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Top-rated car loans for May 2020

Top-rated car loans for May 2020

If you’ve been dreaming of buying a car for a long time, you might have had to put these plans on the backburner due to COVID-19.

Australians are bracing for tough economic times ahead and are prioritising essential expenses when spending their hard-earned money.

Car buyers are noticeably concerned about the implications of taking on new debt in an economic slump, with road vehicle lending falling by 10 per cent in March, according to the Australian Bureau of Statistics. 

But debt isn’t a concern for everyone. Almost 40 per cent of Australians have a manageable amount of debt or no debt, J.D. Power data indicates.

If you’re one of the lucky ones, and you’ve been in the market for a set of wheels for a while, RateCity has put together some of the top-rated car loans in three different categories for May 2020 to help you with your research.

Even if you haven’t been significantly affected by the downturn, keep in mind that a car loan can be a heavy financial commitment. It’s worth your time to compare interest rates, fees and features of multiple car loans before deciding which one is right for you.

(Rankings are correct at the time of publishing. Please note lenders may trade places on the list as interest rates and fees change and RateCity’s tracker reflects these movements.)

Top five rated new car loans

Usually, lenders have lower interest rates on secured car loans for new cars. This is because newer cars are worth more, generally easier to resell and more straight-forward to value than older cars. This reduces the risk for the lender, which means lenders are able to offer lower rates.

If you’re borrowing to buy a new vehicle up to two years old, here are the top five rated new car loans. The ratings below assume a secured $30,000 loan on a 60-month loan term.

Company
Product

Car Loan (Good Credit and above)

Real Time Rating™

4.80

/ 5
Interest Rate

From

3.51

% p.a

Fixed

Comparison Rate*

4.21

% p.a

Monthly repayment

$546

Real Time Rating™

4.80

/ 5
Go to site
Company
Product

New Car Loan

Real Time Rating™

4.00

/ 5

Winner of Best New Car Loans, RateCity Gold Awards 2022

Interest Rate

4.59

% p.a

Fixed

Comparison Rate*

4.86

% p.a

Monthly repayment

$561

Real Time Rating™

4.00

/ 5
Go to site

Winner of Best New Car Loans, RateCity Gold Awards 2022

Company
Product

New - Prime Special (Fixed)

Real Time Rating™

3.35

/ 5

Winner of Best New Car Loans, RateCity Gold Awards 2022

Interest Rate

5.09

% p.a

Fixed

Comparison Rate*

5.64

% p.a

Monthly repayment

$567

Real Time Rating™

3.35

/ 5
Go to site

special

You could win a $1,000 fuel voucher ~ Ends in 5 months

Winner of Best New Car Loans, RateCity Gold Awards 2022

Company
Product

Car Loan

Real Time Rating™

3.99

/ 5

Winner of Best New Car Loans, Best Used Car Loans, RateCity Gold Awards 2022

Interest Rate

From

3.99

% p.a

Variable

Comparison Rate*

4.86

% p.a

Monthly repayment

$552

Real Time Rating™

3.99

/ 5
Go to site

Winner of Best New Car Loans, Best Used Car Loans, RateCity Gold Awards 2022

Top five rated used car loans

If you’re a thrifty consumer, you might not need to have the newest car on the market. It’s widely known that new cars depreciate rapidly as soon as it hits the road. What’s more, new cars can lose as much as 30 per cent of its value in its first three years, according to NRMA.

For those borrowing to buy a used vehicle two years and older, here are the top five rated used car loans. The ratings assume a secured $20,000 loan on a 36-month loan term.

Company
Product

Car Loan (Good Credit and above)

Real Time Rating™

4.80

/ 5
Interest Rate

From

3.51

% p.a

Fixed

Comparison Rate*

4.21

% p.a

Monthly repayment

$546

Real Time Rating™

4.80

/ 5
Go to site
Company
Product

Better Car Loan Fixed

Real Time Rating™

3.54

/ 5
Interest Rate

5.44

% p.a

Fixed

Comparison Rate*

5.71

% p.a

Monthly repayment

$572

Real Time Rating™

3.54

/ 5
Go to site
Company
Product

Car Loan

Real Time Rating™

3.99

/ 5

Winner of Best New Car Loans, Best Used Car Loans, RateCity Gold Awards 2022

Interest Rate

From

3.99

% p.a

Variable

Comparison Rate*

4.86

% p.a

Monthly repayment

$552

Real Time Rating™

3.99

/ 5
Go to site

Winner of Best New Car Loans, Best Used Car Loans, RateCity Gold Awards 2022

Company
Product

Used Car Loan (< 5 years, Dealer Only) (Fixed)

Real Time Rating™

3.14

/ 5

Winner of Best Used Car Loans, RateCity Gold Awards 2022

Interest Rate

5.59

% p.a

Fixed

Comparison Rate*

6.14

% p.a

Monthly repayment

$574

Real Time Rating™

3.14

/ 5
Go to site

special

You could win a $1,000 fuel voucher ~ Ends in 5 months

Winner of Best Used Car Loans, RateCity Gold Awards 2022

Top five rated green car loans

Cars with a sustainability element are shooting up in popularity. As a result, green car loans are popping up on the market. These car loans are specifically for those borrowing to buy a fuel-efficient vehicle or an electric car and may have lower interest rates than regular car loans.

Here are the top five rated green car loans. The ratings assume a secured $30,000 loan on a five-year loan term.

Company
Product

Green Road Personal Loan

Real Time Rating™

3.75

/ 5
Interest Rate

4.74

% p.a

Variable

Comparison Rate*

5.01

% p.a

Monthly repayment

$563

Real Time Rating™

3.75

/ 5
Go to site
Company
Product

Green Car Loan (Fixed)

Real Time Rating™

3.44

/ 5

Winner of Best Green Car Loans, RateCity Gold Awards 2022

Interest Rate

4.89

% p.a

Fixed

Comparison Rate*

5.44

% p.a

Monthly repayment

$565

Real Time Rating™

3.44

/ 5
Go to site

special

You could win a $1,000 fuel voucher ~ Ends in 5 months

Winner of Best Green Car Loans, RateCity Gold Awards 2022

Company
Product

Green Car Loan (Special)

Real Time Rating™

3.47

/ 5
Interest Rate

5.29

% p.a

Variable

Comparison Rate*

5.56

% p.a

Monthly repayment

$570

Real Time Rating™

3.47

/ 5
Go to site
Company
Product

Fixed Car Loan (with Low Emission Vehicle discount)

Real Time Rating™

3.34

/ 5
Interest Rate

5.45

% p.a

Fixed

Comparison Rate*

5.45

% p.a

Monthly repayment

$572

Real Time Rating™

3.34

/ 5
Go to site

special

Offset your car’s carbon emissions for the life of the loan

Where to find up-to-date car loan information

Almost nobody has time these days to check each lender’s individual website regularly. For those seeking up-to-date car loan information, RateCity has your back. Keep your finger on the pulse with RateCity’s Car Loans Leaderboards, where car loans are tracked and rated daily.

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This article was reviewed by Personal Finance Editor Alex Ritchie before it was published as part of RateCity's Fact Check process.

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