Search and compare car loan interest rates in QLD
Whether you're in Brisbane, Cairns, or somewhere else in Queensland, browse car loans and calculate repayments from local lenders. Compare interest rates, fees and features to help decide on one that's right for you.
$5k to $100k
Drive away with a new set of wheels, without forking out ongoing fees.
Winner of Best New Car Loans, RateCity Gold Awards 2021
$5k to $63k
Tech-savvy car buyers can apply for this digital lender online, and pay no ongoing fees or early repayment fees.
$10k to $150k
Enjoy the freedom of choosing a new or used car, as well as the certainty of a fixed-rate car loan.
$10k to $100k
Lock in a competitive interest rate and no ongoing fees with this secured car loan available for new and demo vehicles.
$5k to $100k
Winner of Best Used Car Loans, RateCity Gold Awards 2021
$5k to $50k
$5k to $750k
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Car loans in Queensland
If you’re hoping to see some of the best Australia has to offer, hitting the road in Queensland can do just that. Whether you’re looking for a 4WD to handle off-road terrain in 75 Mile Beach, a family-friendly SUV to get you from the Gold Coast to Brisbane, or a motorbike to cruise down Lions Road, Queensland car finance may be able to help you achieve your goals and suit your budget.
If you’re hoping to buy a new car or used car in Queensland, there are a range of Australian car loan lenders offering financing options that may suit your financial needs and budget. You may want to shop around and compare your options before making any financial decisions and hopping in the driver's seat.
How to compare Queensland car loans
There's more to a car loan than nabbing the lowest interest rate on the market. When shopping around for vehicle finance in QLD, you'll want to ensure you're comparing all aspects of a car loan before making a loan application. All of which may impact the amount you end up paying over the life of the car loan.
Here are some key car loan factors and features to take into consideration when searching for your used or new vehicle in QLD:
- Interest rate. This is the amount of interest that will be charged on top of the loan amount. It is one of the biggest influences to the cost of the loan. A lower interest rate doesn't necessarily mean it's the most affordable, as if the car loan has costly ongoing fees, it will increase the cost of the loan over time.
- Comparison rate. An interest rate gives borrowers are more "realistic" view of the cost of a car loan, and takes into consideration ongoing fees, based on a 5-year, $20,000 loan.
- Fees. There are a range of fees a car loan or personal loan provider may charge, including upfront fees, annual fees and more. You may even be charged fees for making extra repayments, also called early repayment fees, so take stock before you apply.
- Interest rate type. You may need to choose between a car loan with a variable interest rate or a fixed interest rate.
- Secured or unsecured. Much like a personal loan, a car loan will either be secured against an asset (the vehicle), or unsecured. Secured car loans typically are more affordable, as there's less risk on the provider due to your having offered up the car as collateral. However, if you default on the car loan, the vehicle will be seized, which is not the case with unsecured car loans.
- Loan repayment type. Depending on your budget and financial situation, you may want to choose between making weekly, fortnightly or monthly repayments on your car loan.
- Loan term. The number of years you will be making repayments on the car loan. This is typically two to five years, but can climb as high as ten years, depending on the car loan provider. Generally speaking, the longer the car loan, the more interest you'll pay over time.
- Vehicle status. Choosing between new car or a used car may impact the car loan cost. For example, used vehicles are generally more affordable, but car loan providers may only offer finance options for vehicles up to a certain number of years old. It may be easier to get financing from a new car loan, but a new vehicle can be more expensive and result in higher car loan repayment amounts.
- Car loan lender. When you're looking for your next car, you'll find that Queensland car dealerships may have relationships with specific lenders. This is similar to how a broker may recommend home loan lenders they may have relationships with. While this may be more convenient, it's still worth comparing your options through comparison sites like RateCity, and using comparison tools like tables and calculators, to see which car loans may suit you across a wider segment of the market.
What eligibility criteria do I need to meet for a Queensland car loan?
Just like when applying for any financial product, like a credit card, getting car loan approval may require you meeting certain requirements. These may include:
- Being an Australian citizen or permanent resident
- Being 18-years or older
- Meeting a minimum income requirement
- Being employed in one role for a minimum amount of time
- Having a good to excellent credit score
Each car loan provider will have its own eligibility criteria, so it's worth looking over the terms and conditions or product disclosure statement of a car loan before applying.
Keep in mind that having a bad credit score or no credit history doesn't necessarily mean you'll be rejected for a car loan in Queensland. Learn more about your bad credit car loan options here.
Are there any other costs to consider?
When searching for your Queensland car loan, it's worth factoring in in the other costs and potential liabilities involved car ownership to ensure you are budgeting correctly. These can include:
- Car insurance
- Stamp duty
- Petrol costs
- Regular services, maintenance and repairs
- Road tolls
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Personal Finance Editor
Alex is a personal finance writer and editor at RateCity, and has been writing about finance for over five years. She is passionate about closing the gender pay and superannuation gap, and aims to help young Aussies to overcome their financial apathy and better manage their finances. Alex has been published in numerous print and online outlets, including Money Magazine, Lifehacker Australia, and Business Insider.
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Frequently asked questions
Where can I get a student car loan?
Student car loans are not a necessarily a product in and of themselves, but what you may be looking for is a guarantor car loan.
A guarantor car loan has a third-party act as a form of guarantee for your loan application, telling the bank or lender that if you default on your loan, someone will pay the loan repayments.
Going guarantor on a car loan is no new thing, and before internet-based credit scores, guarantor car loan applicants would apply for loans with a guarantor or property owner who could vouch for the person borrowing the loan.
To get a guarantor car loan, you’ll need someone willing to act as a guarantor for your car loan.
What is a secured car loan?
A secured car loan is a loan that is connected to a form of security, or collateral. Generally, the security for a car loan is the car itself. If you fail to repay the loan, the lender might seize your car, sell it and then use the proceeds to recover their debt.
How to find a great car loan
Historically, finding a great car loan would require excess research ranging from visiting an excess of websites or making phone calls, but technology has moved on. Using RateCity, Australia’s leading financial comparison service, you can check out great deals from a range of lenders on the one site.
To start, select the amount you want to borrow and the length of the loan, narrowing your search to show just fixed or variable interest rate results.
Once you’ve indicated your search criteria, you’ll see an immediate list of lenders, ranked by interest rate or application fees. You’ll also be able to view the monthly repayment amount for each result, helping you to know what you can afford.
Up to six products can be compared side-by-side, complete with more information about each car loan, giving you more information about your options.
When comparing your car loan options, it’s ideal to keep in mind some points find a great car loan for your needs. Consider the following:
- Choosing a low interest car loan can reduce costs
- Selecting an option with low fees and charges is ideal, because these can really add up
- Be aware of penalties, such as early exit penalties if you pay off the loan sooner than expected
- Consider the features that best suit your situation
There are many ways to ensure that you get a great car loan. Ultimately, you’ll end up with the best deal by doing your research and selecting the most suitable product for you.
What is a guarantor car loan?
A guarantor car loan is a type of loan that features a guarantor on the agreement. The guarantor is a third-party individual, often a friend or relative, who guarantees the loan will be repaid if the borrower defaults on the car loan.
Guarantor car loans are often geared at people who might otherwise struggle being accepted for a secured car loan when purchasing a vehicle. Some of the reasons might include a lack of credit history such as with a student or young person, if there’s bad credit, or age as a factor such as with pensioners.
How do you get a car loan?
There are four different ways you can get a car loan. You can go straight to a lender. You can get a finance broker to organise a car loan for you. You can get ‘dealer finance’ – which is when the car dealer organises a car loan for you. Or you can organise your own car loan through a comparison website, like RateCity.
Whichever method you choose, you will need to provide proof of identification, proof of income and proof of savings. So you may be asked for any combination of passport, driver’s licence, bank statements, payslips, tax returns and utility bills. You might also be asked to provide proof of insurance.
What is a guarantor on a car loan?
A guarantor on a car loan is a third party, usually a relative or friend, who guarantees to meet the repayments of a loan for the purchase of a car, if the borrower/owner of the car defaults on the loan.
Guarantor car loans can be useful for people who would otherwise struggle in being accepted for credit to purchase a vehicle. These may include people with bad credit, students and young people who may have no credit history, as well as some pensioners.
Many lenders offer guarantor car loans, guarantor personal loans and guarantor home loans, because of the significantly reduced risk to the lender.
What are the pros and cons of guarantor car loans?
Like all things, there are positives and negatives to guarantor car loans, though one may outweigh the other depending on your needs.
Guarantor car loan pros may include that you’re more likely to be approved for a long if you have no credit or a history with bad credit, that you’re more likely to secure a car loan with a lower interest rate, and that because your guarantor car loan is based on a relationship, you will be more inclined to meet your repayment schedule.
However, there are negatives, as well. Guarantor car loan cons may include leaving a detrimental mark on a personal relationship with added strain if you don’t meet your repayments, and you may take out a loan that you can’t actually afford.
Weighing these pros and cons will give you a greater understanding of whether a guarantor loan is ideal for your circumstances.
Can I get a discounted student car loan?
Being a student is tough enough, and while you might find the odd student discount on movies and technology, the same can’t be said about car loans, as you can’t really get a discounted student car loan.
Lenders make money on the interest and fees that they charge with loans, and the lowest interest and fees are given to the most reliable credit holders: people with excellent credit history.
As a student, you are unlikely to have enough on your credit report to warrant an excellent history. There are however, ways of getting a lower interest car loan if you can’t get an interest-free loan from the bank of mum and dad. One way of doing this may be through getting a guarantor car loan, which can get you a secured car loan by setting your parents up as guarantors.
What is a car loan?
A car loan, also known as vehicle finance, is money that a consumer borrows with the express purpose of buying a vehicle, such as a car, motorbike, van, truck or campervan. Car loans can be used for both new and used vehicles.
Can I get a car loan with poor credit?
Poor credit doesn’t necessarily mean you won’t be able to get finance for your car purchase, though your options aren’t likely to be the same as someone with good credit.
In fact, a number of specialist lenders exist offering car finance for customers with poor credit, able to provide access to bad credit car loans.
However having a history of poor credit will likely mark you as a potential risk to lenders, so your car financing needs could see higher fees and interest rates. Alternatively, consider a secured car loan, which is a type of loan that uses the car you purchase as collateral, reducing the risk.
Other options include getting someone close to act as a guarantor for your car loan, or to talk to a broker about a personalised rate specific to your circumstances.
How to apply for pre-approval of a car loan from RACV?
If you’re planning to apply for a car loan with RACV, the best way to start is by having a clear picture of your requirements. By getting pre-approval on your car loan, you’ll be able to go shopping for your new car with a definite budget that will help you narrow your search. Once you’ve decided to buy a car with the help of a loan, you may have even identified the type of car you would like to purchase, you can seek pre-approval on a car loan from RACV.
You can apply for pre-approval by filling out a form online and uploading the relevant documentation regarding your identification, income, debt and credit history. Once you submit your application, RACV will review and verify the documents. If you meet their eligibility criteria, you will get pre-approval for the amount they are willing to lend to you. With this pre-approval, you can go car shopping with the confidence of knowing what you can afford.
What is a loan term?
The loan term is the amount of time the lender gives you to repay the car loan. For example, if you take out a $20,000 car loan with a five-year loan term, you would be expected to pay off the entire $20,000 (plus interest) within five years.
What is the role of a guarantor on a car loan?
The role of a guarantor on a car loan is to meet repayments if the borrower of the loan were to default for any reason, such as not being able to afford it.
Useful for loan applicants with poor or bad credit, a guarantor makes it possible for these loans to be made secure, because there’s less risk for a lender overall.
Companies will likely give fair warning before they charge a guarantor for the costs of the loan, or before they repossess anything of the guarantor’s that may have been used as security. Still, it is important for a car loan guarantor to fully understand their responsibilities before they commit to the transaction.
How to get pre-approval for your ANZ car loan?
Getting pre-approval on your car loan can give you a good idea of how much you may be allowed to borrow. This will help you set your limits while selecting your car. You can apply for pre-approval for an ANZ car loan by filling out a simple online application form, where you’ll have to submit relevant identity, employment and income documentation.
ANZ will then conduct a credit check based on your application and documentation. It’s important to note that this could have an impact on your credit history. Based on your credit and income documentation analysis, ANZ will provide an amount they are willing to give you as a loan. After this, you can find the right car that matches the proposed loan amount and send it through your final loan application.
It’s important to remember that pre-approval gives you an indication of how much you can borrow from ANZ to purchase your car, but it doesn’t guarantee the final approval.
Can I buy a car as a student?
Buying a car is a huge financial decision, and shy of marriage and purchasing a house (or perhaps around the world travels), it may be the biggest financial decision you make. But if you’re looking at your empty pockets, don’t despair! Your dream of owning your own car could become a reality, if you look for and compare the right car loans for your circumstances.
What is collateral?
Collateral, or security, is an asset you agree to surrender to a lender if you fail to repay a loan. Generally, the collateral for a car loan is the car itself. So if you fail to repay the loan, the lender might seize your car, sell it and then use the proceeds to recover their debt.
What is a loan-to-value ratio?
The loan-to-value ratio, or LVR, is a percentage that expresses the amount of money owed on the car compared to the value of the car. For example, if you take out a $15,000 loan to buy a $20,000 car, you have a loan-to-value ratio of 75 per cent. Loan-to-value ratios change over time as you pay off your loan and your car depreciates in value. For example, two years later you might now owe $10,000 on your car, which might now be worth $15,000. In that case, although there would still be a $5,000 difference between the size of the outstanding loan and the value of the car, the loan-to-value ratio would now be 67 per cent.
I’ve been denied a car loan before; can I still get car finance?
Even if you’ve been denied a car loan before, you might still be able to get car finance. The key is to make the right application to the right lender.
The ‘right’ application is one that makes you look like an acceptable risk, which might include things like improving your credit score, increasing your savings rate and accumulating a bigger deposit.
The ‘right’ lender is one that deals with borrowers like you. For example, while some car loan lenders only deal with good credit borrowers, there are others that specialise in bad credit or poor credit borrowers.
Can I get a car loan with bad credit?
Yes, you can get a car loan with bad credit, although you’ll probably find the process trickier and dearer than that experienced by people who have good credit histories.
You can find a number of lenders that specialise in bad credit car loans. However, make sure you compare bad credit car loans before you sign on the dotted line, because not all car loans are alike and having bad credit may mean you are more likely to be hit with higher fees and interest rates.
If you have bad credit, it’s important not to take out a car loan unless you can afford the repayments because a default could further damage your credit rating. Conversely, if you make all the repayments and repay the loan successfully, your credit rating might improve.