Best Car Loans in Australia for 2026

To help more Australians find the best car loan our money experts analyse 64 car loans regularly using a data-driven methodology. This takes into account both car loan fees and interest rates: the lower the better. Just because these loans have been picked as the best products at the time of review, 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: IMB New Car Loan
• Best car loan for used cars: OurMoneyMarket Used Car Loan ($5,000-$100,000)
• Best car loan for electric vehicles: RACV Green Car Loan

Finder Score	Interest Rate (p.a.)	Comp. Rate (p.a.)	Application Fee	Monthly Fee
Best car loan for new cars
9 Excellent IMB New Car Loan Fixed1 - 7 Years $2,000 - $125,000	9 Excellent	Interest Rate (p.a.) 6.24%	Comp. Rate (p.a.) 6.59%	Application Fee $250	Monthly Fee $0	Go to siteView details Compare product selection Compare	loading	Why we like it This loan has no monthly account-keeping fees, giving you more clarity around what you're repaying each month. Pros & cons Pros Early repayments without penalty $0 service fee to pay every month Low interest rate Cons $2,000 minimum loan amount for this account Application fee of $250 Late fees may be charged
Best car loan for used cars
9.4 Excellent OurMoneyMarket Used Car Loan ($5,000-$100,000) Fixed1 - 7 Years $5,000 - $100,000	9.4 Excellent	Interest Rate (p.a.) 5.95% to 18.99%	Comp. Rate (p.a.) 5.95% to 21.78%	Application Fee $0 min.	Monthly Fee $0	Go to siteView details Compare product selection Compare	loading	Why we like it This fixed rate loan has a very low interest rate and there are no ongoing fees. There is no age limit on the car you can buy. Pros & cons Pros Flexible repayments No monthly service fee; 0% establishment fee for exceptional credit No early repayment or exit fees No vehicle age limit Cons Late payment fee of $35
Best car loan for electric vehicles
8.1 Great RACV Green Car Loan Fixed1 - 7 Years $5,000 - $100,000	8.1 Great	Interest Rate (p.a.) 6.49% to 17.69%	Comp. Rate (p.a.) 7.08% to 17.79%	Application Fee $499	Monthly Fee $0	View details Compare product selection Compare	loading	Why we like it This loan has a very low fixed interest rate and is for new electric vehicles. There are no ongoing fees.

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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. These are the most recent car loan results we have, from the 2025 awards.

Lender	Overall satisfaction	Trustworthy/reliable
	★★★★★ 4.3/5	93%
	★★★★★ 4.1/5	86%
	★★★★★ 4.1/5	87%
	★★★★★ 4.1/5	82%
	★★★★★ 3.9/5	76%

What does a good car loan look like right now?

• The lowest standard car loan interest rate in Finder's database right now is the Harmoney fixed rate car loan with an interest rate of 5.76%.
• The lowest interest rate for a green car loan is 5.89% with RACV.
• The average Australian with a car loan is holding a balance of $12,761.
• With the lowest standard rate and no fees, the monthly repayments for a 5 year loan would be $246.

*Interest rates and fees from Finder's database. Average loan balance from Finder's Consumer Sentiment Tracker.

Market update by Rebecca Pike – Money expert

How do I find the best car loan for me?

1. Look for 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

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.

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%."

Graham Cooke

Head of Consumer Research

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 regularly.

Different types of lenders have different benefits and drawbacks too.

Banks

Online lenders

Car finance brokers

Dealership finance

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.

Frequently asked questions

• How much are the repayments on a $30,000 car loan?

  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.

• Which bank is best for car finance?

  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.

• Which bank offers the best car loan interest rate?

  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.

• What is the current interest rate for car loans in Australia?

  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%.

Written by

Richard Whitten

Senior Money Editor

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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. See full bio

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Richard has written 755 Finder guides across topics including:

• Home loans
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