Your selected car loans
Got your eye on a new ride or looking to upgrade from your two door to a family car and need to borrow $40,000? Here at Mozo we compare a wide range of car loans from banks, peer to peer and online lenders.
Protect your credit score and get personalised help from an expert. Fido Finance does the comparing for you to help find top rate and repayment loan options from a range of trusted lenders. They receive high average review ratings by their customers. Getting in touch costs you nothing and commits you to nothing.
Fixed, Secured, No vehicle age limit, $5,000-$100,000
Get a competitive fixed interest rate on a secured used car loan of up to $100,000 depending on your credit score. No vehicle age limits. Easy online application. Fast pre-approval. Pre-approved funds held for up to 3 months. No monthly account keeping fees, no exit fees and no early repayment fees. Flexible weekly, fortnightly or monthly repayments on terms from 1 to 7 years.
Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.
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Your selected car loans
Including Demo, Fixed, Secured
Low fixed car loan rate for purchasing new and demo vehicles from dealers. There is no monthly or ongoing fees and early payout options available. Winner of Mozo's Experts Choice Car Loan 2021 award^. Good credit history. Stable employment history and Australian citizenship or PR required.
Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 8.39% would cost $37,714.40 including fees.
Read reviews and learn more about loans.com.au car loans
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Fixed, Secured, $5,000-$100,000
Get a competitive fixed interest rate on a secured new car loan of up to $100,000 depending on your credit score. Easy online application. Fast pre-approval. Pre-approved funds held for up to 3 months. No monthly account keeping fees, no exit fees and no early repayment fees. Flexible weekly, fortnightly or monthly repayments on terms from 1 to 7 years.
Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.
Read reviews and learn more about OurMoneyMarket car loans
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Fixed, Secured
Get a fixed rate car loan for amounts over $20,000 with Police Credit Union. Make additional repayments at any time without penalty. Free online redraw. Available for new and used cars. Can also be used for motorcycles, boats, caravans, trailers or any registrable vehicle.
Repayment terms from 1 year to 5 years. Representative example: a 5 year $30,000 loan at 6.48% would cost $35,497.21 including fees.
Read reviews and learn more about Police Credit Union car loans
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Mozo has partnered with one of Australia’s leading car finance brokers, Fido Finance, to help you find a car loan match.
Sound good? To get started, simply provide a few details on what you’re looking for and Fido Finance can help you lock in a great car loan rate.
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The best car loan for your needs will depend on a range of factors, such as the age of your car, what sort of flexible loan features you're after and the amount you want to borrow.
Just like personal loans, there's a huge range of car loans out there vying for your attention from a range of bank and non bank lenders. One sure way to find out whether the best car loan for you would be a low rate loan that does the job for less, or a jam-packed one with plenty of features... is to read this guide!
If you've done a little car loan comparing already, you may have seen the terms "fixed rate" and "variable rate" scattered about. Don't just pick one at random though, as your choice can majorly influence how many dollars you end up paying back in interest or fees. Ultimately, the rate type you opt for should depend on how you intend to use your car loan.
Let's look at fixed rate car loans first, where the interest rate is guaranteed to stay that way for the entire loan term. So long as you follow your loan repayment plan, you will know exactly how much money will go to your provider in interest. On the downside, most fixed rate loan providers charge a fee when the total loan amount is repaid early, and many have limits on how much extra you can repay. This is why, when choosing a fixed rate loan, it's important to select a term that aligns with how many years you want to spend paying off your loan.
Unlike the stability that comes with fixed rate car loans, the interest rate with variable rate loans can change over the course of your loan term in or against your favour. Don't let that put you off, as they will rarely involve early loan repayment fees. So if your budget can handle a slight rate change, plus you want the opportunity to clear your debt whenever it suits, a variable rate car loan could right for you.
Many car loans come with convenient features to make your life easier while paying them off, such as optional additional loan repayments and redraw facilities. Below is a run through of these aspects and more that you'll find in a top car loan.
We could go on and on about why the interest rate is important when you take out a car loan, but instead we'll run you through the following scenario...
Sarah has just secured her full licence after learning how to drive in her parent's car. Now she has a stable income, Sarah's ready to take out a car loan and buy one of her own. But which one should she choose?
Using Mozo's car loan comparison table, Sarah compares loans from a range of bank and non bank lenders against a car loan from her current banking provider. She soon narrows down her choices to a competitively priced loan from a new lender vs sticking with her current bank. Both have the features she's looking for in a car loan, like the flexibility to choose how frequently she can make repayments.
Say Sarah picks old favourite with a 12.74% interest rate on offer. She'll hand over $15,488 in interest for her $30k car loan over a 7 year loan term (on a monthly loan repayment plan). On the other hand, ditching bank loyalty and going for one of the lowest rates at the time of writing of 5.14%, means she'll fork out $9,705 less. It just goes to show you how much that one number can affect your hip pocket!
Individually, monthly fees and signup costs may appear small, but they really do add up. One easy way to factor in all the costs involved with a potential car loan product, is to look at the comparison rate. This rate type is made up of overheads like the headline rate, application and ongoing fees.
Just remember, that even if you settle on a car loan with low fees, most providers will bill you more for making a late repayment.
Whether or not a car loan needs to have a minimal or no early loan repayment penalty will depend on who you ask and the interest rate you choose. Some people like sticking to the original loan repayment schedule as it suits their financial situation best, while others prefer keeping their early loan repayment options open.
If making extra repayments suits your style and you use the feature efficiently, you'll end up paying less in interest, as the rate is only applied to how much you owe.
Another top car loan feature is none other than having a nifty redraw facility to dip into extra repayments. You can use a redraw facility to pay for things when other life expenses crop up, then make extra loan repayments when you have cash to spare.
Keep in mind that some providers set redraw minimums and have redraw fees, which may cost more than what the flexibility is worth to you. Also we should mention that generally speaking redraw facilities only come with variable rate loans.
Written by: Kelly Emmerton, Mozo Money Editor
Finding the right loan to finance your next vehicle can sometimes be a bit overwhelming, especially with so many options available from a variety of lenders. This guide runs you through all the car loan essentials and FAQs so you can catch up on everything you need before you take out a car loan.
On your search for your car loan you’ve probably heard the terms “unsecured” versus a “secured” car loan and there is a big difference between the two, so it’s worth knowing what each means. Essentially, it can affect how much interest and even the amount of fees you pay towards your car loan.
Secured car loan
If you are borrowing $40,000 for a new car, a secured car loan is a likely option. A secured car loan is a loan where you, the borrower uses collateral, such as the car, as security. Many lenders will only offer secured loans for new cars or cars less than three years old. While putting your new car up as collateral may seem daunting, secured loans usually have lower interest rates, and a lower rate means you can put more money into paying back the loan faster, which can end up saving you money over the life of your car loan.
Unsecured car loan
Alternatively, borrowers have the option of taking out an unsecured car loan, meaning you don’t need to put up any assets for security. Unsecured loans are generally used when buying a used car, and you might be looking at a lower amount, for example a $10,000 car loan. Usually, unsecured loans have higher interest rates than secured loans but they can have features like free extra repayments so if you have the ability you can pay the loan off faster to save on interest.
Not only do Australians have the choice between a secured or unsecured car loan, depending on the lender you’ll also have an option to choose between a fixed or a variable interest rate. The interest rate on your car loan is a factor that determines how much you’ll repay each month or fortnight, so you must figure out whether you’d prefer to lock one down or open yourself up to potential spikes or falls.
Fixed rate car loans
If you’re borrowing $40,000 for a car, knowing how much your loan repayments will be each month could be a good option. Fixed rate loans mean that your repayments don’t change month on month, making it much easier to budget. These days, many fixed rate loans also allow the option to make additional repayments so if you do find that you’re able to pay out the car loan early, you won’t be hit with high fees.
Variable rate car loans
Right now, interest rates are at record lows but could you afford it if you borrowed $40,000 and the interest rate jumped? This is the risk you take with a variable interest rate. The good news is that with variable rate loans, you’ll get lots of flexibility so you can pay back the loan faster, or switch car loans if you do find the interest rate or fees on the loan are creeping upwards.
Not all car loans are the same, and you'll likely have very different monthly repayments on a $40,000 loan than you might on a $20,000 car loan. Different factors like your loan term, interest rate and any additional fees will determine what your monthly repayments are. When considering a car loan, make sure you keep an eye on competitive fixed and variable rates so that you can get a rate that suits you while avoiding paying too much on interest every month.
If the numbers are what you are after, jump over to our car loan repayment calculator to get a better idea of what you your monthly repayments could be.
If you’re prepared to borrow $40,00 to fund your new car dreams, the biggest cost saving features of your car loan is to choose a loan with a low interest rate and low fees. The less you pay in these, the faster you’ll be able to pay down the loan.
Other features to look for include:
Yes! These days most lenders want you to apply for your loan online. Not only is it easier, but potentially you could get a get a response within a few hours and the funds deposited into your account the next day, depending on the lender.
Before applying make sure that you gather everything you’ll need for you application, such as:Yes, like on a regular personal loan or home loan, lenders will check your credit history and previous borrowing behaviour when assessing your eligibility.
It is a good idea before you make any loan application that you check your credit score to make sure that there isn’t any issues that would affect your loan from getting approved. See our guide on how you can improve your credit score if you are wondering about the things that lenders will be looking for.
While many lenders now offer tiered interest rates and each lender will have their own criteria for loan funding.
Most lenders will have minimum and maximum loan amounts, regardless of whether they are a big bank or not. In some instances, smaller lenders, online banks or peer-to-peer lenders might have better rates for larger loan sizes, that’s why it is so important to shop around.
With car loans, loan terms generally range from 1 to 7 years. Keep in mind, that you pay interest throughout the entire life of your loan, so the longer your loan the more you contribute to interest repayments.
All lenders will want to make sure that you’ll be able to pay back the loan amount borrowed so make sure that when you are deciding on a loan term, you choose one that is realistic for you. You don’t want go for a small time period and find yourself too stretched. Sometimes it is better to opt for a longer loan term, but whenever you can make extra repayments so that you shorten the amount of time it takes to pay the loan back in full.
So sit down, take a good look at your financial position and be realistic on how long it would take you to comfortably pay back $40,000. A good place to start is with Mozo’s budget calculator.
As the name suggests car loans are specifically designed for the purchase of a motorised vehicle and often they have to be secured against the vehicle. But, that’s not to say that you couldn’t take a personal loan to pay for your car.
A personal loan may be beneficial if you only want to use part of it to finance your car and your own savings for the rest.
With so many options on the market, don’t settle for the first loan you see. Take the time to compare car loans so that you don’t fall into a trap that could cost you hundreds of dollars!
Poor service misleading advice, do not waste your time
Read full reviewPoor service misleading advice, do not waste your time
The staff at RACQ bank are extremely accommodating. Products and Services are hassle free and communication is prompt and helpful. I am coming to the end of my 5 year loan term and would definitely use their services in future.
Read full reviewThe staff at RACQ bank are extremely accommodating. Products and Services are hassle free and communication is prompt and helpful. I am coming to the end of my 5 year loan term and would definitely use their services in future.
One of the worst finance provider. They offered me 24% interest rate for a car loan, while RACV offered 10%. Clearly they are just here to rob people
Read full reviewOne of the worst finance provider. They offered me 24% interest rate for a car loan, while RACV offered 10%. Clearly they are just here to rob people
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