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Compare Used Car Loans Australia

What is the cheapest used car loan on Finder?

  • Right now on Finder, the cheapest used car loan comparison rate starts from 6.6% p.a. and is offered by Simplify Used Car Loan.

Compare used car loans

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Name Interest Rate (p.a.) Comp. Rate (p.a.) Application Fee Monthly Fee Monthly Repayment
loans.com.au - Variable Rate Used Car < 5 years
loans.com.au logo
Variable3 - 7 Years $5,000 - $150,000
Interest Rate (p.a.)
to 7.74%
Comp. Rate (p.a.)
to 8.99%
Application Fee
Monthly Fee
Monthly Repayment
Go to siteMore Info
OurMoneyMarket Used Car Loan - No Vehicle Age Limit
OurMoneyMarket logo
Fixed1 - 7 Years $2,001 - $75,000
Interest Rate (p.a.)
to 18.99%
Comp. Rate (p.a.)
to 21.78%
Application Fee
Monthly Fee
Monthly Repayment
Go to siteMore Info
Credit Concierge Used Car Loan
Credit Concierge logo
Fixed1 - 7 Years $10,000 - $1,000,000
Interest Rate (p.a.)
to 17.45%
Comp. Rate (p.a.)
to 18.91%
Application Fee
Monthly Fee
Monthly Repayment
Go to siteMore Info
Stratton Finance Used Car Loan
Stratton Finance logo
Fixed1 - 7 Years $10,000 - $300,000
Interest Rate (p.a.)
to 18%
Comp. Rate (p.a.)
to 23%
Application Fee
Monthly Fee
Monthly Repayment
Go to siteMore Info
You'll receive a fixed rate loan from 6.52% p.a. with a comparison rate of 6.95% p.a.
A used car loan of up to $300,000 with quick approval times and balloon payment options.
Simplify Used Car Loan
Simplify Finance logo
Fixed1 - 7 Years $10,000 - $300,000
Interest Rate (p.a.)
to 18%
Comp. Rate (p.a.)
to 23%
Application Fee
Monthly Fee
Monthly Repayment
Go to siteMore Info
RACV Used Car Loans
RACV logo
Fixed1 - 7 Years $5,000 - $150,000
Interest Rate (p.a.)
to 16.99%
Comp. Rate (p.a.)
to 17.77%
Application Fee
Monthly Fee
Monthly Repayment
Go to siteMore Info
You'll receive a fixed rate from 8.49% p.a.
Benefit from no ongoing fees, 5-hour approval and a 21-day satisfaction guarantee. Interest rate discounts for members.
Showing 6 of 6 results

How do used car loans work?

Used car loans can be used to completely or partially cover the cost of a used car. Once you get a loan approved, the lender hands over the money and you can purchase the car. Then you start making monthly repayments, plus interest, until you pay off the loan.

Types of used car loans

There are a few types of finance when you're buying a secondhand car.


Secured car loans

With secured car finance, the vehicle you purchase is held as collateral against the used car loan. As a result, lenders will offer a more competitive interest rate – but you put your vehicle at risk if you can't make repayments.


Unsecured car loans

With unsecured car loans, you have more freedom on how you spend the money and no collateral is taken but as there is more risk for the lender, you will get a higher interest rate.

As there is no security, the lender is less concerned about the age or condition of the car. This is why unsecured loans are more common with older used cars. They are essentially a personal loan.


Dealership finance

You might find finance options through used car dealerships. They can offer some attractive used car finance rates with their chosen finance partner. However, these agreements often have hefty deposits and balloon payments, which require you to make a final payment of several thousand dollars. The repayments seem smaller and cheaper than they really are.

How old can a car be for a used car loan?

If you're buying a used car with a secured car loan, your lender has the right to sell your car to recover its costs if you can't repay the loan. This means the lender cares about the age of the car you're buying.

Many lenders only offered secured car loans for cars that are less than 7 years old. Some lenders accept cars up to 12 years old. The older the car, the higher your interest rate may be.

An unsecured car loan doesn't require the vehicle as security. So the age of the car is not an issue.

Maximum ages of used cars accepted by different lenders in Australia

LenderProduct nameMaximum age of carLoan amountFind out more
Macquarie BankMacquarie Bank Used Car Loan Fixed6 yearsFrom $10,000Details
Beyond BankBeyond Bank Low Rate Car Loan6 yearsFrom $5,000Details
Beyond BankBeyond Bank Flexi Car LoanOver 6 yearsFrom $5,000Details
CommBankCommBank Secured Car Loan5 years$4,000 to $100,000Details
Great Southern BankGreat Southern Bank Fixed Rate Car Loan7 yearsFrom $5,000Details
DrivaDriva Car Loan7 years$1,000 to $250,000Details
loans.com.auloans.com.au - Variable Rate Used Car Loan8+ yearsFrom $5,000Details
IMBIMB Secured Personal Loan6 years$2,000 to $75,000Details
NRMANRMA Used Car Loan10 years$5,000 to $130,000Details
OurMoneyMarketOurMoneyMarket New Car Loan10 years$2,001 to $75,000Details
People's Choice Credit UnionPeople's Choice CU Discounted Personal Loan (Car Loan)10 years$20,000 to $120,000Details
RACVRACV Used Car Loans10 yearsFrom $5,000Details
St.George BankSt.George Secured Personal Loan - Fixed Rate12 years at loan expiry$3,000 to $100,000Details
Suncorp BankSuncorp Bank Secured Car Loan7 years$5,000 to $80,000Details
Symple LoansSymple Loans Personal Loan7 years$5,000 to $80,000
WestpacWestpac Car Loan7 years$10,000 to $100,000Details

Used car loan calculator

Fill in our used car loan calculator to see how much your used car loan could cost you. You'll need to enter:

  • Loan term. How long you want the loan to be in years (between 1 and 7 years is the norm).
  • Rates and fees. Put in the loan interest rate and any loan fees.

Then you can see see how much you'll end up paying.

Your loan details

Loan amount
Repayment type
Interest rate
Interest only period
Payment frequency
Extra monthly repayments

Overview of your loan

Once the interest only period ends, your estimated repayments will be
(including extra )
Total loan repayments:
Total interest payable:
Compare car loans
By making extra monthly repayments of
Your loan term could reduce by:
You could pay less interest, saving:
Years remaining Principal remaining
Calculator Assumptions: The above calculations are worked out assuming you’re paying off a principal and interest loan where the interest rate remains the same over the life of the loan. The repayment amounts do not take into account any additional fees or charges that may be charged to your loan (e.g. application fees).
Disclaimer: Whilst every effort has been made to ensure the accuracy of this calculator, the results should be used as indication only. They are neither a quote nor a pre-qualification for a loan.

How do I apply for a used car loan?

Once you've found a suitable used car loan, you can apply. Most lenders accept online applications. You will need:

  • Your personal identification details.
  • Evidence you can repay the loan (employment information, recent payslips).
  • Details of the car you're buying (make, model, year, registration details).

What should I look for in used car loans?

  • Interest rate. The higher the interest rate the more expensive your loan becomes. You always want a lower interest rate. But lenders charge different rates based on your car, your loan amount, and your credit score.
  • Payment flexibility. Check whether lenders will allow you to pay at your own schedule, whether weekly, fortnightly or monthly.
  • Loan term. If you choose a longer time to pay off the loan you'll have smaller monthly repayments. But you'll end up paying more interst over time. You need to find the right balance between affordability and long term cost.
  • Fees. Many loans have application fees, which can vary from $200 to $800. Other loans may charge a monthly service fee. A loan with a $10 monthly service fee over 3 years will cost you $360. Some used car loans penalise you for repaying the loan early, while others don't charge early termination fees.
  • Vehicle criteria. Make sure the lender is prepared to offer you a used car loan for the age and model of vehicle you're looking at.
  • Pre-approval. Conditional pre-approval means you know how big a loan you can get. This puts you in a great place when haggling.
  • Other features. A redraw facility, where you can claim back any money you've overpaid, might be useful.

Pros and cons of buying a used car

There are plenty of benefits to buying a used car over brand new:

  • Value. You can get a used car for a cheaper price than a similar, brand-new vehicle. Let someone else pay for the first few years' depreciation (according to RACQ, it could be as much as $299.12 per week).
  • Avoid salespeople. Buying a used car means avoiding professional salespeople using high-pressure selling strategies. Buying privately means you don't have to pay the extra that a dealer puts on top.
  • No wait. There's often a long wait for new cars. Sometimes the dealer only has a display model and you have to wait weeks or months for your car to be built and shipped.
  • More options. Buying second-hand means you have more options, and can possibly get a higher-end model than you would if buying brand new.
  • Insurance. A lower value can mean lower car insurance costs.

There are some downsides to buying used:

  • You need to do more research. Buying used, there's a chance you end up buying a car that's in worse shape than it looks. You really need to take a good look at the car, and spend time researching online. A test drive is also essential.
  • Out of warranty. Depending on the age of the car you're buying, you might miss out on warranty protections.
  • Paperwork. Certain used vehicles might need a roadworthiness certificate or safety inspection
  • Tighter financing conditions. It is harder to get a used car loan compared to a loan on a new car. But this really depends on the age and condition of the vehicle. You may just need to shop around a bit more for a suitable car loan, or accept a slightly higher interest rate.

Used car buying money-saving tips

As well as shopping around for a great used car loan deal, you can save yourself even more money with these tips.

new car

Consider less popular brands and models

The bestselling new cars will almost certainly become popular used car models. As a result, sellers can set their prices accordingly. Rather than getting fixated on one brand or model and trim, be open to rival models. You'll benefit in several ways. First, car manufacturers that are trying to compete with a sought-after and established marque might introduce longer warranties, better standard specifications and even drop prices. You could swoop in and take advantage of this by purchasing the rival brand on the used car market.

new car

To save money, buy privately

Used car dealers are a middle party. Yes, they might offer attractive things like short-term warranties, but in reality, they can add a couple of grand onto a car's sticker price to cover their costs.

If you have a car enthusiast friend or family member, take them along to a private sale and you could end up with a much cheaper used car. If you don't know a car expert, consider paying for a pre-purchase inspection, which can help you avoid buying a lemon.

new car


Some people hate haggling, it makes them cringe. Most second-hand car dealers and private sellers will expect you to at least try. Some may even mark their car up a little, with the expectation that buyers will try to knock them down. Remember, this is a business transaction, so stay friendly and emotionally detached from the car.

Haggling doesn't have to become a verbal slanging match. You can be polite and negotiate – sometimes even being a bit cheeky might get you some money slashed off the deal. If you smile while you're doing it, that goes a long way. A common technique for bartering is to simply point out things you're not happy with, for example the tyres are heavily worn and need replacing, the windscreen is scratched or there are stone chips in the paint. If you are sincere and genuine, a lot of sellers will relent and meet you halfway. Spend some time researching the car model; find out if it needs any major scheduled work soon like timing chain/belt replacements or complete fluid renewals.

Phrase things in a positive way. Instead of saying "I want some money off", try asking "How much money are you willing to knock off?".

Equip yourself to haggle like a pro by looking up the market values of the car you're viewing. This can be done on sites like redbook.com.au. That should help you cut through the chancers who are trying to flip a car by buying it, giving it a valet and selling it on.

Never, ever let the seller know your budget. Also, remember that a lot of private sellers need to sell their car. They might have bought a new one and are currently paying for two vehicles!

If you're buying from a used car dealer, it helps to know the prices of similar or exact models on sale by their competitors. Then you can say "Company X is doing this car for this amount, can you match it?" Some people suggest even printing out the sales listing to show them.

The most powerful negotiation technique is always being prepared to walk away. Sometimes, you'll get a call later and suddenly the seller can meet your offer. If something's not right about the car or the seller, cut your losses and move onto the next prospective used car.

Above everything else, stay calm and never rush into things!

new car

Consider a previous generation model

If the car you're after has recently received a facelift or been replaced with an updated model, the previous generation might drop in value. That means you can cash in by purchasing the older car.

new car

Step down a trim level or two

It's tempting to want every creature comfort on offer in a used car, but if you're willing to step down a trim grade or two, you can save hundreds, if not thousands of dollars.

new car

Be flexible on the odometer

You might see a used car that's covered thousands of kilometres more than a similarly aged vehicle. Don't discount the higher mileage model outright, because modern engines work better when up to full operating temperatures.

Around town driving, with short intermittent runs, the car doesn't always get up to temp. Plus, those urban roads are covered in potholes that really hammer the car's suspension and bushes.

If a car has covered 20,000km, but this was all around town, while another has done 50,000km (with a lot of motorway driving and excellent maintenance), then the higher clock reading car should be cheaper and potentially be in just as good (if not better) mechanical condition.

Which used car should I buy?

There are hundreds of different models on the used car market, so you might find things overwhelming.

Here's how to narrow the decision down.

Body style

The first and most important decision is, what kind of vehicle are you looking for? Each have their own merits and downsides.

Car body typeProsCons
Light car
Light car body type
  • Great for new and young drivers
  • Easy to handle and park
  • Ideal for cities and towns
  • Extremely economical
  • Limited rear passenger space
  • Small boots
  • Small engines have to work hard on motorways
Small car
Small car body type
  • Great for new and young drivers
  • Still easy to park and drive
  • Decent in towns and metro areas
  • Very economical
  • Hot hatch versions available
  • Hybrids and electrics available
  • Practical boot size for everyday living
  • Sedan or hatch variants on offer
  • Some luxury models on offer
  • Some models have cramped second row of seats
  • Boot might not be big enough for family trips
Medium car
Picture not described
  • Offers a great all-round practicality
  • Decent size for families of four
  • Luxury models on offer
  • Electric and hybrid models available
  • Should be comfortable for four adults, five at a push
  • Wagon models have impressive boots
  • Less economical than smaller vehicles
  • Not great for large families
Large car
Large car body type
  • Plenty of room for up to five adults
  • Many luxury models available
  • Practical size for carrying, especially as a wagon
  • Optimum comfort for long-distance driving
  • Less economical
  • Market dominated by higher-end models
  • Cumbersome around town
Sports car
Sports car body type
  • Fun weekend toy, with the option for daily driving for a couple
  • Soft-tops available
  • Fast and exciting
  • Prestigious brands
  • Thrilling looks
  • Boots vary widely but aren't typically generous
  • Seating for four is usually a big ask
  • Can be low to ground, not great over speed humps
  • Firm suspension can be jarring
Small SUV
Small SUV body type
  • Extremely popular, with plenty of choices
  • Some hybrid models and a few electrics
  • Practical all-rounders
  • Higher up seating position
  • Proportions can mean more interior room
  • Economy has improved over the years
  • Easier to get in than lower cars
  • Still usable around the city
  • Not as much room as larger models
  • Fuel economy might not be as good as a smaller car
  • Handling might not be as sorted as cars
Medium SUV
Medium SUV body type
  • Great all-rounder
  • Electric and hybrids available
  • Reasonable for towing
  • Seven seater models available
  • Good for families
  • Prestige models available
  • Third row seats could be short on space
  • Less economical
  • Larger body might be more clunky in town
Large SUV
large suv type
  • Electric models and hybrids available
  • Good for towing trailers
  • Some off-road capable models
  • Larger interiors
  • Seating for up to eight
  • Luxury models available
  • Lots of passenger comforts
  • Some rugged, ute-based models
  • Large boots
  • Less economical
  • Cumbersome size for multi-storey and tight car parks
People mover
People mover body type
  • Seats for up to nine
  • Sliding doors on some models make entry and exiting easier
  • Higher up seating position
  • Doubles up as a van
  • Highly practical
  • Large, van-like proportions not great for street parking
  • Smaller used market
Ute body
  • Large payloads
  • Great for business
  • Hard-wearing
  • Off-road capability
  • High towing capacity
  • Seats up to five
  • Premium interior models available
  • High seating position
  • Practical
  • Beefy engine and boxy shape not great for fuel economy
  • Cargo space needs securing
  • Restricted interior storage
  • Higher maintenance requirements
Van body
  • Large, covered cargo space
  • Decent payloads
  • Solid towing capacity
  • Ideal for tradies
  • Crew cabs available with five seats
  • Can be converted into a temporary or permanent camper
  • Lots of bodywork for advertising
  • Panel van has limited visibility
  • Economy not amazing, but not as bad as a full-size truck
  • Often have workhorse spec interiors

Petrol, diesel, hybrid or electric?

Once you've nailed down the type of car you're considering, you need to think about what kind of fuel source you're looking for.

Petrol cars are plentiful, they're becoming more efficient and petrol is cheaper to buy at the pump. Petrol cars are ideal for those who live in towns and cities, where the diesel engine is not able to perform high operating temperature pollution-filter cleaning processes.

Diesel cars are more fuel-efficient overall, with generally higher levels of torque which make them hard-working. Sports and performance cars tend to be petrol-powered, and you have to (or just feel the need to) rev the engine hard, making for a sporty exhaust howl and exhilarating ride.

If you've never driven a diesel, you should at least try one. Many motorists say they'll never go back to petrol.

Hybrid models typically have a petrol engine, with an on-board system that either recoups lost energy or powers the vehicle over limited distances using electric motors.

Electric models are entirely powered by motors and batteries. The range of the cars is increasing at an astounding rate thanks to leaps in technology. You can charge an electric at public charging stations or at home using a standard plug. Electric cars are impressively torquey, making them great fun to zip around in.

Brand, warranty and features

Once you've nailed down the body and fuel type you want, you can start to think about the brands you like the look of. Many buyers make their decision based on how a car looks, which is important, but you should also ensure the vehicle has a decent warranty and features you like.


This is a big one – the reliability of a car is hugely important. As you're buying a used model, you can do a deep dive online and find out all the common problems a prospective model suffers. There will also be user reviews and readability studies/surveys available, so you can make an educated choice.

Why compare used car loans with Finder?

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More questions about getting used a car loane

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To make sure you get accurate and helpful information, this guide has been edited by Richard Whitten as part of our fact-checking process.
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Senior writer

Rebecca Pike is Finder's senior writer for money. She joined Finder after almost four years writing for business publications in the mortgage and finance industry, including three years as editor of Mortgage Professional Australia. She regularly appears as a money expert on programs like Sunrise and Today, as well as across radio and newspapers. She also holds ASIC-recognised certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products. See full bio

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40 Responses

    Default Gravatar
    SteveSeptember 28, 2018

    I am looking to secure a $50,000 car loan. I have been told that you can pay off lump sums without penalties with some finance companies, but I am a little skeptical of this. Please clarify.



      JeniOctober 1, 2018Finder

      Hi Steve,

      Thank you for getting in touch with finder.

      Repaying a car loan early without penalty is another common feature of variable rate car loans, however it is still best to check if you are able to make extra or lump sum repayments as well as if an early prepayment or early termination fee applies.

      I hope this helps.

      Please feel free to reach out to us if you have any other enquiries.

      Thank you and have a wonderful day!


    Default Gravatar
    JadeMarch 30, 2018

    I’m currently bankrupt and have gained casual employment and need a car am I able to apply for a loan somehow

      Default Gravatar
      JoelMarch 30, 2018

      Hi Jade,

      Thanks for leaving a question on Finder.

      You can get a loan if you are discharged bankrupt or even if you are currently bankrupt. You will be more limited in terms of the lenders you have to choose from, and the fees and rates will also be higher on bankrupt loans. You may also be required to attach an asset as security or apply with a guarantor. You may click the link above to find out about your loan options and see what you might be eligible for.

      You may click the name of the lender to be redirected to our review page and learn more about the lender’s loan offer, rates, and requirements as well as the pros and cons of using their loan service. When you are ready, you may then click on the “Go to site” button if available and you will be redirected to the lender’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.

      Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions.


    Default Gravatar
    jj93February 7, 2018

    I am a PhD student and am struggling to find a car loan as most places aren’t accepting of the scholarship as a wage – is there any places I should try applying for?

      MayMarch 1, 2018Finder

      Hi jj93,

      Thanks for your inquiry.

      When getting a car loan and you’re a student, it’ll be worth doing your homework on which lender would accept your form of income whether it be from casual work, permanent part-time work, or Centrelink payments. Not sure though for scholarship wages. Also when getting a student car loan, you may need to have a guarantor or co-borrower who can take on the legal and financial responsibility for the debt incurred with your car loan if you default or fail to make the repayments.

      While we can’t recommend a specific lender to you and are not sure of your approval, you may like to check the guide on student car loans. On the page, is a comparison table you can use to see which lender suits you.

      When you are ready, you may then click on the “Go to site” button and you will be redirected to the lender’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.

      Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions.


    Default Gravatar
    MichaelFebruary 7, 2018

    Hi Im looking at purchasing a 1986 Van for work, I have owned and operated a company since 2012.

    What is my most affordable options

      Default Gravatar
      AshFebruary 17, 2018

      Hi Michael,

      Thank you for reaching out to us.

      If you are looking for a used Van, you may refer to the above list of lenders that offer used car loans. If you’ve chosen a brand and you think you are eligible, please click on the ‘Go to site’ button to be redirected to the lender’s official site and apply from there. Otherwise, some other car loans you may consider and compare are on these pages:

      I would suggest that you review the features and details of the loan and the eligibility requirements and consider whether the loan is right for you. You can also contact the lender to discuss your options.

      I hope this helps.

      Please do not hesitate to reach out to us again if you have additional questions.


    Default Gravatar
    nurse31August 2, 2017

    i want to borrow enough to paid off my existing car loan and buy two more cars one for me and one for my fiance . The two of us will be making the repayments

      DeeAugust 3, 2017Finder

      Hi there,

      Thanks for your question.

      If you are looking to borrow jointly to pay for your existing car loan and to have extra money, you may compare joint account personal loans and find the best one for you.


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