Best Car Loans Australia

Finding the best car loan rates could save you hundreds (or maybe thousands) of dollars!

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Using your new car as security, a car loan gives you access to a lower rate. By comparing the options that are out there and finding the best car loan for your financial circumstances, you could potentially save thousands over the life of your loan. That's a lot of reasons to use the comparison below.

Finding the best car loan

There's no single loan that's best for everyone as all our needs are different - and what's best for you might not be best for someone else.

Compare some of the best car loans

Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Application Fee Monthly Service Fee Monthly Repayment - New and Dealer Used Car Loan
3.99% (fixed)
3 to 5 years
You'll receive a fixed rate of 3.99% p.a. based on your risk profile
Finance a new car and benefit from features such as fast approval, no ongoing fees and an optional balloon payment.

⭐Special Offer: Settle the loan before 30 June 2022 and enter the draw to win a $1,000 fuel gift voucher. T&Cs apply.
Wisr Secured Car Loan
From 4.74% (fixed)
3 to 7 years
$195 for refinance and dealer sale ($245 for private sale)
You'll receive a personalised interest rate from 4.74% p.a. to 16.01% p.a. based on your risk profile
A flexible car loan from $5,000 - $64,000 with personalised rates and rewards for strong credit customers.

⭐Special Offer: Wisr's standard establishment fee $605 will be reduced to $195 for applications submitted through Finder. T&Cs apply.
Credit Concierge Car Loan
From 3.69% (fixed)
1 to 7 years
You'll receive a fixed rate of 3.69% p.a. with a comparison rate of 4.23% p.a.
Get access to over 20 providers to fund a new or used car.
IMB New Car Loan
4.88% (fixed)
1 to 7 years
$275.12 ($250 Application fee + $25.12 PPSR fee)
You'll receive a fixed rate of 4.88% 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.
Driva Car Loan
From 3.99% (fixed)
1 to 7 years
$295 (Varies by lender, starting from $295)
You'll receive a fixed rate from 3.99% p.a.
Borrow up to $250,000 with loan terms from 1 to 7 years. Get access to a range of lenders.

⭐Exclusive Offer: Apply and settle with Driva by February 7, 2022 to earn a $250 fuel voucher.

RACV New Car Loans
From 4.99% (fixed)
1 to 7 years
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.
Stratton Finance New Car Loan
From 3.99% (fixed)
3 to 7 years
You'll receive a fixed rate from 3.99% p.a. depending on the lender you are approved with
Apply for up to $250,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.
NRMA New Car Loan
From 4.99% (fixed)
1 to 7 years
You'll receive a fixed rate from 4.99% p.a.
Purchase a new or used car up to 3 years old and benefit from a fixed rate and no monthly fees. Pre-approval available within 5 business hours.
Great Southern Bank Fixed Rate Car Loan
6.79% (fixed)
1 to 7 years
$265 ($175 Establishment Fee + $90 Security Administration Fee)
You'll receive a fixed rate of 6.79% p.a.
A secured loan with a high maximum borrowing amount up to $100,000. Redraw facility and no monthly fees.
NAB Personal Loan Unsecured Fixed
From 6.99% (fixed)
1 to 7 years
You'll receive a fixed rate between 6.99% p.a. and 18.99% p.a. ( 7.91% p.a. to 19.83% p.a. comparison rate) based on your risk profile
Borrow from $5,000 to $55,000, with 1 to 7 year loan terms available. This loan comes with no fees for extra repayments and no early exit fees.
Symple Loans Personal Loan
From 5.75% (variable)
1 to 7 years
from 0% to 5% of the loan amount
You'll receive a personalised interest rate from 5.75% p.a. to 25.99% p.a. based on your risk profile
Borrow up to $50,000 to pay for what you need.
SocietyOne Car Loan
From 5.45% (fixed)
2 to 7 years
from $0 to $595
You'll receive a fixed rate between 5.45% p.a. and 21.49% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.
Latitude New and Used Car Loan
From 5.99% (fixed)
1 to 7 years
You'll receive a fixed rate of 5.99% p.a.
Apply for a loan from $5,000 to finance a new or used car. Flexible repayments and options to finance a classic car.
OurMoneyMarket Car Loan
From 5.35% (fixed)
1 to 7 years
You'll receive a fixed interest rate from 5.35% p.a. to 14.99% p.a. based on your risk profile.
Borrow between $2,001 and $75,000 to finance a new or used car up to 7 years.
NRMA Used Car Loan
From 6.24% (fixed)
1 to 7 years
You'll receive a fixed rate from 6.24% p.a.
Finance a used car with NRMA and benefit from a fixed rate term and no monthly fees. Pre-approval available within 5 business hours.

Compare up to 4 providers

In this guide, you'll learn:

  • How to find the best car loans
  • What to look for in a car loan
  • How to understand the car loan application process, the lingo and costs
  • Expert money-saving tips for your new car purchase

What is a car loan?

A lender will advance you up to 100% of the funds needed to buy a new car. Car loans are a specialised personal loan. Secured car loans use the vehicle you purchase as security against the finance. The upside of using your vehicle as collateral is lenders can offer you a more competitive interest rate. In short, it'll save you hundreds, if not thousands of dollars, over the loan term.

Alternatively, unsecured car loans have fewer conditions attached to how you spend the money and which vehicle you can buy. Car loans are available from finance brokers, credit unions, banks and car dealerships (through in-house or partner financing).

Lenders offer new car loans between $2,000 right up $250,000. You can choose to repay a loan over one to seven years. However, the amount you can borrow is dependent on your eligibility and takes into account things like your credit history and current financial standing.

What's the best car loan for me?

Here's a secret to finding your best car loan. The perfect loan would:

  • Allow you to buy your desired car (some loans are subject to vehicle age and value restrictions)
  • Have comfortably affordable monthly repayments (you're not overstretching yourself)
  • Have a competitive interest rate - the lower the interest, the bigger the saving you'll make over the loan agreement
  • Carry minimal on-going costs, like monthly service fees and application charges

If you can tick all those boxes, on paper, you're on the way to finding the best car loan for your situation.

You might also decide that you want a loan with a redraw option. If you've repaid more than you need to and are ahead on your car loan, some lenders will let you borrow the extra back.

Best car loans if you are self-employed

If you're self-employed, you might want to consider low documentation car loans (low doc car loans).

Why take out a car loan?

Most commonly, you don't have the money to pay for the car outright.

In reality, there are dozens of reasons you may choose to take out a car loan. You might prefer to break the cost of a new car down into manageable monthly amounts. Or, you might have noticed there's a surplus in your budget each month, which could be put towards on replacing your aging car. Then again, maybe your mechanic has told you it is no longer cost-effective to keep repairing your current car, as it requires major work to fix.

Taking out a car loan means you can get the exact vehicle you want, without having to spend years stashing away money to build up your savings. Speaking of savings, they can stay where they are in the bank, untouched.

It also means you could go for a higher specification model than you would otherwise be able to afford if you were purchasing a car outright.

How to pick the best car loan deals

The car loans comparison table above shows several vehicle finance examples. How do you weigh each one up to pick the best car loan that fits your circumstances? Ask yourself these questions:

  • How much does the car loan actually cost? Rather than looking at just the fixed interest rate, you may find the comparison rate helpful. This number includes the interest rate, as well as the known loan fees and any application costs. It also factors in the frequency of repayments, in addition to the specified finance term and the loan's value. It doesn't include government charges. Comparison rates can help to give you a better overall understanding of the loan cost and to avoid being swayed by attractively low looking fixed interest rates. The monthly repayment column is also useful, as it's likely the number you can most relate to. These are example dollar amounts, so you can see how much each repayment will cost you and decide whether you can afford them.
  • Are the repayments flexible? It's always nice to have some flexibility in the repayments, especially if you find yourself in a position to pay back more, or even settle the loan in one fell swoop. Depending on your car loan lender, you could potentially save money doing this. However, there may be early repayment and admin fees to consider - in reality, it could potentially cost you more to pay off a car loan early. If you are in a position to pay the loan back early, finding a car loan that has little or no early repayment fees could be a feature to look for in the best car loan.
  • How long is the loan term? The quicker you can pay off a loan, the less time you'll spend paying interest. You can save thousands of dollars over a car finance agreement paying it off over a shorter period. Here's an example, with an interest rate of 5%:
    Amount borrowedLoan TermInterest paidDifference
    $30,0003 years$2,369
    $30,0005 years$3,968+$1,599
    $30,0007 years$5,617+$3,248

    The more you can afford to repay each month, the shorter the car loan term you can select, potentially saving you thousands of dollars in interest as a result.

    On the flip side, paying a loan over a longer period means lower repayments, because it spreads out the cost. You need to balance affordability with the cost of borrowing.

  • Is the vehicle you're buying eligible? Surely, you can buy any car you'd like with a loan, right? Unfortunately not. Remember, secured car loans use the vehicle as security, meaning, if you fail to make repayments, they can repossess the car. This offsets some of the risks in the eyes of the lender. That means they set specific age requirements most commonly. If you want to buy a used car, make sure that it meets the loan company's criteria. If you're buying a classic or vintage car, you'll want to check out classic car loans.
  • How much can you borrow? The amount of money a lender will make available to you is calculated primarily using your personal credit history and current financial situation. Depending on your circumstances and the car you're purchasing, you could be loaned anywhere between $1,000 up to $100,000.

How much does a car loan cost?

The true cost of a car loan depends on five things:

  • How much you're borrowing
  • How long the loan period is
  • The interest rate
  • Application fees and monthly charges
  • Possibly early repayment or exit fees

That's before you have to include things like registration (rego), car insurance, vehicle maintenance, fuel, roadside assistance, CTP, depreciation and servicing costs.

If you think you have found the best car loan for your situation, you can use our car loan monthly repayment calculator to see how much a loan will cost.

How to search for the best car loans in Australia

When it comes to making your money go as far as possible, every single cent counts. Here's how to rack up the savings on your new or used car purchase.

Choose the right loan term

As you may have seen above, there are thousands of dollars in savings to be found between a three year and a seven-year car loan. Make sure you pick the right loan period so that you hit that sweet spot between affordability and the amount of money you pay out in interest.

Shop around for car loans

Make sure you compare all of your loan options. If you can find a loan without any on-going service fees, you could save between $180 and $297, across a three year car loan. Likewise, if you find a loan without an application fee, you'll save from $200 to $700! If you add in savings from a loan with a low rate of interest, you could be looking at thousands of dollars in your pocket!

Opting for a secured car loan will give you a far more competitive interest rate versus an unsecured car loan.

Shop around for cars and haggle

Being savvy and shopping around can save you thousands of dollars on a new car. Shop around during the EOFY sales, when manufacturers slash considerable sums from the driveaway prices of new cars. If you can bag a runout model, again, you could net yourself substantial savings. You might also be able to grab online-only offers and that's before you begin negotiating with the dealer.

Be flexible

You might have your heart set on a specific model, but being open to dropping down the trim grades one or two notches could save you anywhere from a few thousand dollars to $70,000+, depending on the car manufacturer. Also, don't go mad on the options list, you can add ten grand (or more!) onto some cars with just a few ticks of a box.

Guard your credit history

Having credit enquiries on your file isn't necessarily bad, but having too many could impact on your credit score! Make sure no hard credit checks are taking place, as these can get listed on your credit report. Remember not to enquire with too many separate lenders.

Disclose your assets

If a lender sees you have a very robust financial position (liabilities subtracted from your assets), they may offer you a lower interest rate. So list your assets, even on secured car loans, to unlock those cheaper rates.

What are the pros and cons of buying a car with a loan?

There are many benefits to buying a car with a loan.


  • Break up the cost of purchasing a car, over a longer period
  • Receive conditional approval before going to purchase a car
  • Give you the power to bargain with a car dealer or seller
  • Repayments that fit within your budget
  • Enable you to buy a newer or more expensive car than you could otherwise afford with your savings
  • You can build out your credit file
  • Take advantage of the loans market competition


  • There may be restrictions and conditions on the age and type of vehicle you can buy
  • Variable-rate car loans may fluctuate, making budgeting less predictable
  • Cars out of warranty could suffer a catastrophic failure, leaving you with a broken vehicle and an outstanding loan
  • You have to pay for the loan, through interest
  • The car will depreciate (unless it's a classic car or in some rare cases)

Who offers car loans in Australia?

In Australia, the main money lenders offering car loans are:

  • Banks and financial institutions such as Beyond Bank, Heritage Bank, CUA or CommBank for example
  • Car finance brokers like Stratton Finance
  • Car dealerships (with in-house or partner financing)
  • Online lenders like
  • Motoring clubs like RACV

There are pros and cons to each lender type, so do your due diligence, researching which car loan provider is best suited to you and your unique circumstances.

Here are the general (not guaranteed, as each lender is different) pros and cons

Bank/Financial institution
  • You likely already have an account with a bank, which can speed up credit checks
  • Possibility to settle loan early with no penalties
  • Keep your financial dealings in one place
  • Deal directly with the loan provider
  • Term flexibility
  • Pre-approval possible
  • Redraw extra repayments made
  • Rigid lending criteria, with a detailed application process
  • Little chance of negotiation
Car finance brokers
  • Competitive rates (may get wholesale rates from banks)
  • Access to a variety of partner lenders
  • Specialist lenders for classic cars, imports or bad credit history
  • Convenient application process
  • Broker fees
Dealership finance
  • Most streamlined application process (at the dealers when buying a car)
  • Promotional interest rates
  • Fast approval (so the salesperson can move cars quickly)
  • Potential for negotiation
  • Easier to be impulsive
  • A dealer might have other products to cross-sell and sales targets to hit, prompting them to use high-pressure techniques
  • Substantial residual and balloon payments

I've found the best car loan for me. What paperwork will I need?

First, you need to be:

  • Aged 18 or older
  • Be employed or have a consistent income
  • Be an Australian citizen or a permanent resident

Next, you'll need to gather:

  • Proof of income
  • Proof of ID (a passport, driver's license, birth certificate or Medicare card)
  • Bank statements, three payment slips
  • Employer's information or two year's tax returns (for self-employed)
  • Details of assets (like cars and properties you own)
  • Details of other loans and credit cars
  • Vehicle specific details, including purchase price, colour, make, model, chassis number or the Vehicle Identification Number (VIN).

Then, follow the instructions on your car loan provider's website, or the application form.

Buying a car from a private seller

If you're buying a used car, or from a private seller, there are additional considerations you need to be aware of. Check out our used car buying tips.

Best Car loans summary

What's the TL;DR? Car loans are:

  • Often a type of secured personal loan
  • Generally between $2,000 and $100,000
  • Repaid according to a schedule: Weekly, fortnightly or monthly
  • Taken over one to seven-years
  • Available through banks, car loan brokers, online lenders or car dealers

More guides on Finder

Car Loan Offers

Important Information*
Logo for IMB New Car Loan
IMB New Car Loan

You'll receive a fixed rate of 4.88% 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.

Logo for Beyond Bank Low Rate Car Loan "Special Offer"
Beyond Bank Low Rate Car Loan "Special Offer"

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.

Logo for RACV New Car Loans
RACV New Car Loans

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.

Logo for NRMA New Car Loan
NRMA New Car Loan

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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