Compare Used Car Loans

Information verified correct on April 30th, 2017

woman in used carA 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.

Car Loan Offer

RACV Car Loans

from

7.99 % p.a.

fixed rate

from

8.53 % p.a.

comparison rate

  • Low fixed interest rate
  • No ongoing fees
  • Borrow from $15,000
Security Logo

100% confidential application

Car Loan Offer

Apply for an RACV Car Loan for purchasing a car and enjoy a great fixed interest rate.

  • Interest rate from: 7.99% p.a.
  • Comparison rate: 8.53% p.a.
  • Interest rate type: Fixed
  • Application fee: $378
  • Minimum loan amount: $15,000
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Used car loan rate comparison

$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Application Fee Monthly Repayment Product Description
RACV Car Loans
From 7.99% (fixed)
8.53%
$15,000
1 to 7 years
$378
Enjoy this fixed rate new car loan offer from RACV. No ongoing fees.
CUA Fixed Rate Car Loan
From 6.79% (fixed)
6.92%
$15,000
1 to 7 years
$0
A competitive car loan that offers flexible repayment options and no account keeping fees.
Latitude Personal Loan (Secured)
From 12.99% (fixed)
14.2%
$3,000
2 to 7 years
$250 (Loans under $4000 - $140)
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.
St.George Secured Personal Loan - Fixed Rate
From 8.49% (fixed)
9.39%
$3,000
1 to 5 years
$195
Get behind the wheel of your perfect car with a competitive interest rate from St.George. Get an application response within 60 seconds.
St.George Secured Personal Loan - Variable Rate
From 12.74% (variable)
13.62%
$3,000
1 to 7 years
$195
A lower interest rate personal loan with flexible repayment options.

Compare up to 4 providers

The finder.com.au list of best used car loans

Compare the features of the car loans below before applying.

Car LoanFeatures
Buy your next used car with a loan from CUA
Flexible repayment options for your next used car
Get a used card with a Natloans Car Loan - bad credit accessible.

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 Loan2-7 yearsFrom $1,000Details
IMBSecured Personal Loan6 years$2,000 to $60,000Details
NRMANRMA Car LoanNo set limit$15,000 to $100,000Details
RACVRACV Car Loan10 years$15,000 to $100,000Details
St.GeorgeSecured Personal Loan12 years at loan expiry$3,000 to $80,000Details
SuncorpSecured Car Loan12 years at loan expiry$5,000 to $80,000Details
WestpacSecured Car Loan7 years$10,000 to $100,000Details

Can I get a 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 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?

  • 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.

CUA Fixed Rate Car Loan

A competitive car loan that offers flexible repayment options and no account keeping fees.

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.

RACV Car Loans

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

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28 Responses to Compare Used Car Loans

  1. Default Gravatar
    Patricia | March 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
      May | March 27, 2017

      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.

      Cheers,
      May

  2. Default Gravatar
    Dragan | February 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
      Anndy | February 6, 2017

      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.

      Cheers,
      Anndy

  3. Default Gravatar
    Teresa | August 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
      Elizabeth | August 18, 2016

      Hi Teresa,

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

      I hope this will help,

      Elizabeth

  4. Default Gravatar
    Rodrigo | August 10, 2016

    Hi

    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
      Elizabeth | August 10, 2016

      Hi Rodrigo,

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

      Hope this helps,

      Elizabeth

  5. Default Gravatar
    | July 23, 2016

    Hi

    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
      Matt | July 25, 2016

      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.

      Cheers
      Matt

  6. Default Gravatar
    Kate | July 21, 2016

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

    • Staff
      Elizabeth | July 22, 2016

      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,

      Elizabeth

  7. Default Gravatar
    Paul | May 10, 2016

    Looking for a loan for a used car but I have had a Part 9. I have no debts apart from a mortgage.

    • Staff
      Elizabeth | May 11, 2016

      Hi Paul,

      You can find a list of options for current and discharged bankrupts, including those that have had a Part 9 agreement, on this page.

      I hope this will help,

      Elizabeth

  8. Default Gravatar
    Wilfred | May 3, 2016

    I have no refinance in any car dealers, but I really want one for my school transport, but I’m not in Australia and I’m not an Australian citizen, iam a PNG boy looking for help to buy a car, I need your help please, can someone there help me please?

    • Staff
      Elizabeth | May 3, 2016

      Hi Wilfred,

      Unfortunately, as an Australian financial comparison service we only allow you to compare lenders that consider loans for people currently residing in Australia. You’ll need to find a lender in Papua New Guinea if you’re looking for a used car loan.

      Sorry I couldn’t be of more assistance,

      Elizabeth

  9. Default Gravatar
    Julie | January 27, 2016

    Do any banks, building society give loans to single parent pensioners
    As I need to pay out old loan and borrow money to buy a bigger car need a 7 seater

    • Staff
      Elizabeth | January 27, 2016

      Hu Julie,

      You can find a list of banks and lenders that consider pensioners for loans on this page. Keep in mind that minimum eligibility criteria will apply. You can click on the name of the bank to find out more information of the loan’s on offer.

      I hope this will help.

      Thanks,

      Elizabeth

  10. Default Gravatar
    SREE | March 15, 2015

    HI, I already have a car loan with another bank. Is that possible to refinance it with lower interest rates?

    • Staff
      Shirley | March 16, 2015

      Hi Sree,

      Thanks for your question.

      Typically it is possible to refinance your current car loan with another that has a lower interest rate, though you need to assess whether the fees applicable is less than the savings you currently make.

      Our car loan refinancing article can help provide more information on the process

      Cheers,
      Shirley

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