $140)
Benefit from a tailored fixed rate with a loan that can be used for any purpose.
Westpac Car Loan
From 8.49% (fixed)
1 to 7 years
Finance a new or used car and benefit from great features for car buyers including a car search tool and the option to borrow extra for on-road costs.

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: 6.34% 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 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.

Picture: Shutterstock

Was this content helpful to you? No  Yes

Related Posts

Car Loan Offers

Important Information*
IMB New Car Loan

Borrow up to $75,000 for a new car up to two years old. Competitive 5.99% p.a. rate available to all approved applicants.

Beyond Bank Low Rate Car Loan "Special Offer"

A great rate for cars under 2 years old.

RACV New Car Loans

A competitive rate car loan from RACV with no monthly fees and 5-hour loan approval.

Heritage Bank Car Loan

Apply for up to $100,000 to finance a new or used car at a competitive fixed rate.

Ask an Expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, read the PDS or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.

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 $ question is; was I supposed to pay that admin fee when I pay my loan off early?

    • Staff
      DanielleOctober 10, 2017Staff

      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.


Ask a question
Go to site