Car loans interest rate comparison

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

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Richard Whitten

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Updated regularly
Product Finder Score Interest Rate (p.a.) Comp. Rate (p.a.) Application Fee Monthly Fee Monthly Repayment
Finder Score
9.4 Excellent
Interest Rate (p.a.)
5.99%
Comp. Rate (p.a.)
6.34%
Application Fee
$274.78
Monthly Fee
$0
Monthly Repayment
$616.71
Go to siteMore info
Finder Score
9 Excellent
Interest Rate (p.a.)
5.9%
to 18%
Comp. Rate (p.a.)
6.33%
to 23%
Application Fee
$395
Monthly Fee
$0
Monthly Repayment
$619.53
Go to siteMore info
Finder Score
8.3 Great
Interest Rate (p.a.)
5.99%
to 7.14%
Comp. Rate (p.a.)
7.12%
to 8.27%
Application Fee
$400
Monthly Fee
$8
Monthly Repayment
$628.52
Go to siteMore info
OurMoneyMarket New Car Loan ($5,000-$100,000)
OurMoneyMarket logo
Finder Score
8.6 Great
Interest Rate (p.a.)
6.57%
to 18.99%
Comp. Rate (p.a.)
7.19%
to 21.78%
Application Fee
1.5% - 6%
Monthly Fee
$0
Monthly Repayment
$622.82
Go to siteMore info
Great Southern Bank Fixed Rate Car Loan
Great Southern Bank logo
Finder Score
9.1 Excellent
Interest Rate (p.a.)
6.29%
to 12.99%
Comp. Rate (p.a.)
6.43%
to 13.14%
Application Fee
$100
Monthly Fee
$0
Monthly Repayment
$614.13
Go to siteMore info
RACV New Car Loans
RACV logo
Finder Score
8.4 Great
Interest Rate (p.a.)
6.99%
to 17.99%
Comp. Rate (p.a.)
7.69%
to 18.77%
Application Fee
$499
Monthly Fee
$0
Monthly Repayment
$632.86
Go to siteMore info
OurMoneyMarket Used Car Loan ($5,000-$100,000)
OurMoneyMarket logo
Finder Score
8.6 Great
Interest Rate (p.a.)
6.57%
to 18.99%
Comp. Rate (p.a.)
7.19%
to 21.78%
Application Fee
1.5% - 6%
Monthly Fee
$0
Monthly Repayment
$622.82
Go to siteMore info
Stratton Finance Used Car Loan
Stratton Finance logo
Finder Score
8.8 Great
Interest Rate (p.a.)
6.59%
to 18%
Comp. Rate (p.a.)
7.91%
to 23%
Application Fee
$395
Monthly Fee
$0
Monthly Repayment
$625.92
Go to siteMore info
loans.com.au - Variable Rate Used Car < 5 years
loans.com.au logo
Finder Score
8 Great
Interest Rate (p.a.)
7.14%
to 7.14%
Comp. Rate (p.a.)
8.27%
to 8.41%
Application Fee
$400
Monthly Fee
$8
Monthly Repayment
$639.2
Go to siteMore info
RACV Used Car Loans
RACV logo
Finder Score
8.1 Great
Interest Rate (p.a.)
8.19%
to 17.99%
Comp. Rate (p.a.)
8.9%
to 18.77%
Application Fee
$499
Monthly Fee
$0
Monthly Repayment
$644.16
Go to siteMore info
loans.com.au - Variable Rate Used Car < 3 years
loans.com.au logo
Finder Score
7.9 Great
Interest Rate (p.a.)
7.14%
to 7.14%
Comp. Rate (p.a.)
8.27%
to 8.41%
Application Fee
$400
Monthly Fee
$8
Monthly Repayment
$639.2
Go to siteMore info
loans.com.au - Green Car Loan Variable
loans.com.au logo
Finder Score
8.4 Great
Interest Rate (p.a.)
5.84%
Comp. Rate (p.a.)
6.97%
Application Fee
$400
Monthly Fee
$8
Monthly Repayment
$627.13
Go to siteMore info
OurMoneyMarket Secured Personal Loan ($5,000-$75,000)
OurMoneyMarket logo
Finder Score
8.6 Great
Interest Rate (p.a.)
6.57%
to 18.99%
Comp. Rate (p.a.)
7.19%
to 21.78%
Application Fee
1.5% - 6%
Monthly Fee
$0
Monthly Repayment
$622.82
Go to siteMore info
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Car loans market update for May 2025

Although there’s no slowing of the car finance market, there’s some consideration that there might be a swing towards buying cars.

Car trader CARS24 has reported a significant uptick in the number of Australians buying used cars, with a 20% year-on-year increase.

Notably, there’s been a bigger increase in the number of people buying more expensive pre-owned cars. Vehicles valued over $40,000 saw a 51% increase in demand year-on-year, compared to a 16% uplift for those valued below.

This shows that people are being savvier with their decisions in turning to used car dealerships, even while wanting higher-end vehicles.

For anyone seeking finance for their cars there are some low rates on offer.

The lowest unsecured car loan on the market is 4.50% with Rapid Finance. But this product also comes with one of the highest maximum interest rates, so it’s important to have a good idea of where your credit score sits before you apply.

The lowest secured car loan interest rate is 3.69% through Driva’s Motorbike Loan.

The average minimum unsecured car loan interest rate is 8.47% and the average minimum secured car loan interest rate is 7.87%.

Rebecca Pike
Market update by Rebecca Pike – Finder money senior writer

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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 car loan 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 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.

Compare car loan interest rates in under a minute

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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 car loan 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 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 car loan 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 Money Writer

Car loans guides and resources

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 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 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.

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.

The lowdown on Finder Score

Wondering how we work out Finder Score? We look at 200+ car loan products across 100+ lenders and we compare them against each other to get our simple score out of 10. Metrics like interest rates, fees and features are weighted and scaled to come up with a Finder Score for each product.

The Finder Score methodology is designed by our Insights team. Commercial partners carry no weight and all products are reviewed objectively.

Digging deeper into the Finder car loans score

  • 9+ Excellent - These products offer competitive rates, fees and features, making them the most attractive.
  • 7+ Great - These products tend to offer slightly higher rates or fees, but are still competitive.
  • 5+ Satisfactory - Typically offering above average rates or fees and possibly lacking in a few key features.
  • Less than 5 – Basic - The least competitive in terms of both cost and features.
Richard Whitten's headshot
Money Editor

Richard Whitten is Finder’s Money Editor, with over seven years of experience in home loans, property and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Graduate Certificate in Communications from Deakin University. See full bio

Richard's expertise
Richard has written 608 Finder guides across topics including:
  • Home loans
  • Property
  • Personal finance
  • Money-saving tips

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