Car loan refinancing
Learn about and compare car loan refinancing options in Australia.
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Read on to find out if it's right for you, how to refinance your car loan and compare your options now.
- Low fixed interest rate
- No ongoing fees
- Borrow from $5,000
100% confidential application
NRMA New Car Loan
You could get a new car with an NRMA Car Loan featuring a fixed rate of interest and no monthly fees.
- Interest rate from: 4.99% p.a.
- Comparison rate: 5.69% p.a.
- Interest rate type: Fixed
- Application fee: $499
- Minimum loan amount: $5,000
- Maximum loan amount: $130,000
Popular car loan refinancing options
- Beyond Bank Low Rate Car Loan "Special Offer": 5.01% p.a. comparison rate. A limited time offer – get a car loan with a 4.69% p.a. variable rate.
- RACQ Bank Car Loan Special: 6.16% 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.
- bcu Car Loan: 6% p.a. comparison rate. A flexible car loan with redraw facility and fee-free early payout.
Why should I refinance my car loan?
How does car loan refinancing work
Car loan refinancing example
You received a car loan for $20,000 with an interest rate of 12%. You have already paid $5,000 off the loan, leaving you with $15,000 left to pay.
You choose to refinance your loan with another lender offering an interest rate of 8%. You apply for a $15,000 loan with the new lender and use the funds to pay off the remaining amount on your original loan.
You then continue to make repayments on the new loan, but are now paying 8% interest, instead of 12%, saving money in the process.
How to refinance your car loan in five steps:
Things to keep in mind with car loan refinancing
- The amount you pay over the life of the loan will be less. This is very important to check. Less interest does not always mean lower weekly repayments, but the overall amount should be lower over the life of the loan. Remember to take into account up-front and ongoing fees as well as the loan term you're asking for and use a car loan repayment calculator to determine the cheaper option.
- You won't pay more interest over the loan term. If you extend your loan term, you may end up paying more in interest over the course of the loan. While the size of your repayments will be lower, you will have to make more repayments, meaning you'll pay more interest.
- The loan has the features that you want. If you want to be able to make extra repayments, repay the loan early, use a redraw facility or an insurance product bundle, make sure the new lender offers this.
- The lender is legitimate. A number of lenders operate in the car finance space and it is your responsibility to choose one that is reputable. See how transparent the lender is with rates and fees and how easy they are to contact before deciding on a new loan.
- Check if you'll be charged a fee for paying off your loan early. If so, factor in the cost of the fee when working out if you'll save money by refinancing.
Saving money on your car loan by refinancing is great, but don't let the savings stop there. By comparing car insurance policies you could save even more! Sound good? Read our cheap car insurance and best car insurance guides.
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Car Loan OffersImportant Information*
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.
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.
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.
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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