New Car Loans

Information verified correct on December 4th, 2016

Find the right finance to get on the road for less.

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

IMB New Car Loan

IMB New Car Loan

Apply for IMB New Car Loan and enjoy a great low fixed interest rate with no ongoing fees.

  • Interest Rate From: 6.34% p.a.
  • Comparison Rate: 6.62% p.a.
  • Interest Rate Type: Fixed
  • Application Fee: $199
  • Minimum Loan Term: 1 year
  • Maximum Loan Term: 7 year
  • Minimum Loan Amount: $2,000
  • Maximum Loan Amount: $75,000

Comparison of new car loans

Rates last updated December 4th, 2016
$
Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Application Fee Monthly Repayment
IMB New Car Loan
This fixed rate new car loans up to 2 years old features no early repayment penalties
From 6.34% (fixed) 6.62% $2,000 1 to 7 years $199 Go to site More
Matchacar Financing
Get a tailored financing solution for buying your next car.
From 5.35% (fixed) 6.04% 1 to 7 years $350 Go to site More
RACV Car Loans
Enjoy this fixed rate new car loan offer from RACV. No ongoing fees.
From 6.2% (fixed) 6.73% $15,000 1 to 7 years $378 Go to site More
NRMA Car Loan
Purchase a new car with an NRMA Car Loan with a fixed rate term and no monthly fees.
From 6.2% (fixed) 6.73% $15,000 1 to 7 years $378 Go to site More
IMB Secured Personal Loan
A secured loan from IMB with flexible repayment features
From 7.39% (fixed) 7.67% $2,000 1 to 5 years $199 Go to site More
Latitude Personal Loan (Secured)
Can be used for whatever purpose: renovating, buying a car, booking a holiday. Funds can be in your account in as little as 24 hours.
From 12.99% (fixed) 14.2% $3,000 2 to 7 years $250 (Loans under $4000 - $140) Go to site More
St.George Secured Personal Loan - Fixed Rate
Get behind the wheel of your perfect car with a competitive interest rate from St.George. Get an application response within 60 seconds.
From 8.49% (fixed) 9.39% $3,000 1 to 5 years $195 Go to site More
Bank of Melbourne Secured Car Loan
A low rate personal loan from Bank of Melbourne with variable or fixed option.
From 8.49% (fixed) 9.39% $3,000 1 to 5 years $195 Go to site More
BankSA Fixed Rate Car Loan
Apply for a fixed rate car loan from multi-award winning BankSA.
From 8.49% (fixed) 9.39% $3,000 1 to 5 years $195 Go to site More

More Car loan comparisons

Need more information? Check out the details in the table below.

Personal LoanFeature
Get into your new car with an interest rate from 11.99% p.a.
A fixed rate loan that offers a competitive rate from 13.95% p.a.
A loan for your new car from the Royal Automotive Club of Queensland
Get into your new car sooner if you're approved from BankSA

How does a new car loan work?

The majority of new car loans are secured, 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. New car loans don't mean the car has to be bought from a dealership – the majority of lenders will accept a vehicle up to two years old from a dealer or private sale.

When you apply you and your car will need to pass eligibility criteria to be approved. Depending on how strict the lender is, the entire loan amount may need to be used on the car, although some lenders may allow extra to cover the costs that come with buying the car. You then repay the loan over the specified loan term.

What types of new car loans are available?

  • Secured car loan.
    A secured car loan is a loan when the bank is able to use the new car as security if the borrower defaults on payments. The interest rate is less than that offered for 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 the borrower happens to default on the 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.  The borrower's assets are safe but there is still the potential of the lender taking the borrower to court.
  • Variable rate car loan.
    The variable rate means the interest rate will fluctuate according to the Reserve Bank of Australia's cash rate while a fixed rate remains 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 the repayments can increase if the rates go up. The payments may also come down if the rates start to fall.
  • Fixed rate car loan.
    By comparison, a fixed rate loan might be initially a bit higher than the variable rate, but the borrower has the certainty that the repayments won't change throughout the loan term. If the rates are likely to 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 and you are still in need of 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 you can compare the new car loans on this page

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

  • Interest rate and comparison rate.
    Compare rates to check how competitive a loan is. The comparison rate includes additional costs, such as the application cost of the valuation of the car, fees, 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 of the loan fees. All other possible charges should be indicated by the loan company before the agreement between the loan company and the borrower is finalised.
  • Redraw facility and extra repayments.
    These type of extra features that may come with your car loan can help 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 loan and does your car meet the criteria set by the lender? You should also 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 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 a decision has been made to take out a new car loan, it is essential that all the costs associated with the car loan are established 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 amongst car loan companies and they will not change throughout the loan period. It is more uncertain choosing a variable interest rate as the loan provider could alter the interest rate at any time depending on the Reserve Bank rates.
  • Early repayment fees and redraw fees should be negotiated with the loan provider just in case the borrower's situation changes throughout 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 located on this page.

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 short-term loan provider. Please take a look at our guide on personal loan for pensioners.


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Related Posts

IMB New Car Loan

This fixed rate new car loans up to 2 years old features no early repayment penalties

RACV Car Loans

Enjoy this fixed rate new car loan offer from RACV. No ongoing fees.

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6 Responses to New Car Loans

  1. Default Gravatar
    bayi | October 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.

    • Staff
      Elizabeth | October 4, 2016

      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
    helen | July 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?

    • Staff
      Elizabeth | June 16, 2015

      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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