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Compare Car Loans - Australia

Use our comparison tables to find the right car loan deal for you. Whether it's a new or used car loan that you are looking for Savrr has the comparison tools to aid your search.

Savrr.com is a trading name of Fair Comparison Pty Ltd. Comparison is powered by Fair Comparison Pty Ltd who don’t compare all providers in the market, or all products of those compared. Fair Comparison does not provide credit assistance or advice and may receive a fee if you click on, apply, or are approved, for a product.

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Advertiser DisclosureProduct Image For OurMoneyMarket - New & Used Car Loan - Secured | Fixed | No Vehicle Age Limit

OurMoneyMarket - New & Used Car Loan - Secured | Fixed | No Vehicle Age Limit

Advertised Rate

From 6.57% p.a. to 18.99% p.a.
Fixed

Comparison Rate

From 7.19% p.a. to 21.78% p.a.
A comparison rate of 7.19% p.a. and an advertised rate of 6.57% p.a. The loan type will be Secured.
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Showing personal loans based on borrowing $20,000 over 3 years, showing both secured and unsecured loans, with fixed and variable interest rates
  • Default
  • Comparison Rate
  • Advertised Rate
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Years

Savrr.com is a trading name of Fair Comparison Pty Ltd. Fair Comparison compares loan products from a range of banks and other financial or credit product providers and does not compare all products in the market or all product features. To filter the results, you will need to enter some basic information which will generate a comparison of products that fall within those parameters. The default ordering of products is based on the Comparison Rate. Fair Comparison do not take into account your objectives, financial situation or needs, or provide advice, assistance, or recommendations.

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Product Image For OurMoneyMarket - New & Used Car Loan - Secured | Fixed | No Vehicle Age Limit

OurMoneyMarket - New & Used Car Loan

Secured | Fixed | No Vehicle Age Limit

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Advertised Rate

From 6.57% p.a. to 18.99% p.a.
Fixed

Comparison Rate

From 7.19% p.a. to 21.78% p.a.

Loan Term

1 to 7
years

Monthly Repayment

$613.62
36 months

Total

$22,090.23
including $2,090.23 interest

Establishment Fee

From $250
one off

Loan Service Fee

$0
per month

Early Repayment Fee

$0
per event
A comparison rate of 7.19% p.a. and an advertised rate of 6.57% p.a. The loan type will be Secured.
Product Image For Unity Bank - Fixed Car Loan - Secured | Fixed | New or used cars up to 7 years old

Unity Bank - Fixed Car Loan

Secured | Fixed | New or used cars up to 7 years old

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Advertised Rate

5.99% p.a.
Fixed

Comparison Rate

6.34% p.a.

Loan Term

1 to 10
years

Monthly Repayment

$608.35
36 months

Total

$21,900.53
including $1,900.53 interest

Establishment Fee

$250
one off

Loan Service Fee

$0
per month

Early Repayment Fee

$0
per event
A comparison rate of 6.34% p.a. and an advertised rate of 5.99% p.a.. The loan type will be Secured.
Product Image For Great Southern Bank - Green Car Loan - Secured | Fixed

Great Southern Bank - Green Car Loan

Secured | Fixed

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Advertised Rate

From 5.99% p.a. to 14.29% p.a.
Fixed

Comparison Rate

From 6.44% p.a. to 14.78% p.a.

Loan Term

1 to 7
years

Monthly Repayment

$608.35
36 months

Total

$21,900.53
including $1,900.53 interest

Establishment Fee

$225
one off

Loan Service Fee

$0
per month

Early Repayment Fee

$0
per event
A Secured loan with an advertised rate of 5.99% p.a. and comparison rate of 6.44% p.a.
Product Image For Harmoney - Car Loan - Secured | Fixed

Harmoney - Car Loan

Secured | Fixed

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Advertised Rate

From 5.66% p.a. to 20.07% p.a.
Fixed

Comparison Rate

From 6.45% p.a. to 20.98% p.a.

Loan Term

3 to 7
years

Monthly Repayment

$605.36
36 months

Total

$21,793.05
including $1,793.05 interest

Establishment Fee

$275 to $575
one off

Loan Service Fee

$0
per month

Early Repayment Fee

$0
per event
A Secured loan with an advertised rate of 5.66% p.a. and comparison rate of 6.45% p.a.
Product Image For Australian Mutual Bank - Green Car Loan - Secured | Variable | Cars up to 5 years old

Australian Mutual Bank - Green Car Loan

Secured | Variable | Cars up to 5 years old

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Advertised Rate

6.45% p.a.
Variable

Comparison Rate

6.45% p.a.

Loan Term

1 to 7
years

Monthly Repayment

$612.53
36 months

Total

$22,050.90
including $2,050.90 interest

Establishment Fee

$0
one off

Loan Service Fee

$0
per month

Early Repayment Fee

N/A
A Secured loan with an advertised rate of 6.45% p.a. and comparison rate of 6.45% p.a.
Product Image For MOVE Bank - New Car Loan - Fixed Rate - Secured | Fixed | Vehicle up to 3 years old

MOVE Bank - New Car Loan - Fixed Rate

Secured | Fixed | Vehicle up to 3 years old

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Advertised Rate

6.45% p.a.
Fixed

Comparison Rate

6.72% p.a.

Loan Term

1 to 7
years

Monthly Repayment

$612.53
36 months

Total

$22,050.90
including $2,050.90 interest

Establishment Fee

$195
one off

Loan Service Fee

$0
per month

Early Repayment Fee

$0
per event
The loan type will be Secured with a comparison rate of 6.72% p.a. and an advertised rate of 6.45% p.a.
Product Image For Newcastle Permanent Building Society - Car Loan - Secured | Fixed | New or used car

Newcastle Permanent Building Society - Car Loan

Secured | Fixed | New or used car

Go To SiteMore Details

Advertised Rate

6.49% p.a.
Fixed

Comparison Rate

6.84% p.a.

Loan Term

1 to 7
years

Monthly Repayment

$612.89
36 months

Total

$22,064.01
including $2,064.01 interest

Establishment Fee

$250
one off

Loan Service Fee

$0
per month

Early Repayment Fee

$0
per event
A Secured loan with an advertised rate from 6.49% p.a. and comparison rate from 6.84% p.a.
Product Image For Moneyplace - New Car Loan (Excellent credit) - Secured | Fixed

Moneyplace - New Car Loan (Excellent credit)

Secured | Fixed

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Advertised Rate

6.52% p.a.
Fixed

Comparison Rate

6.95% p.a.

Loan Term

3 to 7
years

Monthly Repayment

$613.16
36 months

Total

$22,073.84
including $2,073.84 interest

Establishment Fee

$310 to $1,035
one off

Loan Service Fee

$0
per month

Early Repayment Fee

$0
per event
A Secured loan with an advertised rate from 6.52% p.a. and comparison rate from 6.95% p.a.
Product Image For Driva - Car Loan - Secured | Fixed

Driva - Car Loan

Secured | Fixed

Go To SiteMore Details

Advertised Rate

From 6.99% p.a. to 27% p.a.
Fixed

Comparison Rate

From 6.99% p.a. to 30.72% p.a.

Loan Term

2 to 7
years

Monthly Repayment

$617.45
36 months

Total

$22,228.22
including $2,228.22 interest

Establishment Fee

N/A

Loan Service Fee

N/A

Early Repayment Fee

$0
per event
A Secured loan with an advertised rate from 6.99% p.a. and comparison rate from 6.99% p.a.
Product Image For Moneyplace - Used Car Loan (Excellent credit) - Secured | Fixed

Moneyplace - Used Car Loan (Excellent credit)

Secured | Fixed

Go To SiteMore Details

Advertised Rate

6.66% p.a.
Fixed

Comparison Rate

7.09% p.a.

Loan Term

3 to 7
years

Monthly Repayment

$614.44
36 months

Total

$22,119.75
including $2,119.75 interest

Establishment Fee

$310 to $1,035
one off

Loan Service Fee

$0
per month

Early Repayment Fee

$0
per event
A Secured loan with an advertised rate from 6.66% p.a. and comparison rate from 7.09% p.a.

Car Loan Guide

So, you want to buy a car. It shouldn’t be that hard, should it? But all that jargon can make getting car finance confusing. Your time would be far better spent choosing your awesome new ride instead of tearing your hair out over finance.

That’s why we put together this guide — to help you compare car loans, which could help you select one that suits your needs.

What is a car loan?

A car loan is a type of loan that provides credit specifically for buying a car or other vehicle. A car is generally not the only thing you could buy with a car loan. You could potentially buy a van, truck, motorbike or ute. And you could buy a new or used vehicle with a car loan.

Car loans may be granted to individuals and businesses. As with any other kind of loan, you have to repay the credit with interest, plus any fees.

salesperson-on-the-open-car-ground-2021-09-02-08-53-22-utc
Could a car loan help you buy your next vehicle?

Types of car loans

Unlike with home loans and some other kinds of personal and business loans, there can be many types of finance options that you can use to buy a vehicle, which all get lumped under the term ‘car loan’, including:

  • Standard loan

    With a standard loan, a financial institution will give you the money you need to buy the car you want and any other costs you’ll need to pay (such as on-road costs). Secured and unsecured car loans are both available, though secured loans are more common. If you get a secured car loan, the car will be the security, and your lender will generally ensure the car is worth enough to cover your loan by making you get insurance for it. That way, if you were to crash your car and not repay your loan, your lender would be able to recover the money through an insurance payout.

  • Dealer finance

    Dealer finance is almost identical to a standard loan except that the dealer organises the loan for you, usually with their partner lender. Getting a car loan through your car dealer can streamline the process, but it could end up costing you more if the dealer adds a fee or doesn’t find a suitable loan for your situation.

  • Commercial hire purchase

    When you buy a car through a commercial hire purchase arrangement, someone else buys the car, or pays part of the purchase price, and then hires it out to you while you pay them the amount of money they contributed to the purchase plus interest. This type of finance can be very flexible as you can use it to pay the whole price of the car, a deposit or a lump sum payment at the end of another kind of loan’s term.

  • Finance lease

    A finance lease seems, at first glance, to be similar to a commercial hire purchase because it works by having someone else buy the car. But instead of you then paying the purchaser back, you merely lease the car. At the end of the lease, you don’t own the car. Instead, you have the choice of refinancing the car, returning it to the owner, selling it or buying it off the owner.

  • Novated lease

    A novated lease is similar to a finance lease arrangement except that the person who buys the car deducts the payments from your wage before tax is deducted in a salary sacrifice arrangement. At the end of the lease, you generally have the option of buying the car if you’d like.

  • Operating lease

    An operating lease is similar to a finance lease arrangement. The main difference is that the latter arrangement holds the motorist responsible for maintaining the vehicle. With an operating lease, the motorist doesn’t take on the additional costs associated with ownership of the car.

  • Chattel mortgage

    A chattel mortgage is similar to a secured loan except that it is only eligible for assets that are primarily used for business - for example, a tradie who needs a work ute. And, that means it’s not covered by the National Consumer Credit Protection Act. There are two main consequences of that; you might not have to prove you have sufficient income to repay the loan; and there’s no requirement for the loan terms and conditions to clearly include all fees and charges (including any early payout penalty).

Features of a car loan

Car loans are much like any other personal loan. They have a set loan period, interest rates and other fees and charges. Many allow extra repayments, which means you can pay extra amounts in between your compulsory repayments and therefore repay your loan sooner. Some also offer redraw facilities, which enable you to take back some of the money you’ve repaid if you have unexpected expenses. The main difference is that they’re specifically granted to buy a vehicle.

The most unique feature of a car loan is something called a balloon payment or residual payment.

at-a-car-dealership-buying-a-car-2021-11-12-21-01-34-utc
Consider what features are important to you when taking out a car loan.

Balloon payments

Loans that offer balloon payments mostly work just like any other car loan. You pay off the loan gradually over time with regular repayments, but at the end, you pay a final amount as a lump sum.

Balloon payments reduce the earlier monthly payments, which can ease the repayment burden earlier on but can increase the total cost of the loan because interest is charged on the total balance. It’s also important you understand that loans that include a mandatory balloon payment will require you to make that balloon payment by a specific date. If you can’t make the lump sum payment by that date, you may risk having to take out another loan just to pay the balloon payment.

Secured vs unsecured loans

When you take out any kind of loan, your lender will assess your ability to repay the debt. The lender’s research into your financial history and situation can affect whether it will approve the loan, the amount you can borrow and the interest rate you’ll have to pay.

One way to increase the chance your loan will be approved and potentially reduce the interest rate is to promise your lender that it can sell something you own if you can’t afford to repay the loan. That asset is collateral and acts as security for the loan. Such a loan is therefore called a secured loan.

If you don’t provide any collateral, the loan is called an unsecured loan.

Because car loans are granted specifically to allow you to buy a car (or other vehicle), many are secured loans that enable the lender to sell your car if you can’t repay the loan.

Fixed vs variable rate car loans

The Reserve Bank of Australia (RBA) has a meeting once a month (except in January) at which it sets the official cash rate. That cash rate helps determine how much financial institutions, such as banks and other lenders, set their interest rates at. Generally the interest rate you are charged is above the cash rate, because there are a range of other factors which can also impact the cost of lending money.

Because the cash rate and the cost of lending money can change regularly, a variable rate loan is the type of loan where the lender can change the interest rate at any time to reflect these changes.

Lenders do also offer a kind of loan that has a set interest rate that doesn’t change over the life of the loan. That kind of loan is called a fixed rate loan.

Car loans can either have fixed or variable interest rates. Depending on the market conditions, fixed rate car loans may have a different interest rate than their equivalent variable rate car loans.

Additional cost considerations

As with all loans, the interest rate is not the only thing you’ll need to consider when comparing the various options open to you. Some car loans may have an application fee, monthly or annual fees, early repayment fees, extra repayment caps, late payment fees and other fees that aren’t obvious at a glance.

The one additional cost consideration that’s unique to car loans is that many lenders may only offer loans for cars or other vehicles that are younger than a certain age. The maximum age varies between lenders. It’s usually no older than 20 years but many lenders can cap the age at around seven to 12 years old. So, if you’re looking for a loan for an older car, your choice of loans may be reduced.

millennial-white-couple-on-a-road-trip-driving-in-2022-02-08-22-39-28-utc
Check if a balloon payment would apply to your car loan.

How to apply for a car loan

Applying for a car loan is fairly straightforward. You’ll need to fill in an application form and provide details of your personal and financial situation, so your prospective lender can assess whether you’ll be able to repay the loan. Most banks have online applications, so you can preview the form. Other kinds of lenders may have an online application, but paper forms are still around in some sectors.

Most applications will ask you to provide the following details:

  • Your income
  • Whether you have any other debts
  • Your other expenses
  • Whether you’re single or have a partner
  • Whether you’re borrowing by yourself or with someone else
  • Whether you have any children or other dependents

When assessing your application, most lenders will also look up your credit history and credit score. Your credit score is a number that indicates how trustworthy you are when it comes to repaying debt. There are a range of sites available which allow you to check your credit score, just check the terms of the site before you use it.

Find out how much you could borrow

Your credit score is one factor which could help you get a sense of whether a lender might be willing to give you a car loan. Car loan calculators can be a useful tool to help get an estimate of how much you might be able to borrow.

What is the best car loan?

You can probably see now why there’s no single best car loan. Every option has advantages and disadvantages, which have different impacts on each of us. With that in mind, one way to find a suitable loan is by comparing a range of options available. Here’s a great way to do that.

How to compare car loans 

First things first. Answer these general questions:

  • Why do you want the loan?
  • How much do you want to borrow?
  • How will you repay the loan?
  • How much can you afford to pay each month to repay your loan?
  • Is the amount you can afford to pay likely to change during the loan term?
  • Do you think interest rates are likely to go up, stay the same or go down?
  • Over what period do you think interest rates will perform in that way?

Suggested questions to ask when comparing car loans

  • What is the interest rate?
  • Is the interest rate fixed or variable?
  • What other regular fees will you be charged?
  • Is there an early repayment fee?
  • What is the late payment fee?
  • Are there any other ad-hoc fees?
  • What’s the minimum loan amount?
  • Does the lender offer or require a balloon payment?
  • Does the lender offer any perks? (E.g. the flexibility to redraw repaid funds)
  • Based on how much you want to borrow, how much you can repay each month, the fees and interest rate, what is the total amount payable to the lender over the term of the loan (the total cost of the loan)?
  • How does the bank or lender that’s offering the loan align with your personal values?

To find out exactly how much you can borrow, you’ll need to contact the financial institution that offers the loan you want to apply for. They may ask you to submit an application to find out.

An alternative is to apply for car loan pre-approval, which will provide a better estimate of how much you may be able to borrow before you go car shopping.

Car loan FAQs

Ok, that covers most of the loan basics and should help you compare car loans. But we did cover a lot there, so here’s a summary of some frequently asked questions about car loans.

How do you calculate car loan interest?

When you’re approved for a loan, your lender will tell you what your interest rate is and exactly how much you have to pay each month. The contract with the lender will also stipulate the estimated interest to be paid over the life of the loan. If you want to predict your car loan interest ahead of time or calculate the total amount of interest you’ll pay over the life of a current loan, head to your favourite search engine and search for ‘car loan interest calculator’. You’ll see there are many online calculators around that will help do the maths for you to give you an estimate.

Can you get a car loan if you have a bad credit history?

It’s possible to get a car loan if you have a bad credit history, but it’s far more difficult. When assessing your application, lenders will look at your credit history as well as your other debts, income etc. If you have a high, stable income and little or no other debts, your loan application may be approved even if you have a bad credit history. In some cases, there are lenders who will take on higher levels of risk but will generally charge a much higher interest rate in return. Your chances will vary between lenders, so check your chosen lender’s eligibility criteria and assessment criteria before you apply.

Can you get a car loan at 18 without a credit history?

It can be more difficult to get a car loan when you don’t have a credit history, but it’s still possible. Here are a few ways you can increase your chances of being approved for a car loan if you don’t have a credit history:

  • Ask someone with a good credit history to act as a guarantor or to co-sign your application. This may satisfy the lender that someone will help pay back the loan if you can’t. Just be aware that anything you do to negatively impact your credit score, such as missing a repayment, could also affect the guarantor or co-signer’s credit score.

  • Use dealer finance. Many dealers offer car finance to those with no credit history. The total cost of the loan may be higher, but getting a car may be worth the extra cost to you.

  • Hold off applying for a car loan until you do have a credit history. You could get a post-paid phone plan (in your own name). Or, if you pay utility bills, such as electricity, gas or water bills, get them switched to your name. Both could help you build up a positive credit history.

What is a balloon payment on a car loan?

Normally, when you repay a car loan the mandatory repayments will be the same or similar across the life of the loan. With a balloon payment, the earlier repayments are smaller and you make a large lump sum payment right at the end of the loan.

With a balloon payment, the overall cost of the loan is generally greater. But it can be a useful tool to reduce the size of repayments, if you predict you can afford the balloon payment by the end of the loan term.

How do you refinance a car loan?

The most common way to refinance a car loan is to take out another loan and use that credit to pay off the original loan. Refinancing a car loan is much like applying for the original car loan. The difference is, when you apply for the second car loan, you’ll give the details of that original loan to your lender. In some cases, you may pay the original loan off yourself. In others, the new lender may pay it for you.

What happens if you can’t pay your car loan?

At some point, not paying off your car loan will usually mean your lender will take your car, unless you have an unsecured loan. But, no matter the reason for being unable to pay your car loan repayments, there are steps you can take to prevent that from happening. For example, you could:

  • Talk to your lender and work out a plan that will enable you to pay. That might mean lowering your repayments for a while or some other change.

  • Refinance your loan. That will enable you to pay your current loan and may help you lower your repayments if you can find a loan with better terms.

  • Sell your car. Repay the loan and buy a cheaper car if you still need one.

Car Loan Articles

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Ultimate guide to car leasing

If you’re considering leasing your next car as an alternative to buying or taking out a car loan, our comprehensive guide could help.

Your guide to buying a used car

Whether you’re buying a car from a stranger, a friend or family member, this guide may help you navigate the process.

What happens when you miss a car loan payment?

Learn how missing a car payment may impact your credit history, affect your interest rate or earn you a late payment fee.

Deciding on the amount to borrow for a car loan?

From how much you can repay to your credit history, there are a number of key factors you should consider before taking out a car loan.

Ultimate new car buying guide

There’s a lot to consider if you’re in the market for a new car, including a variety of laws depending on your state or territory.

Car Loans Providers

Find a list of our car loan providers and compare the products that they offer.
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Savrr Comparison & Discount Codes
Savrr.com is a trading name of Fair Comparison Pty Ltd. The 'compare' pages of this website are provided by Fair Comparison Pty Ltd (ABN 48 647 552 958, credit representative number 530417) as a credit representative of QED Credit Services Pty Ltd (Australian Credit Licence 387856) to compare a range of credit card, home loan, personal loan, and car loan products. Fair Comparison Pty Ltd may receive a fee if users click through, apply and/or successfully acquire a loan or credit card product from or through a product provider.
Fair Comparison provides information relating to credit products offered by banks and other credit providers. We are not providers of loan, credit, or any other financial products. While we aim to provide information about a variety of products, we do not provide information about all products or product features available to consumers - there may be alternative options available elsewhere. We do not recommend or assist you to apply for specific products. Should you choose to apply for a product which is listed, you will deal directly with the provider of the product or its broker/representative. We aim to provide useful and up to date information, but you should always carefully check product information with the product provider prior to applying for or taking out a credit product. If you are unsure, you should seek clarification from the product provider or independent financial advice.
Savrr.com is a trading name of Fair Comparison Ltd. The ‘compare’ pages of this website are provided by Fair Comparison Ltd to compare a range of online trading platforms and products. Fair Comparison Ltd may receive a fee if users click through, apply and/or successfully apply for an online trading account or product.
Fair Comparison provides information relating to online trading platforms. We are not providers of loan, credit, or any other financial products nor are we an investment broker. While we aim to provide information about a variety of platforms or products, we do not provide information about all platforms or products available to consumers - there may be alternative options available elsewhere. We do not recommend or assist you to apply for specific platforms or products. Should you choose to apply for a platform or product which is listed, you will deal directly with the platform or its broker/representative. We aim to provide useful and up-to-date information, but you should always carefully check information with the platform provider prior to opening an account or making a financial decision. If you are unsure, you should seek clarification from the platform or independent financial advice.