Australia’s Best Car Loans for December 2024
Thinking of buying a new car in 2025? You’re not alone in wanting to switch things up. Uptake for new car loans is on the rise as the cost of living stings consumers, and it’s more important than ever to secure the best deal on your car loan.
Following on from a series of cash rate hikes, car loan interest rates have also been climbing. Though not as fast as rises in interest rates across other borrowing categories, car loan rates are not as low as they once were. The average rate in the Mozo database is currently 7.56% for a new car loan and 8.07% for a used car loan.
With so many options on the market, 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 Mozo Experts Choice Awards^ in 2025 and a few of the car loans which have caught the eyes of the Mozo editors.
Best car loans for December 2024
Editor’s picks of the month: best car loan deals on Mozo in December
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.
Fast online application
Revolut Car Loan
- Fixed rates from 6.56% p.a. (6.56% p.a. comparison rate*)
- Flexible repayment terms
- Fast online application process
Get on the road with competitive fixed rates for borrowers on 1-7 year loans from $5,000 up to $50,000. There are $0 monthly fees to pay and no early repayment fees if you choose to pay off your loan sooner. There’s a fast application process on the Revolut app and according to Revolut and subject to loan approval, you'll receive your money into your Revolut account straight away. Eligibility criteria applies.
No borrowing limit
RACV – New Car Loan
- Fixed interest rates from 6.99% p.a. (7.70% p.a. comparison rate*)
- Flexible repayment options
- No maximum borrowing limit (T&Cs apply)
Take the wheel with the RACV new car loan, with low fixed interest rates starting from 6.99% p.a. (7.70% p.a. comparison rate*). With borrowing amounts starting from $5,000 and with no maximum limit (T&Cs apply), this loan offers terms between 1-7 years and flexible repayment options. There is a $499 application fee, but no ongoing or maintenance fees. You’ll get fee-free extra repayments, but there may be a fee for exiting your loan early (2% of your loan balance or $205 minimum) if you finish paying it off in the first 75% of the loan term.
No monthly service fees
OurMoneyMarket - Car Loan
- Fixed interest rates from 6.57% p.a. (7.19% p.a. comparison rate*)
- No monthly service fees, early or extra repayment fees
- Advertised 4 minute application process
OurMoneyMarket claim that their loan applications take an ultra-fast 4 minutes, taking place entirely online (no printing required). Borrowers will be able to access fixed rates from 6.57% p.a. (7.19% p.a. comparison rate*) depending on their credit history, and they won’t need to worry about forking out a monthly service fee. There is an application fee that can vary from $250 to 1.5% of the loan size, whichever is larger. Loans can be taken out over a 1-7 year term with a borrowing range of between $5,000 and $100,000, and OurMoneyMarket customers can make extra repayments towards their loan.
Expert recommendations: Mozo Experts Choice Award-winning best car loans
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Throughout last year our team of in-house experts assessed a range of banking and financial products as part of the Mozo Experts Choice Awards^, including car loans. For the 2023 Mozo Experts Choice Personal Loan Awards our judges analysed 250 personal loan products from 86 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
Heritage Bank - Car Loan
- Fixed rates from 6.69% p.a. (7.04% 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 2025 Mozo Experts Choice Award^ winner for best Used Car Loan - and with a competitive fixed interest rate of just 6.69% p.a. (7.04% 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. Must be 18 to apply.
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.
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.