We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
Variable rate car loan comparison
- St.George Secured Personal Loan - Variable Rate: 13.81% p.a. comparison rate. Apply for up to $80,000.
- BankSA Unsecured Variable Rate Personal Loan: 14.06% p.a. comparison rate. Apply for up to $50,000.
- MyState Secured personal Loan: 8.96% p.a. comparison rate. Apply for up to $75,000.
What is a variable rate car loan?
A variable rate car loan has a variable rate of interest, so your repayments may fluctuate if the market interest rates change.
This means your interest rate may increase or decrease.
However, your loan also comes with increased repayment flexibility when compared to fixed rate loan.
What are the different types of car loans with a variable rate?
When it comes to car loans with variable rates, there are two main loan types:
- Unsecured car loans.
With unsecured car loans, the lender does not require a guarantee. In the event that you are unable to repay the loan, the lender does not have any right to take your assets. Interest rates tend to be higher on unsecured loans.
- Secured car loans.
This type of loan requires a vehicle as a guarantee in order to be approved for the loan. If you default on your repayments the lender has the right to sell the guaranteed asset in order to reclaim their losses.
Questions to ask when you compare variable rate car loans
Considering the following factors can help you compare your variable rate loan options and find the right one for you:
- What interest rate will you be charged?
Even though the rate is variable, looking at the rate that applies to the loan when you're comparing will give you an idea of the competitiveness of the product.
- What fees comes with the loan?
Look for upfront fees such as loan establishment fees as well as ongoing fees such as monthly and annual fees.
- Can you make additional repayments?
Variable rate loans tend to be more flexible in terms of allowing additional repayments, so check if you are able to make extra or lump sum repayments.
- Can you repay the loan early without penalty?
This is another common feature of variable rate loans; check if an early prepayment or early termination fee applies.
Things to be careful with variable car loans
- When taking out a variable car loan try to avoid long term loans. The longer you stay paying out variable rate car loan, the higher the risk of the interest rates going up. If you do take out longer loan terms opt for a loan that does not charge you for early repayments.
- If you are taking out a loan with a dealership, make sure that the interest rate isn’t higher than average. It is crucial to ensure you do a comparison before committing to anything with them. Ask the dealer about fees, charges, balloon payments and the comparison rate.
- If your application for a car loan has been declined a by lender, it may be a good idea to wait a few months before applying again. More applications will look bad on your credit history. You can use the services of a car loan broker beforehand to maximise your chances of approval.
Questions you've asked about variable rate car loans
Where can I conduct a comparison of Australian car loans?
You can start your comparison of variable rate car loans on this page. You can also see our car loan comparison, we’ve also included a guide as to how to compare them. Remember to compare loans side by side to see how each one stacks up.
Can you refinance car loans?
Yes. To learn more about this process, have a read of our refinancing car loans guide. You can also refinance a balloon payment if your finance has this option. Keep in mind that this can mean you end up paying more in interest over the extended period of time.
Do you have a car loan calculator I can use?
Yes. You can use a personal loan calculator that can help you estimate the amount your loan will cost.
Can I switch from a variable rate loan to a fixed rate?
You'll need to refinance your existing loan to be able to switch the type of interest.
More guides on Finder
Mercedes-Benz G-Class luxury car insurance
Find out about how to insure the luxury Mercedes-AMG G 63 4x4 SUV.
UCapital Unsecured Business Loan
A UCapital unsecured business loan can provide up to $300,000 without security, with repayment terms between 3 and 12 months.
Finder’s RBA cash rate survey: 89% of experts support axing stamp duty nationally
An annual land tax should replace the one-off financial sledgehammer of stamp duty on property purchases, say experts. All experts (40/40) participating in Finder's RBA cash rate survey are predicting a cash rate hold this December.
Firefighters Mutual Bank Credit Card
This low rate credit card has a $0 annual fee and is available to firefighters and other service workers or volunteers.
Citibank Ready Credit
The Citibank Ready Credit unsecured revolving line of credit is available with a 3-year introductory rate of 5.9% p.a. on balance transfers.
Best smart TVs in Australia
Choose the right TV to meet your streaming, free to air and picture quality needs with our round-up of the best smart TVs for any budget.
Health Professionals Bank Credit Card
Get an introductory rate of 7.9% p.a. on purchases and balance transfers for 6 months and save with an ongoing $0 annual fee with the Health Professionals Bank Credit Card.
Commonwealth Bank Neo card
A new type of credit card to the Australian market, the CommBank Neo doesn’t charge any interest but has a monthly fee instead. Find out more in our comprehensive review.
loans.com.au Smart Booster Variable Investor Bundle
The Smart Booster Variable Investor Bundle from loans.com.au is a discount variable rate investment loan for borrowers who have a home loan with the same lender.
Alex Personal Loan review
Alex is a neobank lender specialising in personalised rate personal loans. Find out more about Alex's personal loans and what fees and features are involved.
Car Loan OffersImportant Information*
You'll receive a fixed rate of 4.99% p.a.
A low minimum borrowing amount of $2,000 that you can use to purchase a new car or one up to two years old.
You'll receive a fixed rate of 4.69% p.a.
Take advantage of a competitive rate, pre-approval and no early repayment fees when you finance a car under two years old.
You'll receive a fixed rate from 4.99% 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.
You'll receive a fixed rate of 4.99% p.a.
Purchase a new or used car up to 2 years old and benefit from a fixed rate and no monthly fees. Pre-approval available within 5 business hours.
Ask an Expert