Australians who are in the market for a new car can take out a car loan for under 5 per cent, an analysis of the car loan market has found.
There are several lenders with car loans under 5 per cent, including 360 Finance, where car loans start from 4.85 per cent (comparison rate 5.72 per cent).
Another non-bank lender, PrimeEdge, is offering car loans from 4.99 per cent (comparison rate 6.04 per cent).
Here are some of the cheapest car loans in Australia:
| Lender | Product | Advertised rate | Comparison rate |
|---|---|---|---|
| 360 Finance | Personal Car Loan | 4.85% | 5.72% |
| PrimeEdge | New Car Loan | 4.99% | 6.04% |
| Bank First | Green Car Loan | 5.29% | 5.50% |
| Community First Credit Union | New Car Loan | 5.34% | 6.10% |
| Move Bank | New Car Loan | 5.39% | 5.66% |
| Loans.com.au | Car Loan | 5.44% | 5.99% |
| Holiday Coast Credit Union | New Car Loan | 5.49% | 5.49% |
| People’s Choice Credit Union | Discounted Personal Loan (Car Loan) | 5.64% | 5.99% |
| Beyond Bank | Low Rate Special Car Loan | 5.69% | 5.97% |
| Defence Bank | New Car Loan | 5.69% | 6.55% |
How much does a car loan cost?
If you take out a $20,000 car loan with a five-year loan term, here is how much you’d have to repay based on different interest rate scenarios:
| Interest rate | Monthly repayments | Total repayments |
|---|---|---|
| 5.00% | $377 | $22,645 |
| 6.00% | $387 | $23,199 |
| 7.00% | $396 | $23,761 |
| 8.00% | $406 | $24,332 |
| 9.00% | $415 | $24,910 |
Please note that the cheapest car loan isn’t necessarily the best car loan for every borrower.
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