$5,000 Car Loans

On the hunt for a $5,000 car loan? Mozo can help you out. Whether you’re looking to buy your first car or a used one, we compare loans available from a range of Australia’s bank and non-bank lenders, so you can find the best car loan for your needs.

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How can Mozo help me to compare car loans? 

Every day Mozo’s team of data experts track the interest rates of banks and lenders of car loans and put them on our website for you to compare. Our database comprises car loans from a range of lenders including big banks, mutual banks and peer-to-peer lenders. 

Simply plug a few details like your desired loan term into our comparison tool and we’ll give you a listing of loans, along with an estimated monthly repayment amount which can help you to determine whether you can afford the repayments. 

Can I apply for a car loan on Mozo?

Mozo doesn’t offer its own car loans, but we can connect you direct with lenders that do offer car loans. Most of the lenders that we have listed on our website have online applications so you’ll be able to apply within minutes of leaving our site.

What can I use a $5,000 car loan for? 

On a tight budget but need to drive to and from work regularly? A $5,000 car loan may be just what you’re after. This loan is a good pick for those looking for a ‘bare minimum’ car - no fancy additions or sparkly exteriors, but it’ll do just fine getting you from one place to another! So if you’re looking to minimise your expenses or you’re saving up for other expensive purchases down the track, then a $5,000 loan may be a good fit. 

And if a new car depreciates the second you put pen to paper, it might make more sense to you to buy a cheaper or second-hand model. You may be kissing the enticing ‘new car’ smell goodbye, but you can sleep well knowing you’re saving big bucks in the long run. 

What features do $5,000 car loans offer? 

The kinds of features a $5,000 car loan offers would vary from provider to provider, so it really depends on your needs. For example, if you’re looking to pay the loan off as quickly as possible and minimise your interest bills, a car loan with the option to make free extra repayments would suit you well. Other features to look out for include early repayment penalties and whether there are any fees attached.

Where can I compare $5,000 car loans? 

Finding a low rate $5,000 car loan can mean saving hundreds of dollars in interest over the life of your loan - that’s a whole lot of money going straight into your pocket to cover other expenses like car insurance. So how can you compare interest rates to find the best deal for you? It’s easy, and one great way to get started is right here on Mozo! Look at our comparison table below to get started.

$5,000 car loan comparisons on Mozo  - page last updated November 13, 2019

interest rate
comparison rate*
monthly repayment**

I want to borrow

years

  • mozo-experts-choice-2018

    4.89% p.a.

    5.44% p.a.based on $30,000
    over 5 years

    Terms from 3 to 5 years. Representative example: a 5 year $30,000 loan at 4.89% would cost $34,277.58 including fees.

      Compare
    Details
  • 4.69% p.a.

    6.03% p.a.based on $30,000
    over 5 years

    Terms from 3 to 7 years. Representative example: a 5 year $30,000 loan at 4.69% would cost $34,752.17 including fees.

      Compare
    Details
  • mozo-experts-choice-2018

    4.19% p.a.

    4.73% p.a.based on $30,000
    over 5 years

    Terms from 3 to 5 years. Representative example: a 5 year $30,000 loan at 4.19% would cost $33,704.30 including fees.

      Compare
    Details
  • 5.50% p.a.

    5.85% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 5.50% would cost $34,632.09 including fees.

      Compare
    Details
  • 4.89% p.a.

    5.44% p.a.based on $30,000
    over 5 years

    Terms from 3 to 5 years. Representative example: a 5 year $30,000 loan at 4.89% would cost $34,277.58 including fees.

      Compare
    Details
  • 6.79% p.a.

    7.16% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 6.79% would cost $35,729.09 including fees.

      Compare
    Details

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*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. WARNING: 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.

**Representative example figures and monthly repayment figures are estimates only, based on the advertised rate, mandatory fees, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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Car loan resources

Reviews, news, tips and guides to help find the best car loan for you.

Finding the best-value $5,000 car loan

If you’re on the hunt for a car loan, the good news is that if you need to borrow $5,000 there are a wide range of banks and lenders that will have loans available in your price range. 

When choosing between lenders you’ll want to compare a range of things from the interest rate, fees and features of the loan. You might find that if you are only borrowing $5,000 you might need to take out an unsecured car loan. Secured car loans are a popular choice but often can only be used when you are buying a new car or a car that is less than 3 years old. And if you've got your eye on a new car, you're often looking at a higher loan amount, so you might want to check out our page about $40,000 car loans.

In this guide, we’ll run through the key info you need to know and understand about borrowing money for a car, the key features of loan and what information you’ll need to apply and get approved. 

Types of interest rates 

Like personal loans, car loans come with either fixed or variable interest rates, but the ideal one for you will depend on your financial situation, as each comes with its own set of pros and cons. 

If you don’t want any budget surprises, opting for a fixed rate car loan could be the better choice. With a fixed rate $5,000 car loan, you will know exactly how much interest you’ll be paying each month and over the entire loan period. 

Keep in mind that with fixed interest rate loans, there is usually a fee if the total loan amount is repaid early and many providers also put caps on how much extra you can repay during the loan term. If you’re going with the fixed rate option, make sure you choose a term period that will allow you to pay off the loan comfortably. Just remember that the longer the loan term, the more interest you will pay.  

If you’re budget is more flexible, you might want to consider a variable rate loan. These loans are often cheaper than their fixed rate counterparts and have more flexible features like free repayments and no early repayment fees which means you’ll have the freedom to clear your debt whenever you like. 

Choosing the best loan term 

When you’re taking out a car loan for $5,000, the term period - how long you choose to pay off the loan - may not seem like a big deal, but it can really influence how much you end up handing over to the lender. 

A shorter loan period will usually cost you a lot less all up, as long as you can afford the monthly repayments (and make them on time). 

Not convinced? Let’s break it down for you in an example. 

Sophie has just gotten her full-time licence and now wants to buy a cheap car that will get her to work every morning. If she decides to take out a $5,000 loan over 3 years at an interest rate of 7%, Mozo’s car loan repayment calculator shows she would be paying $154 every month and $558 in total interest. 

Meanwhile, if she takes out the same $5,000 car loan over 5 years, she could expect to make lower repayments of $99 every month but pay a considerably higher $940 in interest - that’s almost twice as much as the first scenario! 

In other words, the faster you pay off your car loan, the less interest you’ll have to pay in the long run. However, the tradeoff is you’ll also have to factor in larger monthly repayments. 

Ways to reduce loan repayments when borrowing $5,000

Taking advantage of some features offered by car loans could help to slim down your repayments. Here are a few to keep an eye on:

1. Low interest rate

If you’re looking to snatch up a good deal, lower interest rates can make a huge difference. 

Let’s take a scenario where Jim is a university student looking to buy his first car and taking out a loan for $5,000. Using Mozo’s car loan comparison calculator, he compared the interest rates of two car loan products - one with a 10% interest rate, a family favourite, and the other with a 5% interest rate. 

Say Jim goes with the first loan. He would be paying $1,374 in interest over a 5 year loan period, whereas if he ditched bank loyalty for a lower interest rate loan, he would save $731. That’s money going straight into his pocket, not the banks. 

If you’ve already done some research on car loans, you may have also encountered the terms ‘secured’ and ‘unsecured’. Secured loans tend to come with the benefit of lower interest rates, as they require the borrower to use an asset - typically the car itself - as collateral. This gives your lender the security that if you can’t meet your repayments, they’ll be able to take back your car and resell it.

But keep in mind that if you’re looking to purchase a used car with a $5,000 loan, secured loan options may be limited, which makes sense given the higher risks associated with cars that have already driven quite a few kilometres on the road. For example, there are some secured rate car loans in our database that you'll need to borrow at least $20,000 to be eligible for.

2. Low or no fees

There are usually some upfront fees to pay when you take out a new car loan such as a loan establishment fee. You will pay these upfront at the start of the loan period. Other fees, like monthly fees will get added to your repayments and these can add up. This is why it is important when shopping around for a car loan to not only look at the headline interest rate. It’s important to look at the comparison rate as this rate includes fees and charges as well as interest which gives you a true indication of the cost of the loan. 

3. No early loan repayments penalty

This really only applies if you’ve taken out a fixed rate loan. Some lenders will have an early repayment penalty if you pay out the loan earlier than the original loan agreement. 

4. Extra repayments

One month, you may decide to eat out three times less than usual and spare an extra $160 in funds. Rather than keep this in your savings account, you can put those funds towards paying down the loan. Interest on your loan is calculated daily so the more you can put towards your loan each month, the less interest you’ll pay and the quicker you’ll be able to pay off the loan. 

Written by: Katherine O’Chee, Mozo Money Writer


More FAQs

I need $5,000 for a motorbike, do I get a car loan? 

Yes, you can apply for a car loan for any type of vehicle whether for a Vespa scooter, motorbike or small car. 

If the loan amount is too small for a specific car loan, then it is likely that you would be able to take out a personal loan

If I have bad credit, can I get a $5,000 car loan? 

You may still be able to take out a $5,000 car loan with a bad credit rating but you can expect less options and higher interest rates than someone with a good rating. 

Before applying for a car loan, it is a good idea to make sure that you are demonstrating good money habits to potential lenders. This means, making bill payments on time, checking your credit report to make sure that there are no mistakes or missing information that might affect your chances of getting approved and demonstrating that you can live within your means. Lenders want to be confident that if they are going to lend you money that you will pay back the funds on time and in full. Do a repayments road test prior to taking out the car loan to make sure that you will be able to meet the repayments easily. 

See our guide here on how you can avoid making mistakes that could hurt your credit score further

I have no credit history, can I still get a $5,000 car loan?

If you’re a younger driver just starting to find your way around personal finances, it’s possible you may have never had a credit card or personal loan before. As a result, you could run into the trouble of having a low credit score because you’ve never borrowed money before. But this shouldn’t exclude you from being approved for a loan. 

Lenders will still want to see proof of income, proof of savings and they might even check things like your mobile phone bill or Afterpay account to see that you make repayments on time and in full. 

Before taking out a $5,000 car loan you want to be confident that you can meet the repayments comfortably. And remember that you don’t just need to factor in the initial cost of the car, you’ll also need additional funds for things like petrol, car insurance and car maintenance.  

Are there calculators to help me compare car loan repayments? 

Knowing how much you’ll need to repay is just a click away! Punch the numbers into Mozo’s car loan repayment calculator, or if you’re looking to compare $5,000 car loan deals to see which will best suit your budget, try out our car loan comparison calculator.

How do I apply for a $5,000 car loan? 

Preparation first - gather all your documents including 100 points of ID, proof of income, and details of your assets and liabilities. You’ll need to have a clean credit record, although bad credit doesn’t necessarily close all your options. 

You can apply for most $5,000 car loans online, and approval can take as little as a few hours or even minutes. Alternatively, you could visit a local branch of your chosen provider (if they have one) or call its customer service hotline. 

Keen to apply today? Head back to the top of this page and click on the “go to site” button next to the $5,000 car loan of your choice. Those new wheels could be in your hands before you know it!

Car Loan Reviews

ANZ
ANZ Car Loan review
Overall
5/10
Better banks out there.

Very terrible in branch service, long waiting lines and limited people at the branch.

Very terrible in branch service, long waiting lines and limited people at the branch.

Price
6/10
Features
5/10
Customer service
4/10
Convenience
1/10
Trust
5/10

Jill | Victoria

reviewed about 6 hours ago

Greater Bank
Greater Bank Car Loan review
Overall
10/10
Friendly and personal customer service

Pros: Great personal customer service, an old fashioned meeting with the Bank Manager, a...

Pros: Great personal customer service, an old fashioned meeting with the Bank Manager, a conversation about why you want the loan, helpful information and advice about the best options the Bank can offer and a friendly phone call from the same Manager to advise that the loan has been approved and is in your account. Cons: None that I can think of!

Price
10/10
Features
-1/10
Customer service
10/10
Convenience
10/10
Trust
10/10

Julie | New South Wales

reviewed 2 days ago

Commonwealth Bank
Commonwealth Bank Car Loan review
Overall
5/10
Fantastic.

Overall great for car loans.

Overall great for car loans.

Price
7/10
Features
6/10
Customer service
5/10
Convenience
7/10
Trust
6/10

Danny | Western Australia

reviewed 2 days ago

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