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Best Car Loans Australia

We analysed 64 offers and 2,304 data points to find 4 of the best car loans in Australia right now.

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:

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.
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Best car loan for fast application

loans.com.au - New - Variable Rate Special

loans.com.au logo

6.24% to 7.74%
interest rate
7.36% to 8.85%
comparison rate
6.24% to 7.74%
interest rate
7.36% to 8.85%
comparison rate

What we like about loans.com.au's New - Variable Rate Special car loan

  • You can apply in as little as 2 minutes and get approved within 24 hours.
  • This loan has a competitive variable interest rate.

What else to consider

  • This loan has an application fee and a monthly fee.
  • Your new vehicle is used as security for the loan.
  • The speed of your loan application and approval depends on your suitability as a borrower and other factors.
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Best car loan for used cars

OurMoneyMarket Used Car Loan - No Vehicle Age Limit

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 Used Car Loan - No Vehicle Age Limit

  • This fixed rate loan has a very low interest rate.
  • There are no ongoing fees with this loan.
  • There is no age limit on the car you can buy.

What else to consider

  • This loan has an application fee based on a percentage of the loan size.
  • Your vehicle is used as security for the loan.
  • Your actual interest rate depends on your credit score and other factors.
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Best car loan for electric vehicles

RACV Green Car Loan

RACV logo

5.79% to 15.49%
interest rate
6.49% to 16.26%
comparison rate
5.79% to 15.49%
interest rate
6.49% to 16.26%
comparison rate

What we like about RACV's Green Car Loan

  • This loan has a very low fixed interest rate.
  • This loan is for new electric vehicles.
  • There are no ongoing fees.

What else to consider

  • This loan does have a fairly large application fee.
  • Your new electric vehicle is used as security for the loan.
  • Your actual interest rate depends on your credit score and other factors.
Read Review

Need more options? Compare more of the best car loan rates

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1 - 9 of 78
Name Interest Rate (p.a.) Comp. Rate (p.a.) Application Fee Monthly Fee Monthly Repayment
loans.com.au - New - Variable Rate Special
Variable3 - 7 Years $5,000 - $150,000
Interest Rate (p.a.)
6.24%
to 7.74%
Comp. Rate (p.a.)
7.36%
to 8.85%
Application Fee
$400
Monthly Fee
$8
Monthly Repayment
$630.83
Go to siteMore Info
OurMoneyMarket New Car Loan
Fixed1 - 7 Years $2,001 - $75,000
Interest Rate (p.a.)
6.57%
to 18.99%
Comp. Rate (p.a.)
7.19%
to 21.78%
Application Fee
$250
min.
Monthly Fee
$0
Monthly Repayment
$622.82
Go to siteMore Info
Verified Lending Used Car Loan
Fixed1 - 7 Years $10,000 - $200,000
Interest Rate (p.a.)
7.1%
to 18.99%
Comp. Rate (p.a.)
8.06%
to 22.99%
Application Fee
$395
Monthly Fee
$0
Monthly Repayment
$630.67
Go to siteMore Info
Simplify New Car Loan
Fixed1 - 7 Years $10,000 - $300,000
Interest Rate (p.a.)
6.19%
to 18%
Comp. Rate (p.a.)
6.6%
to 23%
Application Fee
$395
Monthly Fee
$0
Monthly Repayment
$622.21
Go to siteMore Info
NRMA New Car Loan
Fixed1 - 7 Years $5,000 - $130,000
Interest Rate (p.a.)
7.29%
to 16.99%
Comp. Rate (p.a.)
8%
to 17.77%
Application Fee
$499
Monthly Fee
$0
Monthly Repayment
$635.67
Go to siteMore Info
Note: Take out a loan for an eligible electric vehicle and receive a 1.5% discount on your personalised interest rate (interest rates start from 5.79% p.a. and comparison rates from 6.49% p.a.)
OurMoneyMarket Used Car Loan - No Vehicle Age Limit
Fixed1 - 7 Years $2,001 - $75,000
Interest Rate (p.a.)
6.57%
to 18.99%
Comp. Rate (p.a.)
7.19%
to 21.78%
Application Fee
$250
min.
Monthly Fee
$0
Monthly Repayment
$622.82
Go to siteMore Info
Simplify Used Car Loan
Fixed1 - 7 Years $10,000 - $300,000
Interest Rate (p.a.)
6.19%
to 18%
Comp. Rate (p.a.)
6.6%
to 23%
Application Fee
$395
Monthly Fee
$0
Monthly Repayment
$622.21
Go to siteMore Info
NRMA Used Car Loan
Fixed1 - 7 Years $5,000 - $130,000
Interest Rate (p.a.)
8.49%
to 16.99%
Comp. Rate (p.a.)
9.21%
to 17.77%
Application Fee
$499
Monthly Fee
$0
Monthly Repayment
$647.01
Go to siteMore Info
You'll receive a fixed rate from 8.49% 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.
loans.com.au - Variable Rate Used Car < 5 years
Variable3 - 7 Years $5,000 - $150,000
Interest Rate (p.a.)
7.74%
to 7.74%
Comp. Rate (p.a.)
8.85%
to 8.99%
Application Fee
$400
Monthly Fee
$8
Monthly Repayment
$644.82
Go to siteMore Info
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Showing 9 of 9 results

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?

If the car loans we've picked aren't what you're looking for, you can find a better car loan yourself with 6 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 12.00% rate. It depends on both the loan and your own circumstances.

Example: Breaking down car loan costs

LoanAB
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

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. 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.

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 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 borrowedLoan TermInterest paidDifference
$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.

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 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%.
Richard Whitten
Market update by Graham Cooke – Money expert

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.

BankInterest rate fromComparison rate from
ANZ Fixed Rate Personal Loan7.49% p.a.8.18% p.a.
CommBank Secured Car Loan6.99% p.a.8.4% p.a.
NAB Fixed Rate Personal Loan for a Car6.99% p.a.7.91% p.a.
Westpac Car Loan6.49% p.a.7.69% p.a.

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