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.
To ensure our picks are useful for more borrowers we've created 4 categories:
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 new cars
What we like about IMB New Car Loan
This loan has no monthly account-keeping fees, giving you more clarity around what you're repaying each month.
This product has an Excellent Finder Score.
You can make additional repayments, giving you flexibility to repay your loan sooner.
What else to consider
This loan is designed for new cars only, so it may not be for you if you're buying a used car.
Although there are no ongoing fees, there's a fairly high application fee
This loan is only available with a fixed interest rate.
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.
We currently don't have that product, but here are others to consider:
How we picked these
Finder Score for car loans
To make comparing car loans even easier we came up with the Finder Score. Interest rates, fees and features across 200+ car loan products and 100+ lenders are all weighted and scaled to produce a score out of 10. The higher the score, the more competitive the product.
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%."
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.
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
This depends on the interest rate and the fees that apply, along with the loan term. For example, with a 5% interest rate over 5 years, repayments would be about $566 per month. Use Finder's loan calculator to get a personalised estimate.
A good car loan in Australia is available from banks, non-banks and credit unions. You will generally pay more in interest rates for an unsecured car loan than a secured loan, as the secured loan is less risky for the lender. They know they can repossess the secured asset (your car) if you stop making payments, and they offer a lower interest rate as a reflection of this reduced risk. The best bank for you will depend on your specific situation.
A great car loan interest rate in Australia is generally below 8%, with anything under 6% considered best in market in the current climate. Interest rates change regularly, and you will generally pay more for an unsecured car loan than a secured loan, as the secured loan is less risky for the lender. As rates change daily, the best loan on the market changes regularly.
Current car loan rates generally range between 6% and 16%, depending on your risk profile, repayment history, and the size and type of the loan. Interest rates may go as high as 19%.
Richard Whitten is Finder’s Senior Money Editor, with over eight years of experience in home loans, property, credit cards 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 started his career in education and textbook publishing in South Korea. He 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 Bachelor of Education from the University of Sydney and a Graduate Certificate in Communications from Deakin University.
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I’m From Papua New Guinea would be possible to apply for monthly payment for car?
Finder
RichardNovember 18, 2024Finder
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.
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.
If you are unhappy with your current car loan, refinancing it could be the right choice for you. Most people refinance their car loan to get a lower interest rate, get more flexibility in their car loan or get more additional features. Read our guide to see if it's right for you.
If you're looking to a buy a car you can consider a secured car loan to help finance your vehicle purchase. The loan is guaranteed so you can enjoy a lower interest rate – compare your options and apply today.
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.
Whether you're upgrading your current car or looking for a new vehicle for your first car purchase, a new car loan can help you finance your set of wheels. Find out everything you need to know about new car loans to help you find the right loan for you.
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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.