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Whether you’re looking to buy your first car or a used one, compre $5,000 car loans available from a range of Australia’s best 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 1 month. 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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Variable, Secured
Low variable car loan rate for purchasing new and demo vehicles from dealers. Personalised loan amounts between $5,000 and $150,000. Flexible repayment options. Choose between the 3 to 7 year loan terms. 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 6.24% would cost $35,880.27 including fees.
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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 1 month. 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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Up to 5 years old, Variable, Secured
Used Car Loan with no monthly or ongoing fees, with a fixed rate for the life of the loan. Fast online application. 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 7.39% would cost $36,854.29 including fees.
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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.
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Your selected car loans
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
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.
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.
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.
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
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.
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.
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.
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.
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!
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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