How to get car loan ready for the EOFY

Whether it’s time for an upgrade or you’re craving a new set of wheels, the end of financial year (EOFY) may be the perfect time pick up a new car.

In fact, the latest ABS data shows that in June last year, over 134,000 new cars were purchased, before falling to just under 93,000 in July.

And since we all need a little help now and then, you may be considering a car loan to fuel (get it?) your car dreams.

But how do you know what to look for when you start your hunt for the perfect car loan? Lucky for you, we’ve got a few tips up our sleeves that may be able to help.

What to look for in a car loan

The type of loan 

Car loans usually come in two types, secured and unsecured. Here are the differences:

Secured car loans - If you decide on a secured car loan, you’ll be using your brand new car as security against the loan and, in return, you’ll generally get a lower interest rate. But it does mean that if you ever default on your loan, your lender has the right to repossess the vehicle.

Unsecured car loans - An unsecured loan won’t require any type of security, like your new car, but it usually will mean a higher interest rate.

The interest rate 

Ah yes, the interest rate - possibly one of the most important feature with any kind of loan. When it comes to interest rates, you’ll find there are two options:

Fixed interest rate - A fixed interest rate means you’ll be ‘locking in’ your rate for the entire loan length. This means that your rate won’t change, no matter how the market moves, so you’ll always know how much interest you’ll be paying to your lender. The downside? Fixed interest rates usually charge exit fees, so if you decide to pay out your loan early, you’ll need to factor in this extra cost.

Variable interest rate - A variable interest rate means the rate will fluctuate depending on the market. However, while the amount of interest you pay will jump around, it's rare you’ll find a variable rate loan with early repayment fees. So not only will you be able to pay off your loan early at no extra cost, you’ll get access to flexible loan features.

Which brings us to our next factor…

Nifty repayment features 

Because what’s a loan without some handy features? Once you start shopping around for car loans, there are two features to keep an eye out for:

Extra repayments - This sweet feature allows you to make extra repayments on your loan, helping you save on interest. However, keep in mind that your lender and the loan you pick may have a limit to how much you can repay, plus you may have to pay a fee to do so.

Redraw facility - What if you ever need that cash back? That’s where the redraw facility comes in. A redraw facility lets you redraw any of the extra repayments you’ve made to pay for other unexpected bills or expenses. Just remember that some lenders may have a minimum redraw amount and could charge a fee.

Speaking of fees…

The fees 

While it is possible to get yourself a loan that has minimal or no fees, there are a few you’ll need to watch out for, like:

Upfront or application fees - This is one of the most common types of fee and will need to be paid once you are approved for the loan. While it is a one-off payment, upfront fees can range between $0- $600.

Ongoing fees - Also known as a monthly service or maintenance fee, ongoing fees are the cost to keep your loan alive. These are usually paid on a monthly basis or annually.

Late repayment fees - This is a fee you’ll be charged if you don’t make your repayment on time.

Break fees - If you opt for a fixed rate loan and decide to end your loan before the fixed term, you will typically be charged a percentage of your original loan amount.

Discharge fees - Also known as the exit fee, discharge fees are charged to cover the cost of closing the loan and can reach up to thousands of dollars.

So now that you’re ready to start car loan shopping, check out some of these hot offers down below. Or, if you’d like to compare more options, head over to our car loan comparison tool.

5 car loans for the EOFY - last updated 28 May 2024

Search promoted car loans below or do a full Mozo database search. Advertiser disclosure
  • Used Car Loan

    Fixed, Secured, No vehicle age limit

    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 $75,000 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
    Details
  • Car Loan

    Up to 7 years old, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.49% p.a.
    6.84% p.a.based on $30,000
    over 5 years

    Purchase or refinance a new or used car, caravan or motorbike, up to 7 years old. Fixed rate with terms from 1 to 7 years. Make additional payments and free redraw. No early payout penalties. No monthly fees. Quick start application in less than 5 minutes online.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.49% would cost $35,460.64 including fees.

    Compare
    Details
  • New Car Loan

    Fixed, Secured

    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 $75,000 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
    Details
  • New Car Loan - Special

    Home Owner Discount, Including Demo, Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.24% p.a.
    7.36% p.a.based on $30,000
    over 5 years

    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.

    Compare
    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
    Details

* 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.

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