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Small lenders offering low-rate car loans

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:

LenderProductAdvertised rateComparison rate
360 FinancePersonal Car Loan4.85%5.72%
PrimeEdgeNew Car Loan4.99%6.04%
Bank FirstGreen Car Loan5.29%5.50%
Community First Credit UnionNew Car Loan5.34%6.10%
Move BankNew Car Loan5.39%5.66%
Loans.com.auCar Loan5.44%5.99%
Holiday Coast Credit UnionNew Car Loan5.49%5.49%
People’s Choice Credit UnionDiscounted Personal Loan (Car Loan)5.64%5.99%
Beyond BankLow Rate Special Car Loan5.69%5.97%
Defence BankNew Car Loan5.69%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 rateMonthly repaymentsTotal 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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This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.

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