Top pick for
New Car
New Car
Best Car Loans in Australia for 2026
The best car loans handpicked by our experts to save you $$s and help you drive away happy.
Top pick for
Used Car
Used Car
5.95%
to 18.99%
to 18.99%
interest rate
5.95%
to 21.78%
to 21.78%
comparison rate
To help more Australians find the best car loan our money experts analyse 64 car loans every month using a data-driven methodology. This takes into account both car loan fees and interest rates: the lower the better. Just because these loans have been picked as the best products for one month, it does not mean this is the best product for you. Rates are usually personalised based on borrower profile and so costs may change for your own circumstances.
- Best car loan for used cars: OurMoneyMarket Used Car Loan ($5,000-$100,000)
- Best car loan for electric vehicles: RACV Green Car Loan
Need a car loan?
Take our easy quiz and find a better deal.
Top 5 car loan providers for customer satisfaction in 2025
The Finder Customer Satisfaction Awards ask Australians which brands and products they trust and love the most. We asked hundreds of Australians to rate their providers based on customer service, features and benefits, ease of application, fees and interest rates, and trustworthiness and reliability.
| Lender | Overall satisfaction | Trustworthy/reliable |
|---|---|---|
 | ★★★★★ 4.3/5 | 93% |
 | ★★★★★ 4.1/5 | 86% |
 | ★★★★★ 4.1/5 | 87% |
 | ★★★★★ 4.1/5 | 82% |
 | ★★★★★ 3.9/5 | 76% |
Looking for a cost-effective alternative to a regular car loan?
Thinking about a new car loan? Consider novated leasing with Smart and save on tax and GST
Smart offers a salary packaging solution enabling you to drive away with a new vehicle and save on tax, too.
With a Smart novated lease, you'll get:
- Your choice of vehicle, supported by Smart's complimentary car buying service
- Easy payment management with costs coming directly from your salary
- Service, maintenance and fuel costs bundled into one payment
- No Fringe Benefits Tax when you choose an electric vehicle
What does a good car loan look like right now?
- The lowest standard car loan interest rate in Finder's database right now is the Harmoney fixed rate car loan with an interest rate of 5.76%.
- The lowest interest rate for a green car loan is 5.09% with RACV.
- The average Australian with a car loan is holding a balance of $12,761.
- With the lowest standard rate and no fees, the monthly repayments for a 5 year loan would be $246.
*Interest rates and fees from Finder's database. Average loan balance from Finder's Consumer Sentiment Tracker.
Market update by Rebecca Pike – Money expert
How do I find the best car loan for me?
1. Look for a low interest rate
Car loan interest rates vary quite a lot. You could get a loan with an 8.00% interest rate or one with a 12.00% rate. It depends on both the loan and your own circumstances.
Example: Breaking down car loan costs
| Loan | A | B |
|---|---|---|
Loan amount | $25,000 | $25,000 |
Interest rate | 7.0% | 12.0% |
Loan term | 4 years | 4 years |
Monthly repayments | $599 | $659 |
Total loan cost (including interest) | $28,736 | $31,601 |
Savings | $2,865 cheaper | N/A |
Over 4 years, Loan A would save you well over $2,000 in interest charges.
2. Find the best car loan for your vehicle type
Make sure the car you're buying is eligible for the loan. Secured car loans are ideal for new cars. Lenders won't take an older car as security because it won't hold its value.
If you are buying an older car the best car loan for you is probably an unsecured car loan.
If you're buying an electric vehicle you can probably get a better deal with a green car loan.
3. Look for a loan that allows flexible repayments
The faster you pay off the loan the less interest you'll pay. Some car loans won't let you make extra repayments or they'll charge a fee to do so. But if you can, you might be able to pay off the loan early.
4. Avoid getting hit with lots of ongoing fees
The fees that come with your loan can make a big difference to how much you end up paying. Car loans can have several fees, including monthly service fees and one-off application fees.
Fees don't have to be a deal-breaker, but be sure to factor them in when comparing costs.
5. Choose the right loan term
Car loan terms are often flexible and can last for 1 to 7 years. A shorter loan term means larger monthly repayments. But you pay less interest because you get out of debt faster.
A longer loan term means lower monthly repayments but more interest in the long term. Finding the best car loan term is about striking a balance between affordable monthly repayments and a reasonable repayment term that doesn't cost you too much in interest.
| Amount borrowed | Loan Term | Interest paid | Difference |
|---|---|---|---|
$30,000 | 3 years | $2,369 | |
$30,000 | 5 years | $3,968 | +$1,599 |
$30,000 | 7 years | $5,617 | +$3,248 |
6. Watch out for hidden surprises
If your car loan has a fixed rate then there will be a break fee if you try to pay it off early. Some car loans look good upfront but have a balloon payment at the end that can be very expensive.
How your credit score affects your interest rate
The car loan rate you'll actually get depends on your individual credit score and financial circumstances.
This means the best car loans go to borrowers with high credit scores and minimal debts. Before applying for a car loan it's a good idea to check your credit score.
You can get a better car loan rate by improving your credit score before you apply.
"While interest rates have risen for home loans, credit cards and savings accounts in the last 2 years, car loans remain remarkably competitive. A borrower with an Excellent credit score who does their research can get a rate around 7%. But if you don't shop around and your credit score is below average, you could end up with a car loan rate above 20%."
Who offers the best car loans in Australia?
The best car loan can look different for every borrower. And lenders change their rates and fees all the time. That's why we review our best car loan picks every month.
Different types of lenders have different benefits and drawbacks too.
Banks
- It's easy to apply for a loan if you're already a bank customer.
- Manage your accounts in one place.
- Flexible loan options and reasonably competitive rates.
- Many banks don't offer specialised car loan products.
- Not the lowest rates on the market.
- Harder to negotiate your rate.
Online lenders
- Often have lower rates than banks
- Fast online application process
- Lack of face-to-face, personalised service
Car finance brokers
- Access competitive rates from multiple lenders.
- Expert guidance with the whole buying and application process
- Specialist lenders for classic cars, imports or bad credit history
- Broker charges may apply, and brokers charge fees in different ways.
- Some brokers are better than others and have access to more lenders.
Dealership finance
- Convenient as the dealer arranges finance when you purchase the car.
- Promotional interest rates.
- Potential for negotiation with the dealer.
- Dealer may be pushy and is also trying to sell you the car.
- There may be substantial residual and balloon payments.
Which bank has the best car loan rate?
Westpac and the Commonwealth Bank currently have the best car loan rates among the Big Four banks.
| Bank | Interest rate from | Comparison rate from |
|---|---|---|
| ANZ Fixed Rate Personal Loan | 7.49% p.a. | 8.18% p.a. |
| CommBank Secured Car Loan | 6.29% p.a. | 7.71% p.a. |
| NAB Fixed Rate Personal Loan for a Car | 6.49% p.a. | 8.05% p.a. |
| Westpac Car Loan | 6.49% p.a. | 7.9% p.a. |
Frequently asked questions
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I’m From Papua New Guinea would be possible to apply for monthly payment for car?
Hello Loli,
Your eligibility for a car loan depends on your visa type too. If you have a working or residency visa that is valid for over 12 months you will have an easier time getting approved. But it depends on the lender.