Car Loan Finder™ – Compare car loans and motor finance

Find out how to drive away with a better rate.

Before you sign on the dotted line with the car loan your bank is offering, compare your options from a wide range of brands. There are some incredibly cheap car loans out there, offered by lenders you might otherwise never have heard of that could save you money. The key to finding cheap car loans is to be sure you choose the right loan type to suit your financial needs. It's also important to check what other terms and conditions might be attached to your car loan, as hidden fees and charges could end up costing you far more than you expect.

IMB New Car Loan

IMB New Car Loan

Apply for IMB New Car Loan and enjoy a great low fixed interest rate with no ongoing fees.

  • Interest Rate From: 6.34% p.a.
  • Comparison Rate: 6.62% p.a.
  • Interest Rate Type: Fixed
  • Application Fee: $199
  • Minimum Loan Term: 1 year
  • Maximum Loan Term: 7 year
  • Minimum Loan Amount: $2,000
  • Maximum Loan Amount: $75,000

Car Loans you can apply for right now

Rates last updated December 11th, 2016
$
Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Application Fee Monthly Repayment
IMB New Car Loan
This fixed rate new car loans up to 2 years old features no early repayment penalties
From 6.34% (fixed) 6.62% $2,000 1 to 7 years $199 Go to site More
CUA Fixed Rate Car Loan
A competitive car loan that offers flexible repayment options and no account keeping fees.
From 6.79% (fixed) 6.92% $15,000 1 to 7 years $0 Go to site More
RACV Car Loans
Enjoy this fixed rate new car loan offer from RACV. No ongoing fees.
From 6.2% (fixed) 6.73% $15,000 1 to 7 years $378 Go to site More
Matchacar Financing
Get a tailored financing solution for buying your next car.
From 5.35% (fixed) 6.04% 1 to 7 years $350 Go to site More
NRMA Car Loan
Purchase a new car with an NRMA Car Loan with a fixed rate term and no monthly fees.
From 6.2% (fixed) 6.73% $15,000 1 to 7 years $378 Go to site More
IMB Secured Personal Loan
A secured loan from IMB with flexible repayment features
From 7.39% (fixed) 7.67% $2,000 1 to 5 years $199 Go to site More
RACQ New Car Loan
A low fixed rate loan from RACQ suitable for buying a new car.
From 6.2% (fixed) 6.73% $15,000 1 to 7 years $378 Go to site More
Latitude Personal Loan (Secured)
Can be used for whatever purpose: renovating, buying a car, booking a holiday. Funds can be in your account in as little as 24 hours.
From 12.99% (fixed) 14.2% $3,000 2 to 7 years $250 (Loans under $4000 - $140) Go to site More
Bank of Melbourne Secured Car Loan
A low rate personal loan from Bank of Melbourne with variable or fixed option.
From 8.49% (fixed) 9.39% $3,000 1 to 5 years $195 Go to site More
BankSA Fixed Rate Car Loan
Apply for a fixed rate car loan from multi-award winning BankSA.
From 8.49% (fixed) 9.39% $3,000 1 to 5 years $195 Go to site More

The finder.com.au list of car loan comparisons

Compare the features of the car loans below before applying.

Car LoanInterest Rate
5.69% p.a.
6.2% p.a.
6.2% p.a.

What do you want to learn about?

Guide to car loans

Learn about:

  • How a car loan works
  • What types of car loans are available
  • What to check before you apply

How does a car loan work?

Car loans can work differently depending on what type of loan you take out and what kind of car you're looking to purchase. Generally, the following steps will apply:

  1. You apply for finance. Once you've chosen your car loan you need to submit your application. Unsecured loans will only require your personal and financial details, but secured loans will also need information about the car.
  2. The lender approves your loan. Car loan approvals can happen on the same day or they may take up to 10 days. You may also be able to receive conditional approval, whereby you will be told how much you are likely eligible for so you can go car shopping knowing how much you have to spend.
  3. The car is purchased using the funds. This can be handled a few different ways. If you're buying a car in a private sale, your lender may be able to pay the seller directly or give you a cheque to pay it yourself. If you're purchasing from a dealership the lender will usually pay them directly. Unsecured loans will require you to arrange the payment yourself.

What types of car loans are there?

There are a wide variety of car financing options out there, and there are features that differentiate those options.

  • Secured personal loan

With a secured car loan, the vehicle you buy is used as collateral security for the loan. The lender has the right to repossess your vehicle if you default on your loan. As this type of loan is less of a risk to the lender, the rates for secured loans will usually be lower.

  • Unsecured personal loan

With unsecured car loans, the lender doesn't use any of your assets as security for the loan. This means they have no asset to repossess if you stop making your loan repayments. These loans come with higher interest rates but you also have more flexibility with the way you use your loan.

  • Chattel mortgage

If you're self-employed and purchasing a car primarily for business use, you can consider a chattel mortgage. The lender you apply with takes out a "mortgage" over your car while you make monthly payments towards the vehicle. Once it is paid in full the mortgage is removed and you own the car outright. Don't forget the 2015 Australian Government $20,000 tax break.

  • Car hire purchase

Self-employed borrowers also have the option of financing a car using a car hire purchase option. Every repayment made towards a car hire purchase agreement reduces the balance owing on the purchase price of the car.

If you're a self-employed borrower, it's important you discuss the different car loan and financing options with an accountant before making a decision.

  • Novated lease

A novated lease can be an option for employees who are able to make an arrangement with their employers. Essentially, the lender purchases the car and your employer makes the lease payments on the vehicle out of your before-tax salary. This can potentially help reduce your taxable income, resulting in you paying less tax overall.

At the end of the novated lease term you have the option of purchasing the vehicle outright for an agreed upon sum, or giving that one back and upgrading to a different car, where you'll enter into a new lease agreement.

  • Car lease

For the self-employed, a car lease can also be used to buy a car for business purposes. The lender purchases the vehicle and you make regular lease payments until the end of the agreement.

A commercial car lease may give you the option to purchase the car at the end of the lease term at a reduced price or you can choose to give the car back and enter into a new lease agreement for a different vehicle.

Things to look at before you apply

Before you apply for any loan, it's always a good idea to check as much as you can about the offer you're getting. Here are some things you need to look for before you proceed.

    • The interest rate

The interest rate charged on your car loan will play a part in how much your repayments will be. Always know what rate you're being offered and take the time to compare other lenders to be sure the offer is competitive.

    • The actual loan term

Car loans can be set over loan terms as short as one year or up to as long as seven years. Some lenders, usually dealership finance providers, will give you a set loan term which comes with a balloon payment at the end of it. Check if your repayments will pay off your loan or if you'll need to cover more at the end.

    • How your repayments will work

Ask how often you need to make repayments, how you make them and check if you're able to make extra repayments or repay your loan early without penalty.

    • What fees you will be charged

There are lenders that charge a monthly account fee or administration fee on their car loans. This can range anywhere from $5 per month up to $15 per month, depending on the type of car loan you're applying for. Establishment fees, usually between $100 and $600, can also be charged.

    • If the lender requires insurance

As the lender will be using your car as collateral security for your loan, they may insist that the vehicle is properly insured at all times until the loan is fully repaid.

Car on the beach

Tips for a better car loan

Learn about:

  • Making sure you get the cheapest car loan
  • How to get a lower rate
  • Ways you can reduce your repayments

When the cheapest interest rate isn't the cheapest car loan

When most people go hunting for the cheapest car loan, they immediately look for a low interest rate and believe they're getting a great deal. Unfortunately, it is possible for the car loan with the cheapest rate to end up costing you more over the term of the loan if you're not careful.

How the cheapest rate could cost you more:

Consider a car that costs $25,000. One lender is offering a rate of 8% p.a. over five years and another is offering a rate of 9% p.a. The only difference is the fees. Take a look at how much it could cost you by just opting for the cheapest rate:

Lender ALender B
Loan amount$25,000$25,000
Interest rate8% p.a.9% p.a.
Loan term5 years5 years
Monthly account fee$20$0
Establishment fee$0$200
Total monthly cost$532.91$518.96
Total repayment amount$32,275$31, 588

In the above example, the interest rate that was higher turned out to be the cheaper option. This was despite the initial upfront cost.
Make sure you consider all costs before you apply for a car loan and use a comparison rate calculator to determine your repayments.

How to get a lower interest rate

  • Be aware of interest rates in the market

If you take the time to shop around on finder.com.au, you'll get a strong idea of what interest rates are available with a range of lenders. This gives you plenty of ammunition when it comes to negotiating with your own lender.

  • See if you can negotiate a price with the seller

If you're keen to stay with your own bank or credit union for your car loan needs, take your interest rate information with you when you make your enquiries. This will encourage the lending officer to see if there is any room to take a few extra points off the interest rate they offer you.

  • Take out car dealership finance

When you apply for a loan through the finance officer at a car dealership, you have lots of room to negotiate on rates. This is because the dealership often receives their loans at discounted rates, leaving them some extra room to bump up the rate you pay. That margin between what they pay to the lender and you pay to them forms their 'trail' commission. In other words, every time you make a payment, some of it goes towards paying interest to the lender and some goes to paying commission to the car dealership. Haggle and negotiate on the rates you're offered through the car dealership. They usually have around 2% that they can drop from the initial rate they may have quoted you.

  • Can you get a package deal?

Some banks will offer a discount off their advertised interest rates if you also have other banking products with them. If you already have a mortgage, a credit card and a transaction account with one bank, ask if they will give you a discount on your car loan if you add that to your package.

Ways you can reduce your monthly repayments

It's always possible to reduce the payments you make on your car loan each month. The key is to ensure that you're not paying more than you really should over the entire term of the loan. Here are some ways you can reduce your minimum monthly payments.

  • Borrow less

It might sound obvious, but it's true. If you can borrow even a little bit less on your loan amount you'll end up paying less on your monthly repayments. Borrowing $5,000 over a five-year loan term adds up to $1,000 per year extra you have to pay back, plus the interest charged on that amount as well. This adds up to approximately $90 per month out of your pocket.

  • Consider a residual balloon payment

When you apply for a car loan that has a residual balloon payment remaining at the end of the term, you can drastically reduce your monthly repayments. For example, if you borrow $30,000 and you leave a $10,000 residual balloon payment to be paid at the end of the loan term, your repayments will be calculated based on the $20,000 to be repaid over five years, plus interest on the entire $30,000. Keep in mind you'll need to cover this cost at the end of the term, or refinance it with the lender.

  • Opt for a longer loan term

When you choose a longer loan term, the amount you're required to pay each month is reduced. Unfortunately, the lender also gets to charge you interest on your debt for a longer period of time, so you could end up paying far more in interest over the term of the loan.

girl-getting-keys-to-car

How to apply for a car loan

Learn about:

  • What you need to apply
  • Car loan eligibility
  • The car loan approval process in Australia

What you'll need to apply

Below is a checklist of some of the information and documentation you may need to supply for your car loan application.

Identification
  • Driver's licence OR
  • Passport OR
  • Birth certificate
  • Medicare card may be required as additional documentation
Income and employment
  • Three recent payslips
  • Two years of tax returns (if self-employed)
  • Your after-tax income
  • Employment information and employer's contact details
Assets and liabilities
  • Details of properties or large assets (such as a car) you own
  • Your ongoing expenses
  • Credit card or store card limits
  • Details of loans or overdrafts
Details of the car
  • The make, model, year and colour of the car
  • Vehicle Identification Number (VIN) or Chasis number
  • Engine number
  • Registration number
  • Purchase price

The loan approval process in Australia

Getting your car loan approval might seem quick, but there are several stages your application needs to progress through before your money is released to the seller of the car.

Step One. To get the approval process started, you will need to fill out and sign an application form. This can be done in person at the bank branch or at the car dealership, or alternatively, can be filled out using the lender's online application form on the website.

Step Two. Once your application has been received, it's reviewed by a credit officer. If everything is in order, you should receive your conditional approval almost immediately.

Step Three. The Final Approval stage is where the lender may request you to supply any documentation to support your application. This includes your identification, payslips or income verification, bank statements and any other pertinent information required.

Step Four. Once your final approval has been received, you'll be asked to sign your loan documentation. This is your agreement with the bank to repay the amount of money you're borrowing over a specified loan term at an agreed interest rate.

Step Five. The lender will fund your loan. This can happen in a number of ways: If your loan is secured it will usually be paid directly to the person/dealer you're buying the car from or the funds will be given to you as a cheque. If it's unsecured you will usually receive the funds directly and be responsible for purchasing the car.


Questions you may, or may not, have had about car loans

If you still haven't found what you are looking for, we're confident you'll find it below.

Can anyone apply for a car loan?

Yes, if you meet the eligibility requirements. As long as you are older than 18, you're a permanent resident of Australia and you can verify that you earn a steady income you may be able to qualify.

How much can I borrow on a car loan?

The amount you're able to borrow is determined based on your income and current liabilities. There may also be minimum car loan amounts set by individual lenders. Lenders usually offer between $5,000 and $80,000 if the loan is secured.

Can I get a pre-approval for a car loan?

Yes. Pre-approval is a great way to work out how much you can comfortably borrow and what your repayments will be before you head out car shopping.

How long does it take to get an approval?

The approval process for car loans is usually very quick. In most cases you should get a conditional approval in a couple of hours, but it may take longer depending on the lender.

Can I include the insurance and on-road costs in my loan amount?

Some lenders will allow you to include the costs of your car insurance premium and other costs associated with the purchase in your loan amount. Always ask to be sure this applies to your loan type.

Are there any types of cars I can't buy with my loan type?

Some lenders will place restrictions on the age of vehicles and even some restrictions on some makes and models of cars. If you're in doubt with the car you want to buy, take the time to ask your lender some questions about whether it will be suitable for them to use as security for your loan.

Do I need a deposit for a car loan?

Some lenders will allow you to borrow the entire purchase price of your car. This will depend heavily on the strength of your financial situation and your credit history.

How do I make payments to my loan?

Your repayments can be made automatically via direct debit on a weekly, fortnightly or monthly basis with most lenders. This is where an amount of money is debited from your regular transaction account each month to cover your payment. Some lenders will also allow you to make your payments via BPAY if you prefer.

Can I make extra repayments off my car loan?

This will depend entirely on the lender you choose and the type of car loan you want. Some loans will charge you an early repayment fee for making extra repayments. Others won't. It's always a good idea to check whether this fee will apply to your loan before you proceed with the application.

How is the interest calculated on my loan?

Interest is calculated on your outstanding loan balance on a daily basis and charged to your account monthly in arrears.

Can I buy a car privately or do I have to buy through a dealer?

You are able to buy your car through a private seller if you wish. You will need to provide details about the car to the lender, such as registration number and vehicle identification number (VIN) for the loan to proceed.

Does applying for a car loan affect my credit report?

Any enquiries you make for any form of credit will be entered onto your credit report as an enquiry with that lender. If your application is declined and you end up submitting another application elsewhere, your report will show two enquiries.

I've got bad credit. Can I still apply for a car loan?

Many banks may decline a car loan application from a borrower with a bad credit history. However, there are some lenders out there willing to let you borrow money even with bad credit. You may want to discuss your application with a car finance specialist before you proceed. This will help you to locate the appropriate lenders to help with your situation and improve your chances of getting your loan approved. These loans will generally be secured against the car in the case of default.

Should I choose a balloon payment at the end of my car loan?

A balloon payment is a residual amount of money that needs to be repaid at the end of the loan term. This type of loan lets you reduce your monthly repayments throughout the term of the loan and then you need to pay off the lump sum amount still owing at the end. You might choose to sell the car to pay off the lump sum amount due or trade it in on another vehicle and refinance that residual amount into your new loan.

Will I still owe the bank money if they repossess my car?

In the event that you stop making your car loan repayments, the lender may choose to repossess your car. They will sell it in an attempt to get some of their money back along with covering any repossession fees they were charged. If the sale price of the car doesn't fully cover those costs or pay off your outstanding loan amount entirely, then you may still need to repay the bank for the remaining amounts owed.

Remember that a car loan can be a large financial commitment - so remember to do your due diligence and compare a wide range of options before applying

Latitude Personal Loan (Secured)

Can be used for whatever purpose: renovating, buying a car, booking a holiday. Funds can be in your account in as little as 24 hours.

CUA Fixed Rate Car Loan

A competitive car loan that offers flexible repayment options and no account keeping fees.

IMB New Car Loan

This fixed rate new car loans up to 2 years old features no early repayment penalties

RACV Car Loans

Enjoy this fixed rate new car loan offer from RACV. No ongoing fees.

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24 Responses to Car Loan Finder™ – Compare car loans and motor finance

  1. Default Gravatar
    Jeanjeanie | October 11, 2016

    Hi There

    I want to do a 5 year car loan for $68000 but want to make a lump sum at the end of $34000 do you have a calculator for this option?

  2. Default Gravatar
    Azeema | December 10, 2015

    I am an Australian citizen living and working in Dubai. Can you please advise if any of the banks offer auto loans to non residents Australians as i would like to invest in a car as my son will be moving to Sydney and i will be visiting Sydney more often.

    • Staff
      Elizabeth | December 11, 2015

      Hi Azeema,

      I am currently unaware of any banks or Australian lenders who will lend to you unless you are currently residing in Australia. This is because if you default on any payments it’s difficult for them to pursue you to cover the costs of the loan. You may want to consider a lender in Dubai that will allow you to buy your car in Sydney.

      I’m sorry I couldn’t be of more assistance.

      Thanks,

      Elizabeth

  3. Default Gravatar
    Eduardo | October 26, 2015

    Visa student can apply for a loan car ?

    • Staff
      Elizabeth | October 26, 2015

      Hi Eduardo,

      Thanks for your question.

      There are a few lenders who might consider you for a loan – you can compare your options on this page.

      I hope this has helped.

      Thanks,

      Elizabeth

  4. Default Gravatar
    manjula | October 11, 2015

    hey there i would like to apply for $6000.for a car loan

    • Staff
      Elizabeth | October 12, 2015

      Hi Manjula,

      Thanks for your question.

      You can compare lenders using the table above, and once you’ve found a loan you want to apply for you can click ‘Go to Site’ to submit your application.

      I hope this has helped.

      Thanks,

      Elizabeth

  5. Default Gravatar
    Tammy | August 31, 2015

    Just want to know if you lend money to 417 visa holders migrating to 457? It’s for a vehicle loan?

    • Staff
      Elizabeth | August 31, 2015

      Hi Tammy,

      You’ve come through to finder.com.au, as a financial comparison service we don’t actually offer the loans ourselves. You can take a look at this page to see the lenders who consider temporary residents for a loan.

      I hope this has helped.

      Thanks,

      Elizabeth

  6. Default Gravatar
    desley | May 5, 2015

    Is there anywhere I can get a car loan of $15.000 on a disabled pension with no bankruptcy, bad debts etc

    • Staff
      Elizabeth | May 5, 2015

      Hi Desley,

      Thanks for your question.

      Some lenders will consider your disability support as a form of income, but you can compare loans available for those receiving the pension on this page. The page also details community financial assistance schemes that you might want to look into.

      I hope this has helped.

      Thanks,

      Elizabeth

  7. Default Gravatar
    aleisha | April 14, 2015

    Hi I am wanting to get a car loan but am on centrelink and finding it hard to get around with my childen can u help me??

    • Staff
      Elizabeth | April 15, 2015

      Hi Aleisha,

      Thanks for your question.

      You can take a look at loans available for people on Centrelink on this page, and you might also want to have a read of this page where it takes you through some no-interest loan scheme options.

      I hope this will help.

      Thanks,

      Elizabeth

  8. Default Gravatar
    anne | March 10, 2015

    Looking to get a cheap second hand car to tie me over for 6 months , I am self employed & need a low doc loan around $4,000 max , is there any low doc credit card companies I could use ? I plan to pay it back quickly . Or maybe a low doc car loan company that would lend a short term loan , any help would be appreciated
    thanks anne

    • Staff
      Shirley | March 11, 2015

      Hi Anne,

      Thanks for your question.

      Unfortunately at this current point we don’t compare low doc personal loans, though you find a list of alternatives on this page.

      You may want to approach one of the bigger banks, such as the big four or international banks (like HSBC and Citibank) to discuss your eligibility or options.

      Cheers,
      Shirley

  9. Default Gravatar
    Megan | March 5, 2015

    I’m not really interested in a short term loan as it’s not enough to get me a decent car. I need to be able to get myself a reliable car that I know won’t break down on me. I know I can pay a long term loan for a decent amount

    • Staff
      Shirley | March 6, 2015

      Hi Megan,

      Thanks for your question.

      Please note that finder.com.au is an online comparison service and is not a product issuer. If you would like to discuss your eligibility or options, please get in touch with a lender featured on this page.

      Cheers,
      Shirley

  10. Default Gravatar
    Megan | March 4, 2015

    Hi, I really want to update my car before it dies on me and I’m stuck. I’m a single mum with 2 children (1 special needs) I receive centerlink FTB A&B and also a carers pension. I know I can make repayments as a few years ago I got a car via U own rentals and payed back $185 per week for 18 months without missing a payment. I did it this way because at the time it was my only choice because I have a bad credit rating due to a bad time in a relationship. I need to find a lender who will give me a chance to prove myself

    • Staff
      Shirley | March 5, 2015

      Hi Megan,

      Thanks for your question.

      You may be interested in our comparison of short terms loans for a range of lenders who maybe able to assist.

      Please ensure that you read the requirements before applying.

      Cheers,
      Shirley

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