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%|
|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|
Please note that the cheapest car loan isn’t necessarily the best car loan for every borrower.