Car loan providers slash rates in time for dealership sales

By Roisin Kelly-Goldsmith · · 2 min read
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Now more than ever is the perfect time to purchase some new wheels, with car dealerships across the country slashing price tags on stock they are trying to clear before 2016 winds up.

To top things off, providers have been busy cutting interest rates on car loans in December, making it even more appealing for Aussies to nab a new ride.

According to Mozo’s database, Gateway Credit Union made the biggest car loan rate reduction this month of 1.35%, bringing its rate down to 5.69%.

Our comparison calculator shows, a borrower looking to buy a $30k set of wheels, who went for this new low rate over the average in our database, would save $3,607 in interest over a five year period.

Another lender who cut car loan rates this month was big four player ANZ, slashing its Online Secured Car Loan by 65 basis points to 6.15%.

However, Mozo Director Kirsty Lamont warned car lovers not to get too excited by major lenders reducing car loan rates, as often it’s the smaller providers offering the best deals.

“While it’s great we’ve seen a range of providers reduce rates on car loans this month, it doesn’t necessarily mean that what they have to offer is a bargain. In fact, with a little car loan comparing, Aussies can access rates below the 5% mark,” she said.

Top car loans right now:

Best of the big four:

  • ANZ’s Online Secured Car Loan* at 6.15%

Best secured car loan

Best unsecured car loan

Lamont added that there’s no guaranteeing these low rates will last, so car buyers in the market should act soon before it’s too late.

*Product no longer exists (as of 18/12/2018)

* 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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