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New Car Loans

Learn how to find and compare new car loan options. It could save you hundreds.

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Name Product Mobile details underline Interest Rate (p.a.) Comp. Rate (p.a.) Rate Type Application Fee Monthly Fee Monthly Repayment
IMB New Car Loan Fixed, 1 - 7 Years, $2,000 - $75,000
IMB New Car Loan
1 - 7 Years, $2,000 - $75,000
4.88%
5.23%
Fixed
$275.12
$0
You'll receive a fixed rate of 4.88% p.a.
A low minimum borrowing amount of $2,000 that you can use to purchase a new car or one that's up to two years old.
RACV New Car Loans Fixed, 1 - 7 Years, $5,000 - $150,000
RACV New Car Loans
1 - 7 Years, $5,000 - $150,000
5.99%
6.68%
Fixed
$499
$0
You'll receive a fixed rate from 5.99% p.a.
A larger loan of $5,000 or more to help you buy a new or used car. 5-hour pre approval available and no ongoing fees.
NRMA New Car Loan Fixed, 1 - 7 Years, $5,000 - $130,000
NRMA New Car Loan
1 - 7 Years, $5,000 - $130,000
5.99%
6.68%
Fixed
$499
$0
You'll receive a fixed rate from 5.99% p.a.
Purchase a new or used car up to 3 years old and benefit from a fixed rate and no monthly fees. Pre-approval available within 5 business hours.
Stratton Finance New Car Loan Fixed, 1 - 7 Years, $10,000 - $300,000
Stratton Finance New Car Loan
1 - 7 Years, $10,000 - $300,000
4.44%
to 18%
5.76%
to 19.61%
Fixed
$482
$8.90
You'll receive a fixed rate from 4.44% p.a. depending on the lender you are approved with.
Apply for up to $300,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.
OurMoneyMarket Car Loan Fixed, 1 - 7 Years, $2,001 - $75,000
OurMoneyMarket Car Loan
1 - 7 Years, $2,001 - $75,000
5.85%
to 14.99%
6.47%
to 21.14%
Fixed
1.5% - 6%
min. $250
$0
You'll receive a fixed interest rate from 5.85% p.a. to p.a. based on your risk profile.
Borrow between $2,001 and $75,000 to finance a new or used car up to 7 years.
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Compare up to 4 providers

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 second-hand car dealer or a private sale.

When you apply, you and your car will need to pass the 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 loan
    With a secured car loan, the bank is able to use the new car as security. That means it has 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 loan
    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. When you've consistently lapsed on repayments, it will 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 report 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.

What is the difference between fixed and variable new car loans?

Variable rate car loans

A variable rate means the interest rate will fluctuate (according to the Reserve Bank of Australia's cash rate), while a fixed rate remains the same for the length of the loan's term. The variable rate might be cheaper now, but it can and will fluctuate with the market interest rates. This means your repayments might increase if the rates go up. Your payments may also come down if the rates start to fall.

Fixed rate car loans

By comparison, a fixed rate loan might initially be a bit higher than the variable rate, but you know that your repayments won't change throughout the loan term. If the rates increase over the next few years, it is possible that the fixed rate may end up being lower than the resulting variable rate.

How to compare new car loans

  • Check interest rates
    Compare interest rates and find the lowest option. Your interest rate will be personalised according to your credit history.
  • Watch out for fees
    Car loan application and monthly service fees can cost you hundreds of dollars.
  • Look for a loan with money-saving features
    You can get out of debt faster and save money with a loan that lets you make penalty-free extra repayments. A redraw facility lets you pull out those extra repayments to spend in an emergency.
  • Choose a suitable loan length
    Also known as loan term, this is how many years it will take to pay off your loan. A longer loan term makes your monthly payments cheaper, but you’ll pay more interest all up.

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Going Green: Polestar embraces the shift to electric cars

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Tesla has started selling the Model Y in Australia

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2023 Range Rover Sport is schmick

Range Rover has crammed features into the 2023 Sport 4x4 that you didn't even know you needed.

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Did you know

Finder not only helps you find and compare new car loans, but we also have vehicle comparisons. If you still aren't sure about which car you are going to purchase, read our car reviews and compare models against each other.

The benefits and drawbacks of a new car loan

  • It fills your coffers so you can buy a new car.
  • It spreads the cost over several years.
  • New cars are generally easier to finance, so you could find a lender without fuss.
  • You get a new vehicle, benefiting from improved safety equipment, fuel efficiency, technology and passenger comforts.
  • The price of the car is often higher than the resale value of the car. This is because all loans attract interest and new cars can lose market value quickly, through depreciation.

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.

What we thought of these new cars...

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2022 Polestar 2 long-range dual motor review

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The Polestar 2 gets a reduced footprint among other sustainably focussed upgrades., so we headed to Tasmania to see if it is any good.

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2022 Mitsubishi Eclipse Cross PHEV review

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2022 Isuzu MU-X LS-T Review

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The previous generation MU-X earned a reputation for being hard-working, reliable and a value proposition. Does the new 2022 model live up to the reputation?

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2021 Abarth 595 Competizione Review

2021 Abarth 595 Competizione Review

I bet you haven’t seen many of these on the road before – it’s an Abarth 595 Competizione.

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2022 Kia Cerato Sport+ hatch review

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Car insurance for your new car

While CTP insurance is a legal requirement in Australia, taking out additional comprehensive or third party cover is highly recommended. Avoiding additional car insurance could mean unforeseen expenses if you were ever involved in an accident, even if it was not your fault. Our extensive car insurance guide will give you all the information you might need about insurance, its types, costs and more. You'll also be able to compare insurance providers and get quotes side by side.

Compare car insurance in Australia

Frequently asked questions about new car loans

Logo for IMB New Car Loan
IMB New Car Loan

You'll receive a fixed rate of 4.88% 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.

Logo for Beyond Bank Low Rate Car Loan "Special Offer"
Beyond Bank Low Rate Car Loan "Special Offer"

You'll receive a fixed rate of 4.69% p.a.
Take advantage of a competitive rate, pre-approval and no early repayment fees when you finance a car under two years old.

Logo for RACV New Car Loans
RACV New Car Loans

You'll receive a fixed rate from 5.99% p.a.
A larger loan of $5,000 or more to help you buy a new or used car. 5-hour pre approval available and no ongoing fees.

Logo for NRMA New Car Loan
NRMA New Car Loan

You'll receive a fixed rate of 5.99% 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.

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