Whether it's to get to work, take the kids to school or take to the open road, owning a car is essential for many Australians. If you want to buy your first car or upgrade to a new one, a car loan may help turn your dreams into reality. 

Find and compare Australian car loans

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Product
Advertised Rate
Comparison Rate*
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Monthly repayment
Loan amount
Total repayments
Real Time Rating™
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5.45%

Fixed

5.80%

IMB Bank

$572

$2k to $75k

3.29

/ 5
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More details

8.14%

Variable

9.44%

Macquarie Bank

$610

$10k to $250k

2.11

/ 5
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More details

3.97%

Fixed

4.51%

loans.com.au

$552

$5k to $100k

4.11

/ 5
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More details

2.99%

Variable

3.60%

Queensland Country Bank

$539

$1k to $75k

4.77

/ 5
More details

From

3.60%

Variable

4.51%

Australian Military Bank

$547

$4k to $80k

4.24

/ 5
More details

From

4.40%

Variable

4.88%

ebroker.com.au

$558

$5k to $150k

3.87

/ 5
More details

From

3.85%

Variable

4.94%

Finance Ezi

$550

$10k to $250k

3.73

/ 5
More details

4.80%

Variable

4.94%

First Choice Credit Union

$563

From $30k

3.79

/ 5
More details

4.69%

Variable

4.96%

Police Credit Union

$562

From $20k

3.83

/ 5
More details

4.69%

Fixed

4.96%

Police Credit Union

$562

From $20k

3.93

/ 5
More details

From

4.99%

Variable

4.99%

Orange Credit Union

$566

From $15k

3.82

/ 5
More details

4.74%

Variable

5.01%

Transport Mutual Credit Union

$563

From $5k

3.74

/ 5
More details

4.49%

Fixed

5.10%

Auswide Bank

$559

$5k to $75k

3.50

/ 5
More details

4.89%

Fixed

5.16%

Beyond Bank Australia

$565

$25k to $125k

3.73

/ 5
More details

4.89%

Fixed

5.16%

MOVE Bank

$565

$10k to $150k

3.85

/ 5
More details

4.99%

Variable

5.20%

Central West Credit Union

$566

From $30k

3.60

/ 5
More details

4.99%

Fixed

5.20%

Horizon Bank

$566

From $5k

3.72

/ 5
More details

4.67%

Fixed

5.22%

loans.com.au

$562

$5k to $100k

3.71

/ 5
More details

4.99%

Variable

5.29%

Transport Mutual Credit Union

$566

From $5k

3.80

/ 5
More details

4.99%

Variable

5.35%

The Mac

$566

From $1k

3.77

/ 5
More details

From

4.89%

Fixed

5.44%

Plenti

$565

$10k to $100k

3.71

/ 5
More details

5.45%

Fixed

5.45%

Bank Australia

$572

From $1k

3.40

/ 5
More details

5.29%

Variable

5.56%

Bank First

$570

From $10k

3.52

/ 5
More details

5.29%

Fixed

5.56%

Bank First

$570

From $10k

3.52

/ 5
More details

4.99%

Fixed

5.59%

Queensland Country Bank

$566

$1k to $75k

3.46

/ 5
More details

From

4.99%

Fixed

5.69%

RACV

$566

From $5k

3.38

/ 5
More details

5.45%

Variable

5.80%

Hunter United

$572

$10k to $100k

3.08

/ 5
More details

From

5.29%

Fixed

5.84%

Plenti

$570

$10k to $100k

3.35

/ 5
More details

From

5.29%

Fixed

5.84%

Plenti

$570

$10k to $100k

3.50

/ 5
More details

5.80%

Variable

5.84%

Laboratories Credit Union

$577

$1k to $50k

3.41

/ 5
More details

5.84%

Variable

5.84%

Lysaght Credit Union

$578

From $5k

3.24

/ 5
More details

From

5.50%

Fixed

5.85%

OurMoneyMarket

$573

$2k to $75k

3.26

/ 5
More details

5.49%

Fixed

5.87%

Greater Bank

$573

$5k to $100k

3.40

/ 5
More details

5.49%

Variable

5.87%

Nova Alliance Bank

$573

From $5k

3.60

/ 5
More details

5.60%

Fixed

5.88%

Illawarra Credit Union

$574

$10k to $50k

3.39

/ 5
More details

5.64%

Fixed

5.92%

Illawarra Credit Union

$575

$10k to $50k

3.37

/ 5
More details

5.59%

Variable

5.94%

Goldfields Money

$574

From $5k

3.16

/ 5
More details

5.65%

Variable

6.00%

BCU

$575

$5k to $65k

3.25

/ 5
More details

From

4.99%

Fixed

6.04%

CarLoans.com.au

$566

$7.5k to $100k

3.13

/ 5
More details

5.79%

Variable

6.06%

Bank First

$577

From $10k

3.30

/ 5
More details

5.79%

Fixed

6.06%

Bank First

$577

From $10k

3.30

/ 5
More details

5.79%

Variable

6.09%

Woolworths Team Bank

$577

$1k to $50k

3.25

/ 5
More details

Learn more about car loans

How do Australian car loans work? 

Australia's car loan market is very competitive, so there are lots of lenders and loan types to choose from. There are various ways you can get a car loan. You can go directly to the lender, or you can use a comparison website, a finance broker or a car dealer. 

Whichever you choose, the loan provider will purchase the car for you and you then pay back the lender the cost of the car, plus interest costs, over a set period of time, usually three to five years. The car loan will allow you to eventually own the car outright.  

A car loan will include: 

  • Interest rate – e.g. 7.95 per centf  
  • Interest type – variable or fixed 
  • Loan size – e.g. $30,000 
  • Loan term – e.g. 5 years 
  • Loan type – secured or unsecured
  • Loan repayments – weekly, fortnightly or monthly
  • Loan fees – establishment, account-keeping, redraw, late payment and/or early repayment fees 

 

What types of car loan are available 

The two main types of car loans are secured or unsecured loans. Read more about these loan types to find out which one is best for you.   

There are many factors that go into choosing a car loan, including deciding whether you want an interest rate that is variable or fixed. Features may include the option to make flexible repayments or introductory offers with low interest rates for a fixed period. 

How do you find the best Australian car loan?

The best way to find the right car loan for you is to do your research. Decide what type of loan you want, the feature that you need, then use comparison tools, such as tables and calculators, to narrow down your options. 

Do you want a fixed interest rate or variable one? Do you want the flexibility of being able to make extra repayments or redrawing extra repaymentsComparison tables allow you to filter down loan options until you have a personalised list to choose from.  

Is the cheapest Australian car loan the best? 

The cheapest loan (or one with the lowest advertised rate) may not necessarily be the best option for you. This is why looking at the comparison rate is a helpful way to gauge what you’ll actually pay.  

Comparison rates help determine the real cost of the loan. They include the interest rate as well as most applicable fees and charges.  

ASIC’s MoneySmart provides a helpful table explanation:  

  Interest Rate  Fees & Charges  Comparison Rate 
Car Loan A 8% 0.5% 8.5%
Car Loan B 8.25% 0.1% 8.35%

Note: table amended to reflect car loan rates.  

Car loan B may have a higher advertised rate, but it will end up costing you less than car loan A. This is how comparison rates can be a helpful tool in choosing your car loan.  

Keep in mind that if you also a flexible loan, such as having a redraw facility, you may be charged a higher interest rate. It all depends on what kind of loan you want.  

What Australian car loan can you afford? 

The car loan you can afford will depend on your personal circumstances. Use a car loan calculator to determine potential loan repayments and decide if you can afford them.  

Your application may be rejected if the lender believes you can’t afford the loan. Use a calculator before you apply to minimise your risk of rejection, as this can negatively impact your credit history. Your credit history is checked during the application process. If you have a poor history, consider taking steps to improve it before you apply for a loan.  

How to apply for an Australian car loan

After you’ve decided on your dream car and car loan, here’s how you can apply for it: 

  • Do a quick credit score health check to avoid any nasty surprises. You never know what could be in your credit history. Sometimes the debt defaults of family or others with a similar name to yours can accidentally be applied to your credit history. 
  • Use a car loan calculator to confirm you can afford the potential loan repayments. If you’re buying a car for your family, consider what percentage of your take home pay the repayments will be, and whether this is doable if you lose your job.  
  • Organise your paperwork. You will need to show the lender personal identification (such as your license or passport), proof of income, copies of bank statements, copies of bills, and information on any debts you may have (such as credit cards). You’ll also need to provide information about the car you want to buy. 

How long does it take to be approved for a car loan? 

Most lenders offer online application, which can take up to 15 minutes to complete. This makes the process a lot quicker than going to a bank branch to apply for a car loan.  

While the application process may be speedy, your approval may not be. Lenders may take a few hours or days to respond. Approval from the big four banks can take between one and three business days. 

 

Can I get pre-approval for a car loan?

Much like with a home loan, it is possible to get pre-approval for a car loan. Typically, you’ll choose the car you want from a dealer or used car lot and then apply for car loan finance.  

With car loan pre-approval you’ll be able to walk into a dealership with the confidence of knowing exactly how much you can borrow. This can be a helpful strategy when negotiating the car price.  

However, as with a home loan, your pre-approval will only be for a set time frame.  

The pre-approval application process is the same as applying for a car loan. However, as pre-approval is not always offered, may need to ask specifically for pre-approval on a loan.