New car loans with rates from 5.29%

Find the right finance to get on the road in a new car for less.

If you're looking to buy your first car or upgrade to a new one, a car loan can help you finance your new purchase. A variety of different car loans are available from banks, credit unions and dealerships. By comparing your options and knowing what features to look for, you can find the best deal for your situation. Find out all about new car loans in our guide below.

Latitude Motor Vehicle Loan

Latitude Motor Vehicle Loan

From

6.99 % p.a.

fixed rate

From

8.10 % p.a.

comparison rate

  • Competitive low rate
  • Up to 7 years to repay
  • New or used vehicles accepted
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Latitude Motor Vehicle Loan

A competitive fixed rate loan available for new and used vehicles.

  • Interest rate from: 6.99% p.a.
  • Comparison rate: 8.10% p.a.
  • Interest rate type: Fixed
  • Application fee: $295
  • Minimum loan amount: $5,000
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New car loans comparison

Rates last updated August 16th, 2018
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Monthly Service Fee Application Fee Product Description Monthly Repayment
Latitude Motor Vehicle Loan
From 6.99% (fixed)
8.1%
$5,000
1 to 7 years
$10
$295
Apply online to finance a new or used motor vehicle and receive a response in 90 seconds. You will receive a competitive tailored rate of between 6.99% p.a. to 14.99% p.a. based on your risk profile.
Loans.com.au - New Car Loan
From 5.44% (fixed)
5.99%
$5,000
3 to 5 years
$0
$400
This car loan is for new cars and offers a low fixed rate and no ongoing fees.
Stratton Finance New Car Loan
From 5.29% (fixed)
6.56%
$18,000
1 to 7 years
$8.90
$459.20
Apply for up to $100,000 and have up to 7 year(s) to repay. You can use cash or trade in a vehicle to use as a deposit.
IMB New Car Loan
5.99% (fixed)
6.34%
$2,000
1 to 7 years
$0
$250
Borrow up to $75,000 for a new car up to two years old. Competitive 5.99% p.a. rate available to all approved applicants.
Sydney CU Special Variable Car Loan
5.95% (variable)
5.95%
$10,000
1 to 7 years
$0
$0
Benefit from a flexible, variable rate to finance a car up to 3 years old with SCU. Note: Approval fee waived until 30th September 2018.
Beyond Bank Low Rate Car Loan
From 5.69% (fixed)
5.97%
$25,000
1 to 7 years
$0
$175
Take advantage of a competitive rate, pre-approval and no early repayment fees when you finance a car under two years old.
Bank Australia Car Loan
6.45% (fixed)
6.66%
$1,000
1 to 7 years
$0
$150
A competitive rate and the ability to offset your car’s carbon emissions for the loan term.
RACV New Car Loans
From 5.99% (fixed)
6.55%
$15,000
1 to 7 years
$0
$399
A competitive rate car loan from RACV with no monthly fees and 5-hour loan approval.
St.George Secured Personal Loan - Fixed Rate
From 8.49% (fixed)
9.6%
$3,000
1 to 5 years
$12
$195
Use your car as security and benefit from a competitive interest rate.
NRMA New Car Loan
From 5.99% (fixed)
6.55%
$5,000
1 to 7 years
$0
$399
Purchase a new car with an NRMA Car Loan with a fixed rate term and no monthly fees. Pre-approval available within 5 business hours.

Compare up to 4 providers

Compare New Car Loans

  • Stratton Finance new car loan: 6.56% p.a. comparison rate. Stratton Finance has access to a wide range of car loan lenders.
  • RACQ new car loan: 6.72% p.a. comparison rate. Get a car loan that is suitable for new vehicle purchases with no monthly administration fees.
  • IMB new car loan: 6.34% p.a. comparison rate. Enjoy a new car loan with no monthly service fees and no early repayment.
  • Bank Australia car loan: 6.66% p.a. comparison rate. Get a car loan that will offset your new car's carbon emissions.

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 specified 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 if you default on your payments. The interest rate is lower than the rate you would get with an unsecured loan because there is less risk for the lender.
  • Unsecured car loan.
    An unsecured 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 default on 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.
  • Variable rate car loan.
    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 can increase if the rates go up. Your payments may also come down if the rates start to fall.
  • Fixed rate car loan.
    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.
  • Bad credit car loan
    If your credit file isn't quite as stellar as you'd like and you still need a new car, you can consider a bad credit secured car loan. These loans come with a higher rate of interest due to the increased risk factor. Read on to find out more.

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

  • It helps you make your new car purchase
  • New cars are generally easier to finance, so you could find a lender easily
  • 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.

Things to look out for about new car loans

  • Once you have decided to take out a new car loan, it is essential that you establish all the costs associated with the car loan with the loan provider. The obvious costs are the interest rates but there are other costs 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

How can I work out my new car loan repayments?

You can use the finder.com.au car loan repayment calculator.

Do any brands offer pre-approval?

You can find out about pre-approved car loans here.

I’m on a pension, can I still get a loan?

You may still be eligible for a loan from a bank or a short-term loan provider. Please take a look at our guide on personal loans for pensioners.

Car Loan Offers

Important Information*
IMB New Car Loan

Borrow up to $75,000 for a new car up to two years old. Competitive 5.99% p.a. rate available to all approved applicants.

Loans.com.au - New Car Loan

This car loan is for new cars and offers a low fixed rate and no ongoing fees.

Latitude Motor Vehicle Loan

Apply online to finance a new or used motor vehicle and receive a response in 90 seconds. You will receive a competitive tailored rate of between 6.99% p.a. to 14.99% p.a. based on your risk profile.

Stratton Finance New Car Loan

Apply for up to $100,000 and have up to 7 year(s) to repay. You can use cash or trade in a vehicle to use as a deposit.

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6 Responses

  1. Default Gravatar
    bayiOctober 3, 2016

    i have a home loan with Toyota.So can i get a car loan from them in lo rate as a home loan.

    • finder Customer Care
      ElizabethOctober 4, 2016Staff

      Hi Bayi,

      Toyota doesn’t offer home loans so you may be thinking of another lender. Toyota’s has a finance branch that lets you fund vehicle purchases, but interest rates are as advertised.

      Hope this helps,

      Elizabeth

  2. Default Gravatar
    helenJuly 22, 2015

    hi would like to know if i can apply for a loan with centrelink payments

  3. Default Gravatar
    June 16, 2015

    Hi there,
    i been going crazy trying to find out the best finance for my car. Not sure if i should lease or redraw into my home loan. Is there any guidance i can get?

    • finder Customer Care
      ElizabethJune 16, 2015Staff

      Hi Sam,

      Thanks for your question.

      Unfortunately I’m unable to offer you personal advice, as the best finance for your situation will depend on a number of different factors. You can have a read of this page that details the different options that are available and explains how you can compare them.

      I hope this has helped.

      Thanks,

      Elizabeth

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