{"menuItems":[{"label":"Best car loan for new cars","anchorName":"#best-car-loan-for-new-cars"},{"label":"Best fast application car loan","anchorName":"#best-fast-application-car-loan"},{"label":"Best car loan for used cars","anchorName":"#best-car-loan-for-used-cars"},{"label":"Best car loan for electric vehicles","anchorName":"#best-car-loan-for-electric-vehicles"},{"label":"Need more options? Compare more of the best car loan rates","anchorName":"#need-more-options-compare-more-of-the-best-car-loan-rates"},{"label":"How to find the best car loan in 5 quick steps","anchorName":"#how-to-find-the-best-car-loan-in-5-quick-steps"},{"label":"Want to get the best car loan rate? Improve your credit score","anchorName":"#want-to-get-the-best-car-loan-rate-improve-your-credit-score"},{"label":"How do I find the best car loan for me?","anchorName":"#how-do-i-find-the-best-car-loan-for-me"},{"label":"Who offers the best car loans in Australia?","anchorName":"#who-offers-the-best-car-loans-in-australia"}]}
To help more Australians find the best car loan our money experts analyse 30+ loans every month using a data-driven methodology. This takes into account both car loan fees and interest rates: the lower the better.
To ensure our picks are useful for more borrowers we've created 4 categories:
All our car loan picks come from lenders which have a commercial partnership with Finder. While these are some of the market's most competitive rates there may be more suitable loans on the market for you.
Best car loan for new cars
OurMoneyMarket New Car Loan
6.57% to 18.99%
interest rate
7.19% to 21.78%
comparison rate
6.57% to 18.99%
interest rate
7.19% to 21.78%
comparison rate
What we like about OurMoneyMarket's New Car Loan
This loan has a very low interest rate.
There are no ongoing fees with this loan.
This fixed rate loan won't change during the life of the loan.
What else to consider
This loan has an application fee based on a percentage of the loan size.
Your new vehicle is used as security for the loan.
Your actual interest rate depends on your credit score and other factors.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
If the car loans we've picked aren't what you're looking for, you can find a better car loan yourself with these simple steps.
Find a car loan with a low interest rate. The best car loan for the majority of borrowers is one with a lower interest rate.
Look for a car loan with low fees. Most lenders charge an application fee plus a monthly service fee. Factor in these fees when finding the best car loan.
Compare the right loan type for your car. If you're buying an electric vehicle you can probably get a better deal with a green car loan. If you're buying an older used car you can't get a new car loan.
Choose your loan term carefully. You can choose loan terms between 1 and 7 years. Shorter terms mean you can pay the loan off faster, but your monthly repayments are bigger. Longer loan terms are cheaper month to month, but you pay more interest over the long run.
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.
What does a good car loan rate look like right now?
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 excellent credit who does their research can get a rate below 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%.
Want to get the best car loan rate? Improve your credit score
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.
How do I find the best car loan for me?
Find a better car loan in 5 simple steps.
1. Compare loans and find 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 4.00% rate. It depends on both the loan and your own circumstances. That lower rate makes a huge difference in your repayments, saving you hundreds of dollars a month and thousands over the life of the loan.
Example: Breaking down car loan costs
Loan
A
B
Loan amount
$25,000
$25,000
Interest rate
4.23%
6.50%
Application fee
$300
$600
Monthly fees
$0
$8
Loan term
4 years
4 years
Monthly repayments (including fees)
$567.05
$600.87
Total loan costs (including fees)
$27,519
$29,442
Savings
$1,923 cheaper
N/A
Over 4 years, Loan A would save you almost $2,000 in interest charges and fees.
2. Find the best car loan for your vehicle type
The lowest rate won't help you if you can't use the loan to buy the car you want. Secured car loans use your car as the loan's security. This means you can get a lower interest rate.
These 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. You'll have a higher rate, but the loan will be more flexible and let you buy a used car more easily.
3. Look for a loan that allows flexible repayments
The longer it takes to pay off a car loan the more interest you pay. A flexible loan that lets you make extra repayments means you can get out of debt faster. If you can afford it, you could even pay off the loan in one go.
But not every car loan lets you do this. And some charge fees for making extra repayments.
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. So 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
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.
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) and a Tier 1 Generic Knowledge certification (RG 146).
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We are committed to our readers and stands by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please note that the information published on our site should not be construed as personal advice and does not consider your personal needs and circumstances. While our site will provide you with factual information and general advice to help you make better decisions, it isn't a substitute for professional advice. You should consider whether the products or services featured on our site are appropriate for your needs. If you're unsure about anything, seek professional advice before you apply for any product or commit to any plan and read any disclosure documents (such as any Target Market Determination (TMD) and/or Product Disclosure Statement (PDS)) issued by the provider before making a decision.
Providing or obtaining an estimated insurance quote through us does not guarantee you can get the insurance. Acceptance by insurance companies is based on things like occupation, health and lifestyle. By providing you with the ability to apply for a credit card or loan, we are not guaranteeing that your application will be approved. Your application for credit products is subject to the Provider's terms and conditions as well as their application and lending criteria.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.