Australia’s Best Car Loans for August 2022

woman smiling in a yellow car knowing best car loans in australia

Finding the best car loan is no easy feat.

Last month saw a steady rise in interest rates across the board, as the RBA has continued its campaign to ‘curb inflation’. In a market with high demand and disruptions to supply, just getting a hold of a car is enough of a challenge - then comes getting finance. 

Though rates have begun to shift upwards, the good news for car buyers looking to finance their purchase is that car loan interest rates have experienced a reasonably small uptick. The average rates in the Mozo database are 6.24% for a new car loan and 6.82% for a used car loan. There are still rates starting with ‘3’ for hybrid and electric vehicles, with green loans being some of the lowest rate options in our database.

But with so much competition around, how can you narrow down your choices to find a great car loan match? Features like a low interest rate, low fees and payment flexibility might tick a lot of boxes, but there’s no simple answer when it comes to finding the best car loan - that will come down to your own needs and financial situation.

Below we have rounded up a range of different loan options. These include some of the best car loan winners from our 2022 Mozo Experts Choice Awards^, plus winners from our 2022 Mozo People’s Choice Awards for Banking and a few of the car loans which have recently caught the eyes of the Mozo editors.

Best car loans for August 2022

Expert recommendations: Mozo Experts Choice Award-winning best car loans


Throughout last year our team of in-house experts assess a range of banking and financial products as part of the Mozo Experts Choice Awards^, including car loans. For the 2022 Mozo Experts Choice Personal Loan Awards our judges analysed 338 personal loan products from 82 Australian financial institutions based on data in Mozo’s product database, naming winners in categories such as best New Car Loan, best Used Car Loan and best Green Car Loan. Here are some of those award winners:

Best Used Car Loan

OurMoneyMarket - Car Loan
  • Fixed rates from 6.25% p.a. (6.87% p.a. comparison rate*)
  • No monthly fees
  • Extra repayments allowed

Online lender OurMoneyMarket’s Car Loan impressed our judges enough to be named a best Used Car Loan winner in the 2022 Mozo Experts Choice Awards^. Borrowers will be able to access fixed rates from 6.25% p.a. (6.87% p.a. comparison rate*) depending on their credit history, and they won’t need to worry about forking out any monthly service fee. There is an application fee that can vary from $250 to 1.5% of the loan size. Loans can be taken out over a 1-7 year period with a borrowing range of $2,001 and $75,000, and OurMoneyMarket customers can make extra repayments towards their loan.

Heritage Bank - Car Loan
  • Fixed rates from 5.39% p.a. (6.03% p.a. comparison rate*)
  • Make extra repayments for free
  • Borrow up to $100,000

Heritage Bank’s Car Loan was named by our judges as a 2022 Mozo Experts Choice Award^ winner for best Used Car Loan - and with a competitive fixed interest rate of just 5.39% p.a. (6.03% p.a. comparison rate*), it’s not hard to see why. With amounts from $5,000 - $100,000 available, the loan could be used to fund vehicle purchases big and small, and loans can be taken out over 1-7 years. Borrowers will also be able to make extra repayments towards their balance to pay it off faster. The loan does come with a $200 application fee and $5 monthly service fee, but it was judged as one of the best value loans in our database even with those costs.

Best Green Car Loan - Clean Green Car Loan
  • 4.99% p.a. (5.54% p.a. comparison rate*)
  • Loans from $5,000 to $100,000
  • Special rate discounts for homeowners

In the market for an electric or hybrid vehicle? Well you may want to get to know the Clean Green Car Loan from - winner of our 2022 Mozo Experts Choice Award^ for best Green Car Loan. The loan can be used to purchase eligible electric and hybrid vehicles, with loan amounts ranging from $5,000 to $100,000 and terms from 3-5 years. The Clean Green Car Loan also features a fixed interest rate of 4.99% p.a. (5.54% p.a. comparison rate*), plus homeowners can access even lower rates, starting at 4.14% p.a. (4.68% p.a. comparison rate*) (conditions apply). While borrowers won’t have to worry about paying any ongoing service fee, there is a $400 application fee to consider.

Best Excellent Credit Used Car Loan

Wisr - Secured Car Loan
  • Fixed rates from 6.34% p.a. (7.18% p.a. comparison rate*)
  • Flexible repayment options
  • Borrow between $5,000 and $79,000

One of just two winners in our Excellent Credit Used Car Loan^ category, the Secured Car Loan from Wisr features fixed rates starting from 6.34% p.a. (7.18% p.a. comparison rate*) for borrowers with a top-notch credit history. Car buyers can borrow $5,000 to $79,000 with  loan terms of 3, 5 and 7 years. One of the benefits of the loan is that there’s no ongoing service fee to add to your costs, though the upfront establishment fee is $605 for refinance and dealer sale, or $655 for private sale. Wisr also offers its Secured Car Loan customers the flexibility to make their repayments on a weekly, fortnightly or monthly basis, and extra repayments can also be made.

Customer Favourites: Best car loans from Mozo People’s Choice Award winners


For the Mozo People's Choice Awards, we ask everyday Australians about their own banks, energy providers and insurance companies in order to help reveal the country’s favourite financial and household service providers. Participants are asked to rate their providers on everything from trust, satisfaction, customer service and whether or not they’d recommend them to friends or family. Take a look at some of the 2022 winners for Banking and the car loan options they have on offer:

Bendigo Bank Secured Personal Loan
  • 7.79% p.a. (8.51% p.a. comparison rate*) fixed interest rate
  • Flexible repayment options
  • Make extra repayments and redraws
Find out more

Bendigo Bank was named a three-time winner in our 2022 Mozo People’s Choice Awards, taking out wins in the Outstanding Customer Satisfaction, Excellent Customer Service and Highly Trusted categories. This loan comes with a fixed rate of 7.79% (8.51% comparison rate*), with eligible car buyers able to borrow amounts from $2,000 and up over terms of 1-7 years. There is a $250 application fee to budget for, as well as a $5 monthly service fee. You can select your repayment schedule, as this loan offers weekly, fortnightly or monthly instalments. Bendigo Bank also gives customers the option of making extra loan repayments, and there’s even a redraw facility available.

Heritage Bank Car Loan
  • Fixed rates from 5.39% p.a. (6.03% p.a. comparison rate*)
  • Flexible repayment options
  • Make additional repayments and redraws

Heritage is popular with its customers, winning 2022 Mozo People’s Choice Awards for Excellent Customer Service and Highly Trusted. Heritage Car Loan may also prove a hit with new car buyers, as it offers a competitive fixed rate of 5.39% p.a. (6.03% p.a. comparison rate*) for a $5,000-$100,000 loan with terms between 1-7 years. There is a $200 application fee and a $5 service fee, though. Extra repayments and redraws are both available, and borrowers can choose between weekly, fortnightly or monthly payments.

Editor’s pick of the month: best car loan deals on Mozo in August


If you’re interested in comparing even more options, our editors have wrapped up a selection of car loan deals from our partners which really stood out to them. Of course, you can also expand your search further on our car loan comparison hub where you’ll be able to browse through the 180+ car loans being tracked in the Mozo database.

Special home owner rates - New Car Loan
  • Low variable rates from 4.24% p.a. (4.78% p.a. comparison rate*)
  • Special rates for home owners
  • Borrow up to $100,000

With a fixed rate of 5.69% p.a. (6.24% p.a. comparison rate*), is already offering one of the most competitive rates in our database with its New Car Loan. Homeowners can also qualify for a lower variable rate, starting at low variable rates from 4.24% p.a. (4.78% p.a. comparison rate*) available to eligible borrowers (conditions apply). The New Car Loan has loan amounts from $5,000 up $100,000 available, though borrowers will need to pay their loan back over a term of 3 to 5 years. And while there are no monthly or annual services fees to worry about, the New Car Loan does come with a $400 application fee.

Special member offer

Used Car Loan (Fixed, Secured)
  • Fixed rates from 7.99% p.a. (8.60% p.a. comparison rate*)
  • NRMA members receive 1% p.a. off the applicable interest rate
  • Make extra repayments
Find out more

For members with NRMA, this second-hand car loan might be worth a look. Fixed rates from 7.99% p.a. (8.60% p.a. comparison rate*) are determined using risk-based pricing, and can be even more appealing to NRMA members, who can receive 1% p.a. off the applicable interest rate. Loans start at $5,000 and loan terms can be between 1-7 years. There is a $499 application fee to keep in mind. There is also a $325 early repayment fee (no fee payable in the last 6 months of the loan term) to consider if you were thinking of paying off your loan early.

Most common FAQs about car loans

What kind of car loan can I get?

When comparing loans you’ll notice that there are different types of car loans available based on the type of car you’re buying and how you want to secure the loan. These distinctions are important - not only so you can identify the type of loan that’s right for your situation, but because they can impact the interest rate you receive.

  • New vs used car loans - On the surface the difference between new and used car loans is pretty obvious: new car loans are used to finance new car purchases while used car loans are for the purchase of second-hand cars. But it’s worth knowing that new car loans typically come with lower interest rates than used car loans. 
  • Secured vs unsecured - If you opt for a secured car loan your vehicle will be used as collateral against the loan, so if you default, your lender will be able to take possession of the car. Unsecured loans, as the name suggests, don’t require security. However, because unsecured car loans are deemed riskier by lenders, the interest rates offered with them tend to be higher.
What are the best car loan features I should look out for?

When searching for a loan it can help to identify the car loan features which will help you best achieve your goals. Aside from actually buying a vehicle, these could include making sure that your loan costs are as low as possible, or paying off your loan as quickly as you can. To do that, you may want to find a loan that offers:

  • A low interest rate: The lower the interest rate, the lower your repayments will be. Though it’s always worth looking at the comparison rate too, because this also takes into account fees and other costs attached to the loan. 
  • Low or no fees: Similar to nabbing a low interest rate, finding a car loan with low fees or even zero fees can help you reduce your overall costs. 
  • Repayment flexibility: Repayment flexibility can mean different things. It could mean being able to make repayments on a schedule that suits your budget (e.g. weekly, fortnightly or monthly), or it could be having the option of making extra repayments towards your balance so you can pay it off faster. 
  • Loan term: Car loan terms typically range from 1-7 years. Striking the right balance when choosing a loan term can be important, because while you may need to make larger repayments on a shorter loan term you’ll also reduce the amount of total interest you pay (assuming rates are the same).
What’s best, a fixed rate or a variable rate car loan?

The best type of interest rate to opt for with a car loan will depend on your own needs. For instance, if you want to know exactly how much you’ll need to make in terms of loan repayments then a fixed rate may be a good choice. Otherwise if you’re happy to be more flexible and make the most of any interest rate drops that come about, a variable rate may be what you’re after. Of course, interest rates can always jump higher too.

Which bank has the best car loan rates?

Because of the fluctuating nature of interest rates it’s difficult to highlight any one loan which has the lowest (or ‘best’) interest rate. After all, lenders can change their interest rates at any time, so a rate that’s competitive one week may not be the next. 

And not every borrower will have access to some of the lowest rates on offer. For example, many lenders offer personalised rates based on a customers’ credit history, which is why you may see an interest rate range, rather than a single rate, next to a car loan.

Can I refinance my car loan to a better rate?

Yes, in many situations you will be able to refinance your car loan to another lender. However, you’ll have to weigh up whether it’s worthwhile. While you may be able to reduce your repayments by switching to a loan with a lower rate, you’ll need to factor in the costs of switching, including any exit or break fees with your existing lender or application fees with your new lender. If you are interested in making the switch, check out our dedicated refinance car loan comparison table to compare offers.

How can I get the best deal on a car loan?

There’s no single best car loan deal out there - it’s all about what you want as a borrower. That’s why taking the time to figure out which type of loan you need, the features you want, and then comparing a range of options can be a good way of finding the ‘best’ loan for you. As the team at ASIC’s Moneysmart says, “Most people shop around before they choose a car. You should also shop around before you choose a car loan. It can save you thousands in interest and help you pay off your car faster.”

Comparing award-winning car loans - like the ones we’ve laid out above - could be one place to find a great value loan, otherwise if you’re ready to cast your eyes over even more offers then why not head on over to the Mozo car loan comparison hub where you can compare over 180 different car loans.

Are these car loans best for me?

We have provided some of our editor’s picks and information about products which have got Mozo’s tick of approval through the Mozo Experts Choice and Mozo People’s Choice Awards. At the end of the day though, you will need to consider your own priorities and financial needs in order to identify which options are best for you. Be sure to read the information provided on a product issuer’s website before making a decision.

* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

^See information about the Mozo Experts Choice Personal Loan Awards

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