What is a good fixed interest rate for a car?

A good fixed interest rate for a car loan in Australia depends on your credit score, the loan term, whether the loan is secured and the lender. Rates vary widely between lenders and borrowers, so it is important to compare the current rates in the table on this page and offers from multiple lenders to find the best deal.

Is a fixed rate car loan better?

A fixed rate car loan can be better if you prefer predictable monthly payments and protection against interest rate rises. However, it may be less flexible than a variable rate loan, as fixed rates often come with penalties for early repayment.

Fixed rate car loans

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14 of 201 results

Finder Score	Interest Rate (p.a.)	Comp. Rate (p.a.)	Application Fee	Monthly Fee	Monthly Repayment
8.9 Great IMB New Car Loan	8.9 Great	Interest Rate (p.a.) 6.24%	Comp. Rate (p.a.) 6.59%	Application Fee $250	Monthly Fee $0	Monthly Repayment $618.25	Borrow up to $125,000, pay no account-keeping fees and repay with fixed repayments while having the ability to repay early.	Go to site View details Compare product selectionCompare	loading
8.5 Great Stratton Finance New Car Loan	8.5 Great	Interest Rate (p.a.) 6.2% to 18%	Comp. Rate (p.a.) 6.63% to 23%	Application Fee $395	Monthly Fee $0	Monthly Repayment $622.31	Your own personal car loan broker can help you borrow up to $300,000 for your new car by choosing from a range of finance options.	Go to site View details Compare product selectionCompare	loading
9.3 Excellent OurMoneyMarket New Car Loan ($5,000-$100,000)	9.3 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	Monthly Repayment $607.99	No monthly or early exit fees. Loan amounts range from $5,000 to $100,000. Eligibility: Applicants must have an Equifax credit score of 500 or above, an annual income of more than $25k, and must be an Australian citizen or permanent resident.	Go to site View details Compare product selectionCompare	loading
7.7 Great RACV New Car Loans	7.7 Great	Interest Rate (p.a.) 6.99% to 18.19%	Comp. Rate (p.a.) 7.57% to 18.29%	Application Fee $499	Monthly Fee $0	Monthly Repayment $632.86	Go to site View details Compare product selectionCompare	loading
8.5 Great Stratton Finance Used Car Loan	8.5 Great	Interest Rate (p.a.) 6.2% to 16.53%	Comp. Rate (p.a.) 6.63% to 17.85%	Application Fee $395	Monthly Fee $0	Monthly Repayment $622.31	Your own personal car loan broker can help you borrow up to $300,000 for your new car by choosing from a range of finance options.	Go to site View details Compare product selectionCompare	loading
9.3 Excellent OurMoneyMarket Used Car Loan ($5,000-$100,000)	9.3 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	Monthly Repayment $607.99	No monthly or early exit fees. Loan amounts range from $5,000 to $100,000. No vehicle age limit. Eligibility: Applicants must have an Equifax credit score of 500 or above, an annual income of more than $25k, and must be an Australian citizen or permanent resident.	Go to site View details Compare product selectionCompare	loading
7.3 Great RACV Used Car Loans	7.3 Great	Interest Rate (p.a.) 7.99% to 17.99%	Comp. Rate (p.a.) 8.57% to 18.47%	Application Fee $499	Monthly Fee $0	Monthly Repayment $642.27	Benefit from no ongoing fees, 5-hour approval and a 21-day satisfaction guarantee. Interest rate discounts for members.	Go to site View details Compare product selectionCompare	loading
7.2 Great loans.com.au - Fixed Rate Used Car Loan (6 to 7 years)	7.2 Great	Interest Rate (p.a.) 7.49% to 16.29%	Comp. Rate (p.a.) 8.62% to 17.41%	Application Fee $400	Monthly Fee $8	Monthly Repayment $642.47	Go to site View details Compare product selectionCompare	loading
8.5 Great ING Personal Loan	8.5 Great	Interest Rate (p.a.) 6.19% to 19.99%	Comp. Rate (p.a.) 7.03% to 20.78%	Application Fee $199	Monthly Fee $8	Monthly Repayment $624.23	Go to site View details Compare product selectionCompare	loading
7.4 Great NAB Unsecured Fixed Rate Personal Loan	7.4 Great	Interest Rate (p.a.) 7.5% to 22%	Comp. Rate (p.a.) 8.54% to 22.88%	Application Fee $0	Monthly Fee $15	Monthly Repayment $637.12	Go to site View details Compare product selectionCompare	loading
8.3 Great loans.com.au - Variable Rate Used Car < 5 years	8.3 Great	Interest Rate (p.a.) 5.94% to 16.89%	Comp. Rate (p.a.) 7.07% to 18.01%	Application Fee $400	Monthly Fee $8	Monthly Repayment $628.05	Go to site View details Compare product selectionCompare	loading
7.4 Great NAB Unsecured Variable Rate Personal Loan	7.4 Great	Interest Rate (p.a.) 7.5% to 22%	Comp. Rate (p.a.) 8.54% to 22.88%	Application Fee $0	Monthly Fee $15	Monthly Repayment $637.12	Go to site View details Compare product selectionCompare	loading
8.3 Great loans.com.au - New/Demo - Variable Rate	8.3 Great	Interest Rate (p.a.) 5.94% to 16.89%	Comp. Rate (p.a.) 7.07% to 18.01%	Application Fee $400	Monthly Fee $8	Monthly Repayment $628.05	Go to site View details Compare product selectionCompare	loading
8.2 Great loans.com.au - Variable Rate Used Car < 3 years	8.2 Great	Interest Rate (p.a.) 5.94% to 16.89%	Comp. Rate (p.a.) 7.07% to 18.01%	Application Fee $400	Monthly Fee $8	Monthly Repayment $628.05	Go to site View details Compare product selectionCompare	loading

Showing 14 of 14 results

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.

Read the full methodology

Fixed rate car loans lock in your interest rate for the entire loan term, providing predictable repayments and shielding you from potential rate increases.
While offering stability, fixed rate loans may come with restrictions on early repayments or additional payments.
These loans are ideal if you value consistent monthly payments and plan to keep the car for the full loan term, but may not be suitable if you anticipate paying off the loan early or refinancing.

How do fixed rate car loans work?

Fixed rate car loans come with an interest rate that will apply for the duration of the loan term. As this protects you from rate fluctuations, these loans come with more restrictions. You generally won't be able to make extra repayments or repay your loan early, or you'll have to pay a fee to do so.

Lenders normally require you to use your entire loan amount on the car purchase, although some allow you to borrow extra to cover additional vehicle costs, such as insurance. Once you're approved for the loan you make ongoing repayments throughout the loan term, which can be anywhere between one and seven years, until the loan is repaid in full.

What are the types of fixed rate car loans?

There are two types of fixed rate car loans, a secured fixed rate car loan and an unsecured fixed rate car loan.

Fixed Rate Secured Loan.
In secured fixed rate car loans, the lender will use your vehicle as a guarantee for the loan. These loans generally come with lower rates as they are a lower risk for the lender to take on.
Fixed Rate Unsecured Loan.
An unsecured fixed rate car loan means you do not have to use your vehicle to secure the loan. As the loan is more of a risk the rates are generally higher, but you have more freedom with how you use your loan amount.

Is a fixed or variable rate better for you?

A fixed-rate car loan could be a better fit if you:

Prefer certainty in your budget and want consistent repayments
These car loans generally come with lower rates, so you can lock in a competitive option
Don't plan to make extra repayments or pay the loan off early

A variable-rate car loan might suit you if:

You want the flexibility to make extra repayments without penalty
You're comfortable with the possibility of repayments going up or down
You're confident rates could drop and want to take advantage of that

How you can compare fixed rate car loans

When you plan to take a fixed rate car loan, it is important to compare the fee structure, interest rate and other features offered by different lenders in the market.

Compare interest rates.
Fixed interest rates differ from one lender to another and determine what your repayments will be. You are also given an option to reduce your interest payments by providing your asset as a security against the loan.
Compare comparison rates.
The comparison rate is basically a tool that helps you identify the actual cost of a loan. This rate is determined by taking into account the interest rate, other charges and fees related to a loan. However, it does not include government charges and contingent fees (for example, redraws fee or fees for early repayment). Comparison rates are calculated on the basis of a loan term, loan amount, repayment frequency (whether fortnightly, monthly or weekly), interest rate and other charges and fees.
Compare lenders.
Choosing the right lender is very critical when you plan to take a fixed rate car loan. Different brands offer different features, such as extended loan terms, minimum loan amount, insurance covers, flexible repayment schedule, early repayment options, lower interest and comparison rate in order to attract borrowers. If you're loyal to a particular lender, be mindful that they may not have the best deal for your particular situation.
Compare the fees.
There are different fees and charges such as early termination fees, monthly administration fees and establishment fees. Fees generally vary from lender to lender and it is only wise if you choose the one who offers minimal fees in order to reduce your overall cost of the fixed rate car loan.

Things to avoid about fixed rate car loans

Although fixed rate car loans offer a great deal of benefits and attractive features, there are certain issues that you need to consider when you apply for a fixed rate car loan.

Always read the fine print.

The most important thing to avoid is not understanding what you're getting into. Make sure you're aware of all fees, charges, terms and conditions before applying.

Early repayment fees.

There may be early termination fees or early payoff penalties with fixed rate car loans if you want to finalise your loan payment earlier than the agreed term.

Car eligibility.

Check the car you're planning to purchase is eligible under the terms of the loan. Most lenders will set maximum age limits on cars but it may also have to be of a certain condition.

Frequently Asked Questions

Finder writers are subject matter experts and use primary sources, in-depth research and interviews with other experts to ensure you're getting accurate, up-to-date information. Articles are fact checked in line with our editorial guidelines.

Thank you for your feedback!

Written by

Matt Corke

Head of Publishing Ventures

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Matt Corke is Finder’s head of publishing ventures. Prior to this he was head of publishing for Australia, New Zealand and emerging markets. Matt built his first website in 1999 and has been building computers since he was in his early teens. In that time, he has survived the dot-com crash and countless Google algorithm updates. See full bio

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