New Car
to 18.99%
to 21.78%
To help more Australians find the best car loan our money experts analyse 64 car loans every month using a data-driven methodology. This takes into account both car loan fees and interest rates: the lower the better.
To ensure our picks are useful for more borrowers we've created 4 categories:
All our car loan picks come from lenders which have a commercial partnership with Finder. While these are some of the market's most competitive rates there may be more suitable loans on the market for you.
If the car loans we've picked aren't what you're looking for, you can find a better car loan yourself with these simple steps.
The car loan rate you'll actually get depends on your individual credit score and financial circumstances.
This means the best car loans go to borrowers with high credit scores and minimal debts. Before applying for a car loan it's a good idea to check your credit score.
You can get a better car loan rate by improving your credit score before you apply.
Find a better car loan in 5 simple steps.
Car loan interest rates vary quite a lot. You could get a loan with an 8.00% interest rate or one with a 4.00% rate. It depends on both the loan and your own circumstances. That lower rate makes a huge difference in your repayments, saving you hundreds of dollars a month and thousands over the life of the loan.
Loan | A | B |
---|---|---|
Loan amount | $25,000 | $25,000 |
Interest rate | 4.23% | 6.50% |
Application fee | $300 | $600 |
Monthly fees | $0 | $8 |
Loan term | 4 years | 4 years |
Monthly repayments (including fees) | $567.05 | $600.87 |
Total loan costs (including fees) | $27,519 | $29,442 |
Savings | $1,923 cheaper | N/A |
Over 4 years, Loan A would save you almost $2,000 in interest charges and fees.
The lowest rate won't help you if you can't use the loan to buy the car you want. Secured car loans use your car as the loan's security. This means you can get a lower interest rate.
These are ideal for new cars. Lenders won't take an older car as security because it won't hold its value.
If you are buying an older car the best car loan for you is probably an unsecured car loan. You'll have a higher rate, but the loan will be more flexible and let you buy a used car more easily.
The longer it takes to pay off a car loan the more interest you pay. A flexible loan that lets you make extra repayments means you can get out of debt faster. If you can afford it, you could even pay off the loan in one go.
But not every car loan lets you do this. And some charge fees for making extra repayments.
The fees that come with your loan can make a big difference to how much you end up paying. Car loans can have several fees, including monthly service fees and one-off application fees.
Fees don't have to be a deal-breaker, but be sure to factor them in when comparing costs.
Car loan terms are often flexible and can last for 1 to 7 years. A shorter loan term means larger monthly repayments. But you pay less interest because you get out of debt faster.
A longer loan term means lower monthly repayments but more interest in the long term. So finding the best car loan term is about striking a balance between affordable monthly repayments and a reasonable repayment term that doesn't cost you too much in interest.
Amount borrowed | Loan Term | Interest paid | Difference |
---|---|---|---|
$30,000 | 3 years | $2,369 | |
$30,000 | 5 years | $3,968 | +$1,599 |
$30,000 | 7 years | $5,617 | +$3,248 |
The best car loan can look different for every borrower. And lenders change their rates and fees all the time. That's why we review our best car loan picks every month.
Different types of lenders have different benefits and drawbacks too.
Westpac and the Commonwealth Bank currently have the best car loan rates among the Big Four banks.
Bank | Interest rate from | Comparison rate from |
---|---|---|
ANZ Fixed Rate Personal Loan | 7.49% p.a. | 8.18% p.a. |
CommBank Secured Car Loan | 6.49% p.a. | 7.9% p.a. |
NAB Fixed Rate Personal Loan for a Car | 6.99% p.a. | 7.91% p.a. |
Westpac Car Loan | 5.99% p.a. | 7.2% p.a. |
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