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Compare Used Car Loans

A secondhand car is a great option that can help you save. Find out how you can finance your purchase.

A pre-owned vehicle can make a good choice if you need a first, or next car. You can get a good deal because you're not buying it brand new and there are can be more room to negotiate if it's a private sale. If you don't have the full amount ready to make your purchase, you have a range of financing options available to consider.

Read our used car loans guide below and find out all the options available to you.

Used Car Loan Offer

NRMA Used Car Loan


6.99 % p.a.

fixed rate


7.54 % p.a.

comparison rate

  • Low fixed interest rate
  • No ongoing fees
  • Borrow from $5,000
Security Logo

100% confidential application

Used Car Loan Offer

Apply for a NRMA Used Car Loan and enjoy a great low interest rate with no ongoing fee.

  • Interest rate from: 6.99% p.a.
  • Comparison rate: 7.54% p.a.
  • Interest rate type: Fixed
  • Application fee: $380
  • Minimum loan amount: $5,000
  • Maximum loan amount: $100,000
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Used car loan comparison

Rates last updated March 20th, 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
NRMA Used Car Loan
From 6.99% (fixed)
1 to 7 years
Finance a used car with NRMA and benefit from a fixed rate term and no monthly fees. Pre-approval available within 5 business hours.
People's Choice CU Secured Personal Loan
From 7.99% (fixed)
1 to 10 years
Benefit from a low rate when you secure the loan with a motor vehicle.
IMB Secured Personal Loan
6.89% (fixed)
1 to 5 years
All approved applicants can access this competitive rate and use the loan to finance a range of purposes. Loan amounts up to $60,000 available.
MyState Secured Personal Loan
From 7.99% (variable)
1 to 10 years
Apply for a loan up to $75,000 and benefit from loan terms up to 10 years. Your choice between secured or unsecured.
Heritage Bank Car Loan
From 8.99% (fixed)
1 to 7 years
Apply for up to $100,000 to finance a new or used car at a competitive fixed rate.
RACQ Used Car Loans
8.95% (fixed)
5 years
Benefit from a competitive fixed rate and a 21-day satisfaction guarantee when purchasing a used car. Note: Loan only available to QLD residents.
Heritage Bank Low Rate Secured Loan
From 5.14% (variable)
1 to 10 years
Have a Heritage Bank term deposit? Borrow up to the value of your deposit when you use it as security for this loan.
Latitude Personal Loan (Secured)
From 12.99% (fixed)
2 to 7 years
$250 (Loans under $4000 - $140)
Benefit from a tailored fixed rate from 12.99% p.a. to 28.99% p.a. with a loan that can be used for any purpose.
Freedom Finance Car Loan
From 5.1% (fixed)
1 to 5 years
If you meet all the requirements you could get access to a range of lenders to finance a new or used car up to 4 years.

Compare up to 4 providers

Compare these used car loans

  • Bank Australia Car Loan: 6.66% p.a. comparison rate. A car loan suitable for used vehicles that also offsets your carbon emissions.
  • NRMA Used Car Loan: 7.54% p.a. comparison rate. A used car loan with no monthly fees.
  • RACV Personal Loan: 8.04% p.a. comparison rate. A personal loan that allows you to finance a used vehicle up to 7 years old.
  • IMB secured personal loan: 7.24% p.a. comparison rate. A car loan with a competitive rate that allows you to finance a used vehicle up to 5 years old.

Your quick guide to used car loans

A used car loan is a loan is a financing option that can help you purchase a pre-owned vehicle. Lenders and financial institutions impose certain restrictions on the age of a vehicle in order to qualify for a loan amount. For example, some financial institutions only grant a loan for cars that are two to five years old.

Keep in mind that the interest rate on a used car loan is generally higher than on a new car loan as your the quality of the vehicle is less assured.

Used car loans are secured, so you'll need to provide details of the vehicle when you apply. The lender may be able to offer you pre-approval for the loan so you can secure the financing before you actually find your car. Once you've been approved for the loan, you agree to repay to repay it within a specified period known as a "loan term" or "term period".

This period varies between lenders but it's usually between one and seven years, or one and five years for fixed rate loans. You may be able to make additional payments during this time, and depending on the loan, you may be able to pay it off early without penalty. The lender may also give you access to a redraw facility to redraw your additional repayments. If no additional repayments are made, you pay off the loan by the specified due date.

How old a car can I finance with a used car loan?

If you want to use your used car as security for the loan, each brand has different criteria. Here are the age limits for some of the lenders you can compare in the table above:

LenderLoanMaximum age of carLoan amountFind out more
ANZANZ Online Secured Car Loan7 yearsFrom $7,500Details
Beyond BankLow Rate Car Loan6 yearsFrom $5,000Details
Beyond BankFlexi Car LoanOver 6 yearsFrom $5,000Details
CUAFixed Rate Car Loan7 yearsFrom $5,000Details
IMBSecured Personal Loan6 years$2,000 to $60,000Details
NRMANRMA Car LoanNo set limit$5,000 to $100,000Details
RACVRACV Car Loan10 years$5,000 to $100,000Details
St.GeorgeSecured Personal Loan12 years at loan expiry$3,000 to $80,000Details
SuncorpSecured Car Loan7 years$5,000 to $80,000Details
WestpacSecured Car Loan7 years$10,000 to $100,000Details

Can I get a used car loan cheaper than dealership finance?

If you've ever seen an ad for dealership finance, one thing you'll notice is the low-interest rates. Often as low as 2% p.a., these low-interest car finance deals can be tempting, but keep in mind low ongoing repayments do not automatically mean a cheaper loan. Take a look at the following features of both the loan and the dealership finance offer to find out which one is the better deal:

  • Interest rate. Dealership finance generally has lower interest rates, falling around the 2% p.a. mark, while car loans have rates around 6.5% - 13% p.a.
  • Residual payments. Car loans do not require any residual (balloon) payments but dealership finance deals will. These payments depend on the price of the car, but are usually a couple of thousand dollars at the very least. Dealership financiers usually make their money from people refinancing these payments.
  • The price of the car. If you get your financing from the same dealership as you get your car you need to consider whether it's affecting the price of your vehicle. Sometimes, dealerships offering good financing deals cannot give as good a deal on the price of your vehicle. It pays to negotiate the price before securing your finance.
  • Extras. This should not affect the price of the actual finance amount, but be wary of extras such as insurance of extended warranty offered with your finance deal. Consider what the value is of these offers.

Finding the right finance: Three steps to compare

Securing the right finance is as important as finding the right car. Some car loan terms extend up to seven years, so it can be with you a long time. Here's what to look at to find the right finance:

  1. Interest rate. The rate of interest offered by lenders should be the first thing you should consider when you plan to find a used car loan. Interest rates can be higher on used car loans compared to new car loans. Compare your options to find the most competitively priced and packaged loan.
  2. Fees. Lenders can charge a range of fees on used car loans. These include early termination fees, administration fees, loan management fee and many other fees. Keep these in mind and review all the fees you can and might be charged.
  3. Flexibility. Find out how flexible your loan can be. Can you make additional and lump-sum payments during your loan term? Are you able to repay your loan early without penalty? If you do make additional repayments, can you get these back using a redraw facility, and are there any restrictions regarding this facility?

The types of used car loans available to you

There are usually two types of used car loans, a secured loan and an unsecured used car loan.

  • Secured car loan. In the case of a secured car loan, you are required to offer your personal possession or asset, such as your car, as a security to the lenders. One of the main advantages of secured car loan is that you are required to pay a lower rate of interest because your car works as a collateral against the loan amount. However, it's important to always read the terms and conditions to see if you can use your used car as collateral, as some lenders often have restrictions to this.
  • Unsecured car loan. An unsecured car loan is a loan against which no asset is offered as a security. Instead, you can qualify for a loan by showing the details of your savings or the details of your previous loan that you paid off successfully. You can also qualify for the loan if you show your credit card repayment details. You are required to pay a higher rate of interest on unsecured used car loans as compared to interest rates on secured loans because no asset is provided as a collateral to lenders. However, it comes with an advantage because a borrower does not have any fear of losing his asset if he is unable to meet the repayment requirements.
  • Home equity finance. If you've accumulated enough equity in your home loan, some lenders will allow you to access that equity. You can then use these funds to purchase your used car. Some lenders will also let you borrow more so you can repay your loan at the same interest rate as your home loan.
  • Dealership finance. When you're shopping for a car you will see a lot of dealership financed deals advertised and they are another option to consider. This financing works by you paying low interest and repayments for the majority of your term and then a balloon payment, usually a few thousand dollars, at the end of the term. Make sure you find out all the details of the finance before you apply.

What are the benefits and drawbacks to consider?

  • You can get a great price on a used car by negotiating in a private sale or at a dealership
  • You have various financing options to consider – secured and unsecured.
  • Used car financing can be more expensive and restrictive than financing for new cars
  • The age of the used car affects its resale value – you can make a loss if the car sells at an amount less than the loan

Is there anything you should avoid with used car loans?

  • Whenever you apply for a used car loan, it is important to read all the terms and conditions. There may be restrictions on the vehicle or the loan that you were not aware of that will make it unsuitable for you, and its up to you to review all this before you sign on the dotted line. It's also important you are aware of all fees and charges that may and may not apply to your account.

A used car can be a better option when you're looking for your next set of wheels – make sure you get the right financing.

* The offers compared on this page are chosen from a range of products finder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing products.

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.

Stratton Finance New Car Loan

Benefit from a car broker with over 25 years experience

NRMA New Car Loan

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.

RACV New Car Loans

A competitive rate car loan from RACV with no monthly fees and 5-hour loan approval.

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36 Responses

  1. 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?

    • Staff
      MayMarch 1, 2018Staff

      Hi jj93,

      Thanks for your inquiry.

      When getting a car loan and you’re a student, it be work doing your home work 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 this page.


  2. 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

    • Staff
      AshFebruary 17, 2018Staff

      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:

      “Best Car Loans”
      New Car Loans
      Car Loans
      Low-Interest Car Loans

      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.


  3. 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

    • Staff
      LouAugust 3, 2017Staff

      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 here.


  4. Default Gravatar
    PiousMay 2, 2017


    i would like to buy a used car and my budget is two lakhs.
    so please advise me about the loan and how much i can get and what will be the interest.

    Anticipating your replay,

    • Staff
      LouMay 2, 2017Staff

      HI Pious,

      Thanks for your question.

      Unfortunately, the loan products we have listed on our page are only available to Australian residents.

      You may have to directly contact a local lender for your borrowing needs.


  5. Default Gravatar
    PatriciaMarch 26, 2017

    Can a 457 visa holder who just arrived in Australia get a second hand car financing? If yes, what should be the requirements?

    • Staff
      MayMarch 27, 2017Staff

      Hi Patricia,

      Thank you for your inquiry.

      On this page, you would find our guide on getting a personal loan if you are on a visa. Please review the criteria, details of the loan product and contact the lender directly to discuss your loan options and eligibility.


  6. Default Gravatar
    DraganFebruary 6, 2017

    Any recommendations for a car load for some on centrelink benefits? Credit rating is good and there are no defaults or similar. Never been bankrupt or anything like that

    • Staff
      LouFebruary 6, 2017Staff

      Hi Dragan,

      Thanks for your question.

      Kindly note that we are a financial comparison and information website and we are unable to recommend specific products or services to our users.

      In the page above, you can take advantage of the loan calculator to see which loan product can give you low monthly repayments. Before clicking the ‘go to site’ button to submit an application, be sure to read the eligibility criteria and requirements needed by clicking the name of the loan on the table.


  7. Default Gravatar
    TeresaAugust 18, 2016

    Hi my name is Teresa I’m trying to get another car or ford wheels I’m on a pension I have now $700 put away for a car can anyone help me

    • Staff
      ElizabethAugust 18, 2016Staff

      Hi Teresa,

      You can find a full list of loans available to those on the pension on this page.

      I hope this will help,


  8. Default Gravatar
    RodrigoAugust 10, 2016


    Currently I have on going loan with Macquarie finance and interest rate is around 12% p.a with 3 years remaining. Balance amount is $26k.
    My monthly payment is $780.
    I want to change for lower interest so I’m planning to refinance. To do that I was asked to pay a cancellation fee.
    Would you know what is the average penalty fee in the market for comparison?

    • Staff
      ElizabethAugust 10, 2016Staff

      Hi Rodrigo,

      You can check a list of early repayment fees for lenders on this page.

      Hope this helps,


  9. Default Gravatar
    July 23, 2016


    Currently I have on going loan with Macquarie finance and interest rate is 10.45% p.a with 2 years remaining. Balance amount is $20k.

    Is there any chances that I can have lower interest rate and some additional saving after factoring in settling of contract exist fees and new application fees?

    My fortnightly payment is $414.

    • Staff
      MattJuly 25, 2016Staff

      Hi Alberto,

      Thanks for your comment. If you are looking to lower your repayments you could perhaps consider refinancing your car loan.

      You can compare a range of refinancing car loans here.

      Hope this helps.


  10. Default Gravatar
    KateJuly 21, 2016

    With these used car loans will I be required to get fully comprehensive car insurance

    • Staff
      ElizabethJuly 22, 2016Staff

      Hi Kate,

      You’ll only need CTP insurance no matter what kind of car you buy (new or used). However, you can still consider comprehensive insurance if you feel it will be a better option for you – you can compare comprehensive insurance policies here.

      I hope this helps,


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