New car loans

As many as one in five Australians use a loan to finance their new car purchase and there is a staggering number of different car loans on the market, from banks, credit unions and dealerships. Let us help you by comparing your options and showing you what features to look for, so you can find the best deal for your situation. Discover all about new car loans in our guide below.

Loans.com.au - New and Dealer Used Car Loan

Loans.com.au - New and Dealer Used Car Loan

From

4.67 % p.a.

fixed rate

From

5.22 % p.a.

comparison rate

• Early payout available
• No monthly ongoing fee
• Borrow up to $100,000

100% confidential application

Loans.com.au - New and Dealer Used Car Loan

A competitive fixed rate to purchase a car up to four years old. Option to add on-road costs into loan amount.

• Interest rate: 4.67% p.a.
• Comparison rate: 5.22% p.a.
• Interest rate type: Fixed
• Application fee: $400
• Minimum loan amount: $5,000
• Maximum loan amount: $100,000

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New car loan comparison table

Loan amount

$

Loan term

1 year 2 years 3 years 4 years 5 years 6 years 7 years

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Name	Product	Interest Rate (p.a.)	Comparison Rate (p.a.)	Min Loan Amount	Loan Term	Application Fee	Monthly Service Fee	Monthly Repayment
Loans.com.au - New and Dealer Used Car Loan		From 4.67% (fixed)	5.22%	$5,000	3 to 5 years	$400	$0		You'll receive a fixed rate from 4.67% p.a. based on your risk profile Finance a new car and benefit from features such as fast approval, no ongoing fees and an optional balloon payment. Note: Settle the loan before 30 November 2020 and enter the draw to win a $1,000 fuel voucher. Terms & conditions apply.	Go to site More Info	Compare	loading Fetching your data...
IMB New Car Loan		5.45% (fixed)	5.8%	$2,000	1 to 7 years	$275.12 ($250 Application fee + $25.12 PPS registration fee)	$0		You'll receive a fixed rate of 5.45% p.a. A low minimum borrowing amount of $2,000 that you can use to purchase a new car or one up to two years old.	Go to site More Info	Compare	loading Fetching your data...
Stratton Finance New Car Loan		From 4.05% (fixed)	5.63%	$10,000	3 to 7 years	$700	$8.25		You'll receive a fixed or variable rate depending on the lender you are approved with Apply for up to $250,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.	Go to site More Info	Compare	loading Fetching your data...
Credit Concierge Car Loan		From 4.45% (fixed)	5%	$10,000	1 to 7 years	$350	$0		You'll receive a fixed rate of 4.45% p.a. with a comparison rate of 5% p.a. Get access to over 20 providers to fund a new or used car.	Go to site More Info	Compare	loading Fetching your data...
IMB Secured Personal Loan		6.45% (fixed)	6.8%	$2,000	1 to 5 years	$275.12 ($250 Application fee + $25.12 PPS registration fee)	$0		You'll receive a fixed rate of 6.45% p.a. Benefit from this competitive rate by securing the loan with a vehicle up to 6 years old. Use this flexible loan for any purpose.	Go to site More Info	Compare	loading Fetching your data...
Beyond Bank Low Rate Car Loan "Special Offer"		4.89% (fixed)	5.16%	$25,000	1 to 7 years	$175	$0		You'll receive a fixed rate of 4.89% p.a. Take advantage of a competitive rate, pre-approval and no early repayment fees when you finance a car under two years old.	Go to site More Info	Compare	loading Fetching your data...
CUA Secured Fixed Car Loan		6.79% (fixed)	7.16%	$5,000	1 to 7 years	$265 ($175 Establishment Fee + $90 Security Administration Fee)	$0		You'll receive a fixed rate of 6.79% p.a. A secured loan with a high maximum borrowing amount up to $100,000. Redraw facility and no monthly fees.	Go to site More Info	Compare	loading Fetching your data...
RateSetter Car Loan		From 4.89% (fixed)	5.44%	$10,000	3 to 7 years	$399 (from $249 to $799)	$0		You'll receive a fixed rate from 4.89% p.a. Borrow up to $100,000 with a RateSetter Car Loan and benefit from no early repayment or exit fees.	Go to site More Info	Compare	loading Fetching your data...
NRMA New Car Loan		From 5.69% (fixed)	6.39%	$5,000	1 to 7 years	$499	$0		You'll receive a fixed rate from 5.69% p. a. Purchase a new or used car up to 2 years old and benefit from a fixed rate and no monthly fees. Pre-approval available within 5 business hours.	Go to site More Info	Compare	loading Fetching your data...
People's Choice CU Discounted Personal Loan (Car Loan)		From 4.65% (fixed)	4.99%	$20,000	1 to 10 years	$250	$0		Borrow over $20,000 and secure with a new or used car less than 2 years (manufacture year 2018). Pre-approval, no monthly fees and fixed rate for 5 years.	Go to site More Info	Compare	loading Fetching your data...
MOVE Bank New Car Loan Finder Award		4.89% (fixed)	5.16%	$10,000	1 to 7 years	$195	$0		You'll receive a fixed rate of 4.89% p.a. Take advantage of a competitive rate, no ongoing fees and the flexibility to redraw and make extra repayments with no penalties.	Go to site More Info	Compare	loading Fetching your data...

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How new car loans work

The majority of new car loans are secured loans, meaning the lender has the right to repossess the vehicle if you default on your loan. While this is a steep price to pay, it also means you get a lower interest rate. Getting a new car loan doesn't mean you have to buy a car from a dealership – the majority of lenders will accept a vehicle up to two years old from a dealer or from a private sale.

When you apply, you and your car will need to pass eligibility criteria. Depending on how strict the lender is, you may need to use the entire loan amount on the car, although some lenders may allow you to borrow some extra money to cover the costs that come with buying a new car. You will need to repay the loan over the pre-agreed loan term.

Types of new car loans

• Secured car loans
  With a secured car loan, the bank is able to use the new car as security. That means they have a registered interest in the car and can repossess it if you default on your payments. The interest rate is lower than the rate you would get with an unsecured loan because a lender views it as less risky.

• Unsecured car loans
  An unsecured car loan works a little differently, as the bank or loan company does not hold the new car you are purchasing or any of your assets as security. If you fail to make your personal loan repayments, the bank has little power to do anything about it, except send reminders, or when the default becomes serious, send a debt collector to try and obtain the money. Your assets are safe, but the lender could take you to court. In response to the increased risk taken on by the lender, the interest rates are raised when compared with a secured loan.
• Bad credit car loan
  If your credit file isn't quite as stellar as you'd like and you still want a new car, you should consider a bad credit secured car loan. These loans come with a higher interest rate due to the increased risk factor.

How to compare new car loans

Listed below are the key factors you should consider when comparing new car loans.

• Interest rate and comparison rate
  You need to compare rates to check how competitive a loan is. The comparison rate includes additional costs, such as application fees, cost of the car valuation, legal fees and any other yearly or monthly charges that could be included.
• Other fees and charges
  There are some charges that are excluded from the comparison rate, such as early termination fees. The loan company should inform you of all possible charges before you finalise your loan agreement.
• Redraw facility and extra repayments
  These extra features can help you repay your loan earlier than expected. However, be mindful that costs related to redraw fees or early repayment fees and any cost savings, including fee waivers, are not part of the comparison rate and could have an influence on the loan's overall cost.
• Eligibility and suitability
  Will you be eligible for the new car loan and does your car meet the criteria set by the lender? You should check the minimum and maximum loan amounts on offer as well as the loan terms to ensure the loan is right for your needs.

The benefits and drawbacks of a new car loan

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Most popular new cars in Australia

Still doing your research and not sure which car you are going to purchase? Check out some of the vehicles below. We also have car reviews on Finder which go through the good and the bad of vehicles, to help you make a more informed decision. Below are some best-selling new cars and how much they cost.

	Car model	Price	Finder rating
	Toyota HiLux	From $27,847	76.6%	Comparison review Hands-on review
	Ford Ranger	From $32,385	85%	Comparison review Hands-on review
	Toyota Corolla	From $26,927	80.25%	Comparison review Hands-on review
	Mazda 3	From $28,888	83%	Comparison review Hands-on review
	Hyundai i30	From $20,990	82.20%	Comparison review Hands-on review
	Mazda CX-5	From $33,990	83.25%	Comparison review
	Mitsubishi Triton	From $24,990	80.50%	Comparison review
	Toyota RAV4	From $34,810	82.75%	Comparison review Hands-on review
	Nissan X-Trail	From $28,990	76.25%	Comparison review
	Hyundai Tucson	$28,990	79%	Comparison review

Help me choose a new car

Things to look out for with new car loans

• Once you have decided to take out a new car loan, it is essential that you work out all the costs associated with the car loan. The obvious things are the interest rates but there are other charges too. These may vary depending on the lender.
• Fixed interest rates are common among car loan companies and they will not change throughout the loan period. If you choose a variable interest rate, the loan provider could alter the interest rate at any time depending on the Reserve Bank rates.
• You should negotiate early repayment fees and redraw fees with the loan provider just in case your situation changes during the loan period.

Frequently asked questions about new car loans

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