Can I get a car loan rate that starts with a 3?

By Polly Fleeting · Friday, 7 May 2021 · 2 min read

Fact Checked

family buying car with low rate car loan

Yes you can!

… if you’re the right type of borrower.

According to the Mozo database, three car loan providers are offering fixed and variable rate options that start with a 3 right now.

This is extremely competitive, as the current average variable car loan rate on our database is 6.68% across new and used vehicles.

Here’s what’s on offer:

Loans.com.au’s Clean Green Car Loan comes with a fixed rate of 3.97% (4.52% comparison rate*).

Northern Inland Credit Union’s New Car Loan (New or Demo vehicles) has either a fixed or variable rate of 3.99% (4.58% comparison rate*).

Queensland Country Bank’s New Car Loan (New or Demo vehicles) comes with a variable rate of 3.99% (4.89% comparison rate*).

It’s important to keep in mind that there are conditions when it comes to taking out the above loans. For example, the Loans.com.au product must be used for an eco-friendly vehicle, while both the Northern Inland Credit Union and Queensland Country Bank options can only be used for new or demonstrator vehicles.

Similarly, to qualify for these loans you may have to prove to these lenders that you have an excellent credit score.

Okay then, how about a car loan rate that starts with a 4?

Considering the average car loan rate on the Mozo database sits above 6.50%, getting a product with a rate that starts with a 4 is still an exceptional loan option when it comes to purchasing a vehicle.

Currently on the Mozo database, there are 16 car loan lenders that offer variable and fixed rates that start with a 4.

It’s crucial to remember that while the starting rates advertised on the loans may start with a 4, in some cases these rates are reserved for customers with excellent credit. If you have an unhealthy credit rating, the loan product you are considering may come with a rate a lot higher than the lowest on offer.

If you want to start your search right now, check out these great options:

Compare Low Rate Car Loans

Mozo may receive payment if you click products on our site. Mozo does not compare the entire market.

Important disclosures and comparison rate warning*

Important disclosures

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We provide only general advice

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 Product Disclosure Statement (PDS) or offer documentation, or seeking independent advice. It is also advised to review Target Market Determination(TMD) of products that you are considering. The TMD can be found on the provider's website.

Comparison rate warning

WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. 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.

How Initial Monthly Repayments figures are estimated

Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. 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.

Loans.com.au New Car Loan

4.67% fixed rate (5.22% comparison rate*)
2021 Mozo Experts Choice Award winner^
Flexible repayment options

Find out more

Looking for a new car loan with a competitively low interest fixed interest rate? Meet the Loans.com.au New Car Loan. Not only does this award-winning loan have a fixed rate of 4.67% (5.22% comparison rate*), borrowers can take out a loan up to $100,000 for a vehicle purchase. It also has flexible repayment options with the choice of weekly, fortnightly or monthly repayments as well as the ability to make additional contributions (no redraws). Just bear in mind, there is a $400 application cost as well as a $700 early repayment penalty if you pay down your loan ahead of time.

Plenti Car Loan

Fixed rates from 4.89% (5.44% comparison rate*)
Extra repayments allowed
No early repayment penalty

Find out more

For borrowers with an excellent credit score, they may receive a low fixed rate of 4.89% (5.44% comparison rate*) on Plenti’s Car Loan. With this product, loan terms range from 3 to 7 years and borrowing amounts go up to $100,000. While there is only the choice of a monthly repayment schedule, the good news is there is the option to make extra repayments whenever it suits (no redraws). On top of that, there is no early repayment penalty for squaring away your loan early. Remember, there is a $399 upfront cost when you take out this loan, plus if you have an unhealthy credit score rates go up to 8.89% (9.46% comparison rate*).

Wisr Secured Car Loan

Fixed rates from 4.74% (5.01% comparison rate*)
Flexible repayment options
No early repayment penalty

Find out more

The Wisr Secured Car Loan offers low fixed rates starting at 4.74% (5.01% comparison rate*) depending on your credit score. It also comes with the choice of weekly, fortnightly or monthly repayments and the ability to make extra repayments too (no redraws). There are also minimal fees to worry about as Wisr doesn’t charge early repayment, exit or annoying monthly service costs. You’ll just need to watch out for the application fee of $195 and if you have a bad credit rating you may receive a fixed rate up to a hefty 16.01% (16.31% comparison rate*).

Loans.com.au Clean Green Car Loan

3.97% fixed rate (4.51% comparison rate*)
2021 Mozo Experts Choice Award winner^
Flexible repayment options

Find out more

If an eco-friendly car is on the list of your 2021 purchases, the award-winning low-rate Loans.com.au Clean Green Car Loan might be the product for you! This loan comes with one of the lowest rates on the Mozo database of 3.97% (4.51% comparison rate*). Borrowers have the choice of a weekly, fortnightly or monthly repayment schedule and can make extra repayments whenever they like (no redraws). It’s important to note though, while there is no ongoing monthly service cost associated with this product, Loans.com.au charges a $400 upfront application fee and $700 early repayment cost if you pay off your loan before your selected term is up.

^Take a look at the full list of this year’s 2021 Mozo Experts Choice Award for Personal Loans winners!

Want to weigh up some more car loans options? Head to our car loan comparison page for more!

^* 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

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.

Polly Fleeting

Money writer

Polly Fleeting is a personal finance writer here at Mozo, specialising in loans and credit cards. Her work is aimed at helping people find ways to make smart product choices, reduce debt and get more for their hard-earned dollars. Polly has a degree in Journalism from the University of Technology, Sydney. She is also ASIC RG146 (Tier 2) certified for general advice.

Can I get a car loan rate that starts with a 3?