Small lenders offering low-rate car loans
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.
Disclaimer
This article is over two years old, last updated on June 17, 2018. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent car loans articles.
Compare car loans in Australia
Product database updated 20 May, 2024
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