New car loans

This guide will help you understand and compare new car loans.

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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. - New Car Loan - New Car Loan


4.89 % p.a.

fixed rate


5.44 % p.a.

comparison rate

  • Early payout available
  • No monthly ongoing fee
  • Borrow up to $100,000
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100% confidential application - New 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: 4.89% p.a.
  • Comparison rate: 5.44% 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

Updated January 28th, 2020
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Application Fee Monthly Service Fee Monthly Repayment - New Car Loan
From 4.89% (fixed)
3 to 5 years
You'll receive a fixed rate from 4.89% 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.
Credit Concierge Car Loan
From 4.79% (fixed)
1 to 7 years
You'll receive a fixed rate of 4.79% p.a. with a comparison rate of 5.34% p.a.
Get access to over 20 providers to fund a new or used car.

Stratton Finance New Car Loan
From 4.69% (fixed)
3 to 7 years
$700 (for private seller vehicles this fee is $608)
You'll receive a fixed or variable rate depending on the lender you are approved with
Apply for up to $100,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.
Wisr Secured Car Loan
From 5.19% (fixed)
3 to 7 years
$655 (Includes PPSR registration and private sale fee, if applicable)
You'll receive a personalised interest rate from 5.19% p.a. to 16.49% p.a. based on your risk profile
A flexible car loan from $5,000 - $50,000 with personalised rates and rewards for strong credit customers.

Australian Military Bank Car Loan
From 5.71% (fixed)
1 to 7 years
$500 (from $100 to $500)
You'll receive a fixed rate between 5.71% p.a. and 8.66% p.a. based on your personal credit history
A flexible loan to help you finance a car, motorbike or boat up to five years old.
Westpac Car Loan
8.49% (fixed)
1 to 7 years
You'll receive a fixed rate of 8.49% p.a.
Finance a new or used car and benefit from convenient features for car buyers including a car search tool and the option to borrow extra for on-road costs.
St.George Secured Personal Loan - Fixed Rate
From 8.49% (fixed)
1 to 5 years
You'll receive a fixed rate from 8.49% p.a. based on the value of your car
Get a competitive rate and apply for a larger loan up to $80,000 when you attach a new or used car as security to the loan.

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 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.

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 can 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

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.

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.

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 Toyota HiLux From $27,847 76.6% Comparison review
Hands-on review
Ford Ranger 4x4 Ford Ranger From $32,385 85% Comparison review
Hands-on review
Toyota Corolla Ascent Sport Toyota Corolla From $26,927 80.25% Comparison review
Hands-on review
Mazda 3 G20 Pure Mazda 3 From $28,888 83% Comparison review
Hands-on review
Hyundai i30 Active Hyundai i30 From $20,990 82.20% Comparison review
Hands-on review
Mazda CX-5 Maxx Sport FWD Mazda CX-5 From $33,990 83.25% Comparison review
Mitsubishi Triton GLX+ Mitsubishi Triton From $24,990 80.50% Comparison review
Toyota RAV4 GXL Toyota RAV4 From $34,810 82.75% Comparison review
Hands-on review
Nissan Qashqai ST Nissan X-Trail From $28,990 76.25% Comparison review
Mazda CX-3 MAXX SPORT AWD 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

How can I work out my new car loan repayments?

You can use the 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*
Logo for IMB New Car Loan
IMB New Car Loan

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.

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 5.49% 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 5.69% 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 Stratton Finance New Car Loan
Stratton Finance New Car Loan

You'll receive a fixed or variable rate depending on the lender you are approved with
Apply for up to $100,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.

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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.

    • Avatarfinder 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,


  2. Default Gravatar
    helenJuly 22, 2015

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

  3. Default Gravatar
    SamJune 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?

    • Avatarfinder 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.



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