Car loans interest rate comparison

Compare over 100 car loan interest rates and fees quicker than you can find your car keys.

Compare these car loan brands & more

{"visibility":"visibilityTable","ctaLabel":"Calculate","tableCode":"AUFCL_COMPARISON_V2_TABLE","nicheCode":"AUFCL","fields":[{"name":"LOAN_AMOUNT","value":"20000","options":"","label":"Loan amount","suffix":"$","useSuffixAsPrefix":true,"useDropDownOption":false,"tooltip":""},{"name":"PERIOD","value":"3","options":"","label":"Loan term","suffix":"years","useSuffixAsPrefix":true,"useDropDownOption":false,"tooltip":""}]}
1 - 10 of 97
Name Interest Rate (p.a.) Comp. Rate (p.a.) Application Fee Monthly Fee Monthly Repayment
Simplify New Car Loan
Simplify Finance logo
Fixed1 - 7 Years $10,000 - $300,000
Interest Rate (p.a.)
6.19%
to 18%
Comp. Rate (p.a.)
6.6%
to 23%
Application Fee
$395
Monthly Fee
$0
Monthly Repayment
$622.21
Go to siteMore Info
loans.com.au - New/Demo - Variable Rate
loans.com.au logo
Variable3 - 7 Years $5,000 - $150,000
Interest Rate (p.a.)
6.24%
to 7.39%
Comp. Rate (p.a.)
7.36%
to 8.5%
Application Fee
$400
Monthly Fee
$8
Monthly Repayment
$630.83
Go to siteMore Info
IMB New Car Loan
IMB logo
Fixed1 - 7 Years $2,000 - $125,000
Interest Rate (p.a.)
6.24%
Comp. Rate (p.a.)
6.59%
Application Fee
$274.78
Monthly Fee
$0
Monthly Repayment
$619.01
Go to siteMore Info
You'll receive a fixed rate of 6.24% 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.
OurMoneyMarket New Car Loan ($5,000-$100,000)
OurMoneyMarket logo
Fixed1 - 7 Years $5,000 - $100,000
Interest Rate (p.a.)
6.57%
to 18.99%
Comp. Rate (p.a.)
7.19%
to 21.78%
Application Fee
$250
min.
Monthly Fee
$0
Monthly Repayment
$622.82
Go to siteMore Info
Stratton Finance New Car Loan
Stratton Finance logo
Fixed1 - 7 Years $10,000 - $300,000
Interest Rate (p.a.)
6.52%
to 18%
Comp. Rate (p.a.)
6.95%
to 23%
Application Fee
$395
Monthly Fee
$0
Monthly Repayment
$625.27
Go to siteMore Info
You'll receive a fixed rate from 6.52% p.a. depending on the lender you are approved with.
Apply for up to $300,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.
RACV New Car Loans
RACV logo
Fixed1 - 7 Years $5,000 - $150,000
Interest Rate (p.a.)
7.29%
to 16.99%
Comp. Rate (p.a.)
8%
to 17.77%
Application Fee
$499
Monthly Fee
$0
Monthly Repayment
$635.67
Go to siteMore Info
You'll receive a fixed rate from 7.29% 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.
OurMoneyMarket Used Car Loan ($5,000-$100,000)
OurMoneyMarket logo
Fixed1 - 7 Years $5,000 - $100,000
Interest Rate (p.a.)
6.57%
to 18.99%
Comp. Rate (p.a.)
7.19%
to 21.78%
Application Fee
$250
min.
Monthly Fee
$0
Monthly Repayment
$622.82
Go to siteMore Info
Simplify Used Car Loan
Simplify Finance logo
Fixed1 - 7 Years $10,000 - $300,000
Interest Rate (p.a.)
6.19%
to 18%
Comp. Rate (p.a.)
6.6%
to 23%
Application Fee
$395
Monthly Fee
$0
Monthly Repayment
$622.21
Go to siteMore Info
Stratton Finance Used Car Loan
Stratton Finance logo
Fixed1 - 7 Years $10,000 - $300,000
Interest Rate (p.a.)
6.52%
to 18%
Comp. Rate (p.a.)
6.95%
to 23%
Application Fee
$395
Monthly Fee
$0
Monthly Repayment
$625.27
Go to siteMore Info
You'll receive a fixed rate loan from 6.52% p.a. with a comparison rate of 6.95% p.a.
A used car loan of up to $300,000 with quick approval times and balloon payment options.
loans.com.au - Fixed Rate Used Car < 3 years
loans.com.au logo
Fixed3 - 7 Years $5,000 - $150,000
Interest Rate (p.a.)
7.59%
to 8.79%
Comp. Rate (p.a.)
8.7%
to 10.04%
Application Fee
$400
Monthly Fee
$8
Monthly Repayment
$643.41
Go to siteMore Info
loading
Showing 10 of 12 results

Why compare Car Loans with Finder?

No spam calls

You won't receive any callbacks from Finder if you compare with us.

Rates obsessed

Rates from banks and digi lenders in one place. Everyone but your parents, really.

100+ lenders verified day and night

Whether you're browsing or at the dealer - our rates are up-to-date.

Thousands of people compare car loans with Finder every month

4.69 average rating from 805 reviews

As seen on

Compare car loan rates in under a minute

Compare Now

6 things to look for when doing a car loan comparison

  • Interest rate. The lower the interest rate, the lower your repayments will be.
  • Loan term. How quickly do you need to pay off the loan? Longer term loans will have lower repayments but they’ll take longer to pay off and you’ll pay more interest.
  • Minimum repayments. Ask what your minimum repayment amounts will be and check that this is affordable on your income and budget.
  • Repayment structure. Check how often you need to make repayments, if you can make extra repayments and repay your loan early without penalty, or if you need to make a balloon payment.
  • Fees. Some loans come with monthly account fees or administration fees, establishment fees or early repayment fees.
  • Car insurance. Some lenders may insist the vehicle is properly insured at all times until the loan is fully repaid. If this is the case, compare your car insurance options.

What impacts the car loan comparison rate?

A comparison rate is the 'real' rate of interest when things like extra fees are considered. A big disparity between the interest rate and the comparison rate could mean that the loan comes with large fees which will increaese your repayments.

A comparison rate is good to be aware of but it's not always best to rely on it. That's because a comparison rate is typically based on a specific loan amount and loan term. For a car loan it's based on a loan of $30,000 over a 5 year term. The 'real' rate of interest may be different for you depending on the loan you need.

What are the steps in getting a car loan?

These steps can depend on whether you’re applying for finance online, in a branch or at a dealership. They may also depend on whether you have chosen the car itself, as well as the type of car and finance you’re getting.

Generally, the following steps will apply:

  1. You apply for finance
    Once you've compared car loans and found the right one for you, you need to submit your application. You can do this in person at the bank or dealership or do it online. Unsecured car loans will only require your personal and financial details, but secured car loans will also need information about the car.
  2. Credit officer reviews your application
    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, where you will be told how much you are likely to be eligible for so you can go car shopping knowing how much you can spend.
  3. Ensure you've provided the right documentation
    The lender will probably need additional documentation such as identification, income verification or bank statements to support your application.
  4. Sign loan documents
    This is your agreement with the bank to repay the amount you're borrowing over a specified loan term at an agreed interest rate.
  5. Purchase your car using the funds
    This can happen in 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 for it yourself. If you're purchasing from a dealership, the lender will usually pay the dealer directly. If you applied for an unsecured loan you will need to transfer the funds yourself.

Online car loans: pros and cons

Pros

  • Quick process. Most lenders will come to a decision on the same day you apply and, in many cases, you can get funds disbursed in as little as one day.
  • Bargaining power. Since just about every individual needs a car, competition among lenders is fierce. This results in better bargaining power for consumers.
  • Convenience. Applying for a car loan online is simply much more convenient than having to apply in-person at a dealership or bank.

Cons

  • Applying too many times.Lenders may deny your application if they see you’ve been applying for too many loans within a short period of time. Doing this also lowers your credit score.
  • Short pre-approval times. Keep in mind that any pre-approval you get from a lender will expire in a very short amount of time.
  • Credit history. Red flags in your credit history, such as missed or late payments, will hurt your chances of being approved.

What type of car are you looking for?

The type and age of the car you want will influence which loans you may be eligible for. If you're after a new, used or older car, find out how this can affect your options below.

New cars

You may be able to get more competitive interest rates if you're buying a new car as they're deemed lower risk. The vehicle is likely to retain most of its value for the majority of the loan term and, because it's used as collateral security, it's in the lender's best interests if the car has a chance of selling for a good price.

Lenders may consider any car under 2 years old to still be a new car, but be sure to check the terms and conditions. It may also be dependent on the number of kilometres displayed on the odometer.

New car loans


Used cars

You can still get a secured loan if you want to buy a used car, but watch out for restrictions on the age of the car. Interest rates tend to be a little higher, which means if you're looking to purchase a used car it's even more important to do a car loan comparison.

Used car loans


Older cars

If the car you want to purchase is more than 5 years old, you may find it harder to use it as security as its value may not be retained. Instead, the lender may suggest you apply for an unsecured personal loan. If the car is not used as security, the lender can't repossess the vehicle if you stop making your repayments, so this type of loan is considered riskier and interest rates can be higher.

Unsecured car loans

Compare car loan types

Choosing between these car loan types is mostly a personal decision, but some loan types will better fit with certain cars.

Variable rate car loan vs fixed rate car loan

A variable rate car loan will mean the interest rate you pay on your loan amount will change according to the market. If interest rates go up, it's likely your repayments will also go up to cover the additional interest charges. If rates go down, your repayments should also be reduced. A variable loan can be quite flexible, but it can also be harder to budget for repayments if they begin to vary from month to month.

A fixed rate car loan lets you lock in the interest rate for the duration of the loan. As the interest rate doesn't change over the loan term, your repayments will also stay exactly the same. This makes it much easier to budget for repayments each month. However, the fixed rates available from most lenders tend to be higher than the variable rates available.

Secured car loan vs unsecured car loan

With a secured loan, the vehicle you buy is used as collateral for the loan. The lender has the right to repossess your vehicle if you default on your loan. It will then sell the vehicle to recoup the costs of the loan.

As this type of loan is less of a risk to the lender, the rates for secured loans will usually be lower than those on an unsecured loan. This type of loan is similar to a secured personal loan; however, its intended use is for the purchase of a vehicle.

With unsecured loans, the lender doesn't use any of your assets as security for the loan. This means it has 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.

Rebecca Pike's headshot
Our expert says

"Comparing car loans can be overwhelming, particularly when interest rates vary so much. Most car loan providers offer personalised rates so even though you might see a really low rate on offer, it doesn’t mean you’ll get it. This is why it’s a good idea to make sure your credit score is as good as it can be to try and get those lower rates. You should then always get quotes from different providers: you might end up with a lower interest rate from a lender which has a higher minimum rate in the table than some others!"

Senior writer

When the cheapest interest rate isn't the cheapest loan

When most people go hunting for the cheapest loan, they immediately look for a low interest rate car loan and believe they're getting the best car loan. 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.

Car loan comparison: 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 5 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 car loan rate:

Lender ALender B
Loan amount$25,000$25,000
Car loan rates8% 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, despite the initial up-front cost.

Make sure you consider and compare all costs before you apply for a loan and use a car loan repayment 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 compare car loans here on Finder, you'll get an idea of what interest rates are available from a range of lenders, giving you plenty of ammunition when negotiating with your own lender.

  • Negotiate on price

    If you're keen to stay with your bank or credit union for your car finance, take your interest rate research with you and ask if you can get a discount on 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 rates. This is because the dealership often receives its loans at discounted rates, and the margin between what the dealer pays to the lender and what you pay to the dealer 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: you may save up to 2% off advertised rates.

  • Ask for a package deal

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

Ways to reduce your monthly car loan repayments

  • Lower the interest rate

    By reducing your interest rate even a little, you should end up paying less on your monthly payments. This is one of the primary reasons why you should always take the time to check comparison sites before you apply for any type of finance.

  • Borrow less

    Borrowing $5,000 more over a 5-year loan term adds up to $1,000 extra per year you have to pay back, plus interest. This adds up to approximately $90 per month out of your pocket. You can reduce the amount you need to borrow by offering a trade-in of your old vehicle or even paying a slightly larger deposit out of your savings.

  • Consider a residual balloon payment

    If you borrow $30,000 and 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, plus interest on the entire $30,000. You'll need to cover this cost at the end of the term or refinance your car 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, so you could end up paying far more in interest over the loan term.

Car loan comparison: Loan terms for a $25,000 vehicle

Option 1Option 2
Loan amount$25,000$25,000
Car loan rate8.25% p.a.8.25% p.a.
Loan term5 years7 years
Monthly repayment$509.91$392.78
Total repayment amount$30,594.38$32,993.22

In this example, Option 1 has a higher monthly repayment, but you only end up paying $5,594.38 in interest over the term of that loan. By comparison, Option 2 allows you to pay $117.13 less per month on your monthly repayments. This will definitely make budgeting easier throughout the loan term, but you end up paying $7,993.22 in interest over the loan term. This is $2,398.84 more in interest charges you end up paying overall.

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
  • Passport
  • Birth certificate
  • Medicare card may be required as additional documentation
Income and employment
  • 3 recent payslips
  • 2 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
Vehicle details
  • Make, model, year and colour
  • Identification number (VIN) or chassis number
  • Engine number
  • Registration number
  • Purchase price

*The products compared on this page are chosen from a range of offers available to us and are not representative of all the products available in the market. There is no perfect order or perfect ranking system for the products we list on our Site, so we provide you with the functionality to self-select, re-order and compare products. The initial display order is influenced by a range of factors including conversion rates, product costs and commercial arrangements, so please don't interpret the listing order as an endorsement or recommendation from us. We're happy to provide you with the tools you need to make better decisions, but we'd like you to make your own decisions and compare and assess products based on your own preferences, circumstances and needs.

Why you can trust Finder's car loan experts

helpAddicted to details. We know taking out a car loan is something you'll be driving around with for a while. That's why we put hours into research for this guide (and still do at least once a month).
freeRates obsessed. Lenders (just like cars) come in all shapes and sizes, that's why we don't just track the big banks, but all the digi folk too. Pretty much everyone but your parents to be honest.
independentReady to hit the road when you are. Lending rates verified from 115+ products day and night. Whether you're just browsing car sales, or just finished your demo in the dealership - we got you.

Questions you may have about car loans

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

Richard Whitten's headshot
Editor

Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio

Richard's expertise
Richard has written 558 Finder guides across topics including:
  • Home loans
  • Property
  • Personal finance
  • Money-saving tips

Read more on this topic

  • How to check a car’s service history

    Checking a car's service history can help you avoid major issues when you buy a used car. Here's how it works.

  • Car loans for classic cars

    Want to buy a classic car but don't have the ready money? There are still financing options available for classic vehicles. Find out what loans you have to choose one and which one will work best for you.

  • Rent an Uber car in the Gold Coast

    There's a way you can drive with Uber without using your own car – find out how.

  • Rent a car for Uber in Canberra

    Find out how you could rent a car to drive with Uber in Canberra

  • Tesla Superchargers Map: Where you can charge in Australia

    Find out the extent of Australia's Tesla Supercharger network with our complete map of every charging station.

  • Cheap Car Loans Australia

    When you're shopping around for a new car, you surely want the cheapest car loan possible.

  • Best car loans – 4 expert picks

    The best car loan isn't necessarily the one with the lowest rate. Learn how to spot the best car loans and compare 15+ car loan products with Finder.

  • Used car loans comparison

    You can still get a car loan if you want to finance a used car. Find out how you can get a used car loan and see what rates are available for the used car you want. Learn how to best compare lenders and apply for your loan today.

  • Fixed Rate Car Loans

    Know what your repayments will be for the duration of your loan term with a fixed rate car loan. As your loan is secured you can find competitive rates and lock them in at the beginning, keeping them low while you make ongoing repayments. Find out if the loan is right for you.

  • Variable rate car loans

    A variable rate car loan can give you a way to finance your new car purchase while letting you take advantage of any favourable interest rates should they become available. Compare your options today and see what's available.

Go to site