Aussies drive record growth for car sales - time to find yourself a car loan?

By Kelly Emmerton · · 3 min read
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If you thought about treating yourself to a set of new wheels in 2017, you're not alone - so did a record number of Aussies, according to ABS data.

Our love affair with our cars isn’t showing signs of slowing down any time soon, with total sales of new vehicles rising by 6.7% over the year to December 2017, well above the previous year’s 2.1% growth.

And despite red hot property markets in Sydney and Melbourne, car sales also outstripped home loans last year, with only 86,250 home loans agreed each month, compared with around 100,476 new cars sold, according to MPA .

But Mozo Director, Kirsty Lamont cautioned anyone hitting the car yards to make sure they have their finances sorted out before falling in love with their next ride.

“A competitive car loan can come with an interest rate as low as 5.14% attached, so shopping around for the best deal on loan before you shop around for a car can really pay off,” she said.

“Plus, you’ll then be able to factor the interest payments into your budget, to work out how much you can spend on your new wheels.”

So if you’re on your way to pick up a brand new car this month, check out some competitive car loans below.

Car loans to get you on the road!

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can search our database of 91 car loans.
Last updated 24 November 2024 Important disclosures and comparison rate warning*
  • Used Car Loan

    Fixed, Secured, No vehicle age limit, $5,000-$100,000

    Interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 18.99% p.a.
    7.19% p.a.to 21.78% p.a.based on $30,000
    over 5 years

    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.

    Compare
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    Details
  • Used Car Loan

    Interest rate
    comparison rate
    Monthly repayment
    8.49% p.a.to 16.99% p.a.
    9.21% p.a.to 17.77% p.a.based on $30,000
    over 5 years

    Competitive interest rates for vehicles up to 20 years at beginning of loan term. Maximum loan term of 7 years. No ongoing fees. Dealer/private sale acceptable.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 8.49% would cost $37,420.08 including fees.

    Compare
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    Details
  • New Car Loan

    Fixed, Secured, $5,000-$100,000

    Interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 18.99% p.a.
    7.19% p.a.to 21.78% p.a.based on $30,000
    over 5 years

    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.

    Compare
    Go to site
    Details
  • Used Car - Unsecured Personal Loan

    Interest rate
    comparison rate
    Monthly repayment
    6.56% p.a.to 21.99% p.a.
    6.56% p.a.to 22.79% p.a.based on $30,000
    over 5 years

    Competitive fixed rates for borrowers on 1-7 year loans from $5,000 up to $50,000. $0 monthly fees and no early repayment fees to pay. Fast application process on the Revolut app. According to Revolut and subject to loan approval, you'll receive your money into your Revolut account straight away. Eligibility criteria applies.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.56% would cost $35,768.68 including fees.

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    Details
  • Any Age Car Loan

    Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    10.69% p.a.
    10.97% p.a.based on $30,000
    over 5 years

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 10.69% would cost $39,053.66 including fees.

    Compare
    Find out more
    Details

What to look for in a car loan

Not sure where to start in your car loan search? Here are some of the key features to look at when choosing the right fit for your wallet.

  • Interest rate. The interest rate is probably the first thing you think of when it comes to how much a car loan might cost you - and the difference it can make can be huge! It’s worth shopping around for the lowest rate you can find, and remember that some car loan lenders determine the rate you get depending on your credit score, which means the better your score, the less interest you pay.

  • Fees. Another thing that can add to the price tag of your new vehicle are fees. This might include application fees, ongoing service fees or even fees for paying your loan off early. It’s worth looking around to see if you can find a fee-free option that suits you.

  • Secured or unsecured? Generally speaking, secured car loans come with lower interest rates attached, since having an asset up as security lowers some of the risk for the lender. And the good news is, you can often use the new car you’re buying as security! If you’re looking for more flexibility or can’t use your car or another asset as collateral, then an unsecured loan may be a better option.

  • Handy features. There are a few features that might come included with your car loan and could stand to save you money if you play your cards right. For example, by making fee-free extra repayments on your loan, you can pay off your principal quicker and save on interest.

Haven’t found what you’re looking for yet? Why not head over and take a look at our car loan comparison table for more options.

* 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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