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Best Car Loans*

Need to finance your vehicle? How to find the best car loan* for you.

Buying a car brings with it a number of decisions, but one of the most important ones is your finance. If you've decided to get a car loan it's important to find the most competitive and suitable product for you. That is, you want to find the best car loan.

This guide will take you through all of the features and costs you need to consider when sorting through your car loan options so you can be confident when making your decision.

What's the best car loan for me?

The best car loan is the one that helps you get the car you want for repayments that are affordable for you and offers features that meet your needs. To find this loan, you need to ensure the loan is competitive in terms of its interest rate and fees and that you are able to use it to buy the car you want (lenders have restrictions on age and value of the vehicle). You then need to look at other features, such as repayment flexibility, to ensure these all meet your needs. This is all detailed in the guide below.

Latitude Motor Vehicle Loan

Latitude Motor Vehicle Loan

From

6.99 % p.a.

fixed rate

From

8.10 % p.a.

comparison rate

  • Competitive low rate
  • Up to 7 years to repay
  • New or used vehicles accepted
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100% confidential application

Latitude Motor Vehicle Loan

A competitive fixed rate loan available for new and used vehicles.

  • Interest rate from: 6.99% p.a.
  • Comparison rate: 8.10% p.a.
  • Interest rate type: Fixed
  • Application fee: $295
  • Minimum loan amount: $5,000
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Compare some of the best car loans

Rates last updated August 16th, 2018
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Monthly Service Fee Application Fee Product Description Monthly Repayment
Latitude Motor Vehicle Loan
From 6.99% (fixed)
8.1%
$5,000
1 to 7 years
$10
$295
Apply online to finance a new or used motor vehicle and receive a response in 90 seconds. You will receive a competitive tailored rate of between 6.99% p.a. to 14.99% p.a. based on your risk profile.
Loans.com.au - New Car Loan
From 5.44% (fixed)
5.99%
$5,000
3 to 5 years
$0
$400
This car loan is for new cars and offers a low fixed rate and no ongoing fees.
IMB New Car Loan
5.99% (fixed)
6.34%
$2,000
1 to 7 years
$0
$250
Borrow up to $75,000 for a new car up to two years old. Competitive 5.99% p.a. rate available to all approved applicants.
Stratton Finance New Car Loan
From 5.29% (fixed)
6.56%
$18,000
1 to 7 years
$8.90
$459.20
Apply for up to $100,000 and have up to 7 year(s) to repay. You can use cash or trade in a vehicle to use as a deposit.
Beyond Bank Low Rate Car Loan
From 5.69% (fixed)
5.97%
$25,000
1 to 7 years
$0
$175
Take advantage of a competitive rate, pre-approval and no early repayment fees when you finance a car under two years old.
RACV New Car Loans
From 5.99% (fixed)
6.55%
$15,000
1 to 7 years
$0
$399
A competitive rate car loan from RACV with no monthly fees and 5-hour loan approval.
Bank Australia Car Loan
6.45% (fixed)
6.66%
$1,000
1 to 7 years
$0
$150
A competitive rate and the ability to offset your car’s carbon emissions for the loan term.
Sydney CU Special Variable Car Loan
5.95% (variable)
5.95%
$10,000
1 to 7 years
$0
$0
Benefit from a flexible, variable rate to finance a car up to 3 years old with SCU. Note: Approval fee waived until 30th September 2018.
MyState Secured Personal Loan
From 7.99% (variable)
8.96%
$10,000
1 to 10 years
$10
$200
Apply for a loan up to $75,000 and benefit from loan terms up to 10 years. Your choice between secured or unsecured.
IMB Secured Personal Loan
6.89% (fixed)
7.24%
$2,000
1 to 5 years
$0
$250
All approved applicants can access this competitive rate and use the loan to finance a range of purposes. Loan amounts up to $60,000 available.
St.George Secured Personal Loan - Fixed Rate
From 8.49% (fixed)
9.6%
$3,000
1 to 5 years
$12
$195
Use your car as security and benefit from a competitive interest rate.

Compare up to 4 providers

* The offers compared on this page are chosen from a range of products finder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing products.

Compare the best car loans*

  • Beyond Bank Low Rate Car Loan "Special Offer": 5.97% p.a. comparison rate. A limited time offer - get a car loan with a 5.69% p.a. variable rate.
  • RACQ New Car Loan: 6.72% p.a. comparison rate. A car loan suitable for new vehicle purchases with no monthly administration fees.
  • imb New Car Loan: 6.34% p.a. comparison rate. A new car loan with no monthly service fees and no early repayment.
  • bcu Car Loan: 6.82% p.a. comparison rate. A flexible car loan with redraw facility and fee-free early payout.

Quick guide to how car loans work

Car loans work much in the same way as other personal loans, except that the vehicle you're purchasing is used to guarantee the loan. This is why car loans come with much more competitive rates – generally between 5-10% p.a. If you don't want to attach your vehicle to the loan, you can consider an unsecured personal loan to finance your car purchase. These loans come with a rate of between 7-20% p.a.

A car loan can be offered as a dealership finance loan or as a standard car loan from a bank, credit union or standalone lender. You can generally borrow between $1,000 and $100,000 with a car loan and loan terms can extend up to 7 years. The type of loan you are eligible for will depend on whether the car is new or used, how much the car is worth as well as your own credit history and financial situation.

How do you find the best car loan?

Here are a few things to keep in mind when you're comparing your car loan options above – this will help you find the best car loans for your needs and settle for one.

  • How much does the loan cost? You need to consider both the interest rate and fees when asking this question. When looking at the interest rate, compare similar loans to each other to see if the standalone rate is competitive. Then, look at the comparison rate to see if the loan is still affordable and comparable when the fees are brought into the equation (the comparison rate is the interest rate + fees).
  • Are the repayments flexible? See if you will be able to repay your car loan early without penalty or if you will be able to make additional repayments without being charged a fee.
  • What are your loan terms? Car loan terms are generally your choice of between 1 and 7 years. The length of time you take out a loan will affect your loan repayments and therefore the loan affordability, so make sure you consider this.
  • Is your car eligible? Can you actually finance the car you want with this loan? Some lenders have restrictions on the age of the vehicle or the type of vehicle, so ensure you'll be able to purchase the car you want before you apply.
  • How much can you borrow? The loan amount you are offered by the lender will depend on a couple of factors. For most lenders your credit history and financial situation will be a determining factor, and for a secured car loan the amount will also depend on the cost of the car. Car loans are generally for between $1,000 and $100,000.
  • What is the type of loan?
    Take note of the specific type of car loan that you are looking at. This can be a new or used car loan, low-interest car loan, bad credit car loans or pre-approved car loans. The category type your loan falls under will help you compare it to other similar loans.

Five tips to get the best car loan

  • Consider a newer vehicle. New car loans come with lower interest rates than used car loans because the lender is taking on less of a risk. Most new car loans don't require you to purchase a brand new car; you can usually secure a vehicle less than two years old for this loan.
  • Quotes without credit enquiries. While credit enquiries are not always a bad thing to have listed on your file, too many enquiries can have a negative impact on your credit score. If you're submitting an enquiry for a car loan rate estimate make sure no hard credit checks are listed on your file. If a credit check is required, don't enquire with too many separate lenders.
  • Detail all of your assets and finances when applying. Some lenders offer lower interest rates if you have a strong net position (assets minus liabilities). So even if you are applying for a secured car loan, listing your other assets may give you access to a better rate.
  • Leave a down payment. If a lender sees you don't need to borrow 100% of the purchase price of the vehicle you may be eligible for a lower rate.
  • Compare your options before you apply. This will show you which lender has the lowest rate car loans available. If you don't want to sort through your options yourself you can consider using the services of a car finance broker to help you find the best car loan options for your specific situation. Click on the "speak to a broker" tab above the table.

Have you weighed up the benefits and drawbacks of car loans?

  • Depending on the lender, your car loan might have various restrictions on what you can use the loan amount for
  • If the car loan is a variable rate option then you may find your rate change over the life of the loan, making it difficult to budget for your repayments

Found the best car loan for your situation? Here's what you'll need to apply

The type of information you will need to provide usually depends on the lender and the type of loan you have chosen. You will generally need to provide

  • Proof of your identity with a passport or driver's licence
  • Details of your finances including credit, debt and assets
  • Proof of your income
  • Details about the car (if you've found it) including make, model and year

For a secured loan you will also have to provide details about the vehicle including the Vehicle Identification Number, the dealership. Check with your lender before you submit your application.

Ready to apply?

To apply for a car loan, simply use the comparison table at the top of this page to compare your options. Once you have found the best car loan that meets your needs you can follow the secure link to the lender's online application form. The eligibility criteria differ between lenders, but you will most likely need to be over the age of 18 and be a permanent Australian resident to qualify.

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Car Loan Offers

Important Information*
IMB New Car Loan

Borrow up to $75,000 for a new car up to two years old. Competitive 5.99% p.a. rate available to all approved applicants.

Loans.com.au - New Car Loan

This car loan is for new cars and offers a low fixed rate and no ongoing fees.

Latitude Motor Vehicle Loan

Apply online to finance a new or used motor vehicle and receive a response in 90 seconds. You will receive a competitive tailored rate of between 6.99% p.a. to 14.99% p.a. based on your risk profile.

Stratton Finance New Car Loan

Apply for up to $100,000 and have up to 7 year(s) to repay. You can use cash or trade in a vehicle to use as a deposit.

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