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Green Car Loan

Real Time Rating™

3.83

/ 5
Interest Rate

From

3.39

% p.a

Fixed

Comparison Rate*

4.89

% p.a

Company
Monthly repayment

$544

Loan amount

$10k to $150k

Total repayments
Real Time Rating™

3.83

/ 5
Go to site
Product

Used Car Loan

Real Time Rating™

3.47

/ 5
Interest Rate

From

3.89

% p.a

Fixed

Comparison Rate*

4.60

% p.a

Company
Monthly repayment

$551

Loan amount

$10k to $150k

Total repayments
Real Time Rating™

3.47

/ 5
Go to site
Product

New Car Loan

Real Time Rating™

3.57

/ 5
Interest Rate

From

3.69

% p.a

Fixed

Comparison Rate*

4.40

% p.a

Company
Monthly repayment

$548

Loan amount

$10k to $150k

Total repayments
Real Time Rating™

3.57

/ 5
Go to site
Product

Green Loan

Real Time Rating™

3.94

/ 5
Interest Rate

3.99

% p.a

Variable

Comparison Rate*

4.63

% p.a

Company
Monthly repayment

$552

Loan amount

$10k to $100k

Total repayments
Real Time Rating™

3.94

/ 5
Go to site

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Car loan lenders we compare at RateCity

Can you get a car loan in Western Australia?

Western Australia is one of the most beautiful areas in Australia to explore and, as our largest state or territory, is admittedly hard to travel through without a car.

Whether you’d like to take a trip from Perth to Broome, visit the wineries in the Margaret River or explore the natural beauty of Ningaloo Reef, it can be a challenge to get around if you don’t have a vehicle. And if you don’t quite have all the funds to purchase your first or next car, motorcycle, or caravan, it may be worth considering taking out a car loan.

Where can you get car finance in Western Australia?

If you’re in the market for a car loan in Western Australia, there are a range of options you may want to consider to help you find your ideal loan.

Generally speaking, most car buyers will look to take out financing with a car loan lender or just fill in a loan application at the dealership. However, by sticking with your childhood bank or just accepting the first loan offered to you when you purchase a vehicle, you may be missing out on hundreds, even thousands of dollars in savings.

That’s because by not doing your research and comparing your car loan options, you may pay more than you otherwise would in ongoing fees and interest rate charges. Using comparison tools, such as those listed below, may be able to help ensure you apply for the best car loan for your financial situation and budget.

Further, if you need some additional help in finding your dream car loan, or for information specific to your personal financial situation (such as finding car loans for bad credit history), consider using a car finance broker or reaching out to a Western Australian financial adviser. A car loan broker may also be able to assist you through the process of gaining car loan pre-approval before you begin shopping around for cars.

Speak to an Australian car loan broker today

Madhu Chaudhuri
5.0
20 Reviews
Madhu Chaudhuri’s journey from a practicing Architect to a Broker has shaped her 27-year career in Australia culminating in the formation of her company Finance & Mortgage Solutions in 2001. Her vision to assist people to grow themselves financially, to be able to contribute and flourish in the community is the foundation of her practice, resulting in Industry recognition at the State and National level as a top mortgage broker. At FMS, Madhu leads a multi-lingual team to design and engineer finance solutions whether to build a home and material stability or supporting emerging entrepreneurs to open and run small businesses in their local communities. Coming to Australia as an immigrant herself more than 20 years ago, Madhu has lived experience and understanding of some of the struggles of relocating financially and emotionally- especially for migrants. Recognising the need for multi-lingual and multi-cultural access points, FMS has filled this need for migrant journey’s to be heard and supported. She donates her time for various women’s groups such as Saheli Club and Indian Mums Sydney and receives genuine fulfillment when counselling and advising on financial matters to help women achieve financial independence. She has now also been invited to Lean In Org to be the financial mentor in a workshop series for migrant women. Madhu’s drive lies in genuine connection with the community, recognising that it is built by diverse perspectives and experiences and there is a lot to learn from the young and old collectively. Madhu has sponsored an annual ‘Good Word Award’ at the local public school to support public speaking and communication programs for children for the past 7 years, as well as regular events and outing for the aged South Asian community. Finance & Mortgage Solutions strength lies in guiding, mentoring and coaching clients as well as brokers, which has resulted in growth in cities including Sydney, Melbourne, Brisbane, Adelaide & Canberra. Their services break down a pathway for migrants to financial autonomy into achievable milestones to build a strong, foreseeable financial future in their new country.
ACT2604
ACL: 384375

How do you compare car loans in Western Australia?

While there's no such thing as the best car loan across the board, RateCity's comparison tools can help you in your search to find the best car loan options for you.

RateCity's car loan comparison table, such as the one on this page, can make your search for finance easier with customisable filters that you can use to narrow down your results. You can search for specific lenders, security type, key features, borrow amount, loan terms and whether you're in the market for a new vehicle or a used vehicle.

Car Loan Repayment Calculators can provide you with a repayment estimate based on the amount you'd like to borrow, the car loan term, your preferred interest rate and your credit rating. A car loan calculator may help you better understand what might work for your budget. Keep in mind that knowing the price of the car you'd like to buy can improve the accuracy of your estimate.

Real Time RatingsTM is another comparison tool that may assist you in creating a short list of car finance options. It is RateCity’s world-first rating system that ranks car loans based on your individual requirements. Each car loan is given a score out of five, based on loan costs and flexibility.

What car loan rates can you get in WA?

You may be wondering if interest rates differ from state-to-state, and what range of car loan rates you may be offered if you apply for a Western Australia-based lender.

However, in Australia the rate you may be offered depends on several personal and loan factors, including your credit history, whether the loan is secured and the interest rate type. The location of the car loan lender should not necessarily impact the interest rate you are offered.

  • Credit history

Your credit report will impact the interest rate you may be offered, as lenders will assess your credit score to determine your likelihood to repay your car loan on time and your overall reliability as a borrower.

Borrowers with an excellent credit score have a higher chance of gaining loan approval, as the higher your credit score, the less risk you pose to the lender. Having a good to excellent credit history may result in the lender offering you a lower interest rate than a car buyer with a bad credit score.

  • Secured vs. Unsecured

Secured car loans are generally more affordable than unsecured car loans. By offering up an asset as collateral on the loan, such as the vehicle itself, there is less risk to the lender that you may default on the loan as you run the risk of having the asset repossessed and sold. Due to this reduced risk, the lender will typically offer you a more competitive interest rate than an unsecured car loan.

  • Interest rate type

You will also need to choose between a fixed rate car loan and a variable rate car loan, which can impact the overall cost of your loan. A fixed rate allows you to lock in the interest rate over the loan term, helping to protect your repayments from any rate fluctuations.

A variable rate loan is subject to market fluctuations, so if your lender cuts interest rates, your monthly repayments will be reduced. However, if they lift rates, your repayments will also go up, so you need to choose carefully between the two options.

  • New vs. used

While a new car may cost you more in terms of the vehicle's value, car loan lenders will typically charge low rates on average for this vehicle type. Used car loans may mean you borrow less from a car loan lender, but again, you may find yourself paying more interest over the life of the loan. Whatever the year of the vehicle, ensure you compare your interest rate options from a range of lenders.

Calculate your potential WA car loan repayments

Compare and save using our Car Loan Calculator

Calculate what your repayments could be on your car loan.

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What other features should you consider when comparing WA car loans?

With so many car finance options on the market, you might be feeling spoilt for choice. But it's important to compare all aspects of a loan product before making your decision.

Here are some of the most important factors to consider when shopping for vehicle finance in WA:

  • Interest rate: A car loan interest rate is the amount of interest that will be charged on the car loan amount.
  • Comparison rate: The comparison rate combines the loan's interest rate with any upfront or ongoing fees to provide a more accurate depiction of the overall cost of the loan.
  • Fees: The fees charged on a loan product will differ from one to the next. It's important to take note of all the fees payable, as a loan with a lower interest rate and high fees could ultimately be more expensive than a loan with a higher interest rate and low fees.
  • Fixed or variable rate: You will need to compare fixed interest rate and variable interest rate loans to decide what's right for you.
  • Secured or unsecured loan: If the car you want to buy is less than a few years old, you will generally have the option to use it as collateral on a secured car loan to access more competitive rates.
  • Loan term: The loan term is the length of time you will have to pay off the loan amount. Typically, a longer loan term means lower monthly repayments, but more interest charged over the life of the loan. Whereas a shorter loan term likely means more expensive repayments, but less total interest charged.
  • Repayment options: You may want flexible repayment options such as the choice between weekly, fortnightly, or monthly repayments. Or, perhaps you want the option to make extra repayments and/or access to a redraw facility.
  • Lender: Western Australian car dealerships will often have relationships with specific lenders, but it's important to consider whether that lender is the best choice for you. Comparing lenders can give you a better idea of what features suit your needs as a borrower, such as online banking, WA branch access and/or other facilities.

Are there benefits or disadvantages to getting a car loan in Western Australia?

It’s always worth comparing the benefits and risks associated with any financial product before you sign on the dotted line.

Benefits of a WA car loan

  • You gain access to a vehicle so you can more easily travel around Western Australia.
  • Making ongoing repayments over time can be easier for budgeting than saving up and paying a lump sum for a vehicle.

Risks of a WA car loan

  • Ongoing costs, like car insurance, are worth keeping in mind for your budgeting. Western Australia can be impacted by natural disasters, such as cyclones, earthquakes and bushfires. These can severely damage a vehicle and your insurer may not cover the damages. Some insurers also may not cover your vehicle for off-road driving, which is a popular way to travel in Western Australia.
  • You may pay more over the life of the loan in interest and fees than if you were able to save up and pay for the vehicle in full.

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

Frequently asked questions

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 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.

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 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.

What is an unsecured car loan?

An unsecured car loan is a loan that is not connected to a form of security, or collateral. Not all lenders provide unsecured car loans – and if they do, they generally charge higher interest rates for their unsecured car loans than their secured car loans.

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.

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 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.

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 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.

Does having a guarantor on a car loan lower your interest rate?

While it’s not necessarily a guarantee, having a guarantor on your car loan will improve your chances of having your application accepted, and may mean that you are able to attain a lower interest rate loan.

Having a guarantor with excellent credit history and/or is a property owner reduces the risk to the lender because the payments are guaranteed by someone who is considered to be financially secure and reliable.

As such, even if your credit history isn’t perfect, a guarantor may be able to help you secure a lower rate from some lenders.

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.

How do you get pre-approval for a Commonwealth Bank car loan?

You can apply for a CommBank car loan pre-approval online, over the phone or by visiting a branch. The steps to apply for CommBank car loan pre-approval are similar to any other car loan application and include the following:

  1. Consider checking your credit rating before applying for the loan. The lender uses your credit score and credit history to help determine your creditworthiness, and decide if you should be granted approval. Your credit score will likely also be used to determine what interest rate they are prepared to offer you.
  2. Gather all the required documents and your personal information. This should include proof of income, identity and residency.
  3. Review all the terms and conditions, interest rate and additional fees related to the loan to ensure it meets your requirements.
  4. Submit your application to CommBank for approval.

Commonwealth Bank will then review and confirm all your details and, if successful, offer you pre-approval. Once you receive the pre-approval for the car loan from Commonwealth Bank, you can start shopping around for a new car with the knowledge you have finances secured.

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.

What are loan repayments?

Loan repayments are the regular payments you make to pay off your car loan. Loan repayments generally occur on a monthly basis, although many lenders will also give you the option of making fortnightly or weekly loan repayments.

How to get a chattel mortgage?

Both businesses and individuals may use a chattel mortgage, provided that the car is being used predominantly for business purposes. 

To apply for a chattel mortgage, you need to first consider your options and choose a suitable lender that meets your requirements. Once you have selected a lender, you can apply for the loan online by filling out a form. If the lender doesn’t offer an online application process, you can either call them or visit their nearest branch. 

After you’ve applied, the lender will ask you to supply documents that confirm your identification, income, job profile, etc. If everything is in order, most lenders will arrange the loan’s settlement, so all you need to do is pick up your car!

Can you get a chattel mortgage with bad credit?

Getting approval for a chattel mortgage with bad credit may be possible, given ‘chattel’ (usually a piece of equipment or car) is put up as security for the loan. That means if you fail to repay the loan, the creditor can recover the loaned amount by repossessing and selling the car or piece of equipment. This differs from unsecured car loans, where the asset is not tied to the loan and cannot be taken if you don’t meet the repayments. 

Where can I get a guarantor car loan?

There are multiple lenders who are willing to provide loans secured by guarantors.

If someone is willing to go guarantor for you and they meet the requirements set out by lenders, you can apply for guarantor finance online, over the phone, or in person.

Some banks also provide guarantor car loans, though because they’re larger banks, they may have higher interest rates than smaller lenders.

You may want to compare guarantor car loans at RateCity, and find a guarantor car loan ideal for your purposes.

What is a bad credit car loan?

A bad credit car loan is a car loan for borrowers who have ‘bad credit’ or a bad credit history.

Some lenders refuse to offer bad credit car loans, because they believe there is an excessive risk that bad credit borrowers will not repay their loans. However, other lenders are willing to provide bad credit car loans.

Generally, these lenders charge higher interest rates for bad credit car loans than ‘prime’ car loans, reflecting the higher level of risk. Bad credit car loans may also have higher fees than prime car loans.

However, the big advantage of a bad credit car loan is that it allows borrowers with bad credit to access finance. Another advantage is that it could help bad credit borrowers improve their credit rating, assuming they make all their repayments on time.

Do I need good credit to get a car loan?

You don’t need good credit to get a car loan, although the worse your credit history, the harder and more expensive it’s likely to be.

Some lenders will do business only with borrowers who have good credit. However, there are other lenders that are willing to offer car loans to borrowers who don’t have good credit. The catch, though, is that they may charge higher interest rates and fees, and also require more paperwork.

If you don’t have good credit and want a car loan immediately, you can search for lenders that work with bad credit borrowers. If you are able to wait, you can work to improve your credit score and then apply for a car loan once you have good credit.