Small lenders offering low-rate car loans

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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% 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.


^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

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