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New Car Loans Comparison

Get a better rate on a new car loan by comparing with Finder.

What new car loan on Finder has the lowest rate?

  • Right now on Finder, the lowest new car loan comparison rate starts from 6.59% p.a. and is offered by IMB New Car Loan.
  • If you're looking for a new electric or hybrid vehicle, you could get a lower rate with a green car loan. The lowest rate through Finder's partners is 6.09% and is offered by loans.com.au.

Compare New Car Loans in Australia

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Name Interest Rate (p.a.) Comp. Rate (p.a.) Application Fee Monthly Fee Monthly Repayment
Simplify New Car Loan
Simplify Finance logo
Fixed1 - 7 Years $10,000 - $300,000
Interest Rate (p.a.)
6.19%
to 18%
Comp. Rate (p.a.)
6.6%
to 23%
Application Fee
$395
Monthly Fee
$0
Monthly Repayment
$622.21
Go to siteMore Info
loans.com.au - New - Variable Rate Special
loans.com.au logo
Variable3 - 7 Years $5,000 - $150,000
Interest Rate (p.a.)
6.24%
to 7.74%
Comp. Rate (p.a.)
7.36%
to 8.85%
Application Fee
$400
Monthly Fee
$8
Monthly Repayment
$630.83
Go to siteMore Info
IMB New Car Loan
IMB logo
Fixed1 - 7 Years $2,000 - $125,000
Interest Rate (p.a.)
6.24%
Comp. Rate (p.a.)
6.59%
Application Fee
$274.78
Monthly Fee
$0
Monthly Repayment
$619.01
Go to siteMore Info
You'll receive a fixed rate of 6.24% 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.
OurMoneyMarket New Car Loan ($5,000-$75,000)
OurMoneyMarket logo
Fixed1 - 7 Years $5,000 - $75,000
Interest Rate (p.a.)
6.57%
to 18.99%
Comp. Rate (p.a.)
7.19%
to 21.78%
Application Fee
$250
min.
Monthly Fee
$0
Monthly Repayment
$622.82
Go to siteMore Info
Stratton Finance New Car Loan
Stratton Finance logo
Fixed1 - 7 Years $10,000 - $300,000
Interest Rate (p.a.)
6.52%
to 18%
Comp. Rate (p.a.)
6.95%
to 23%
Application Fee
$395
Monthly Fee
$0
Monthly Repayment
$625.27
Go to siteMore Info
You'll receive a fixed rate from 6.52% 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.
RACV New Car Loans
RACV logo
Fixed1 - 7 Years $5,000 - $150,000
Interest Rate (p.a.)
7.29%
to 16.99%
Comp. Rate (p.a.)
8%
to 17.77%
Application Fee
$499
Monthly Fee
$0
Monthly Repayment
$635.67
Go to siteMore Info
You'll receive a fixed rate from 7.29% 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.
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Key takeaways

  • You can borrow the funds to buy a new car through a bank, dealership or other finance lender.
  • There are different options for car loans, but a secured car loan on average offers lower rates.
  • Fixed interest rates are most common, meaning the repayments stay the same for the duration of the loan.

How new car loans work

The majority of new car loan products 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.

Finder survey: What percentage of Australians in each state have taken out a car loan?

ResponseWAVICSAQLDNSW
No56.78%67.58%54.67%53.68%60.4%
Yes43.22%32.42%45.33%46.32%39.6%
Source: Finder survey by Pure Profile of 1113 Australians, December 2023
Data for ACT, NT, TAS not shown due to insufficient sample size. Some other states may also be excluded for this reason.

What's the difference between fixed and variable new car loans?

Variable rate car loans

A variable rate means the interest rate can fluctuate. Over the length of your loan your rate might go up or down (or both) depending on market interest rates. This means the repayments you're making at the start of your loan could change, and you need to be sure that you could meet your repayments if rates were to increase.

Fixed rate car loans

Fixed rate loans are usually a bit higher than variable rates, but you know that your repayments won't change throughout the loan term. If rates increase over the next few years, the fixed rate may end up being lower than the resulting variable rate. It's more common to find fixed rate car loans.

How to compare new car loans

1. Check interest rates

Compare interest rates and find the lowest option. Your interest rate will be personalised according to your credit history.

2. Watch out for fees

Car loan application and monthly service fees can cost you hundreds of dollars.

3. 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.

4. 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.

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.

Pros and cons 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 car loans attracts 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 finance, 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.

Bank loans vs dealership finance

Bank loanCar dealership
Interest rates won't have a dealership markup.Dealerships will handle all the paperwork for you.
You can get pre-approval so you know the budget you're working with.They are more likely to consider bad credit applications.
You'll have to do the paperwork yourself.They may advertise more attractive interest rates, but there's a catch...
Loans are less likely to have balloon payments.The catch is that they typically come with residual or balloon payments, where you have to fork out a hefty lump sum.

How much are Australians borrowing on average?

Finder's Consumer Sentiment Tracker shows that on average Australians are carrying approximately $11,987 through their car loan in 2023.

Meanwhile, the latest ABS figures show that new vehicle lending is currently just under $1.5 billion, as of April 2024, increasing from just over $1 billion 12 months before.

Frequently asked questions about new car loans

Richard Whitten's headshot
Editor

Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio

Richard's expertise
Richard has written 552 Finder guides across topics including:
  • Home loans
  • Property
  • Personal finance
  • Money-saving tips

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