Car loans: What the new and used vehicle market looks like this winter

mother and son buying car

Whether you’re on the hunt for a shiny brand-new set of wheels or a pre-loved vehicle with a bit of character, let’s peep into the Aussie car market right now. 

This month, the Federal Chamber of Automotive Industries (FCAI) released stats that showed an increase in new car sales over June. As a traditionally strong month with EOFY sales, new car sales totalled to 110,664 vehicles last month, 430 vehicles (0.4%) higher than June 2020

And if you look at the results over the last six months, FCAI recorded a total of 567,468 new car sales, compared to 442,415 over the same period in 2020 (a 28.3% increase). This is despite many car dealerships experiencing major delivery delays on new vehicles due to a worldwide shortage of semiconductor chips. 

FCAI chief executive, Tony Weber says that the June 2021 results are in line with what is usually a strong car sales month. 

“Expectations for a strong result in June had remained high given the traditional end of financial year demand from business and private buyers driven by Government incentives such as the extension of the depreciation allowance announced in the Federal budget coupled with intensive marketing activity from vehicle brands,” he said.

“In spite of some States being forced into COVID-19 lockdowns towards the end of June, the acquisition of a new vehicle remains a popular option for buyers across all market segments.”

The FCAI also recorded that Toyota was the most popular car brand in June 2021 with 21,076 sales, followed by Mazda (12,225), Ford (8,456), Kia (7,890) and Hyundai (7,357).

What about used cars

Well, recent data from Moody Analytics revealed that used vehicle prices have risen by a significant 35% over the past year. As international boarders remain closed, many holidayers have turned to roadtrips as an alternative, and according to stats from Datium Insights in February of this year SUVs and commercial utes were the most desired secondhand vehicle types.  

Plus, according to Grays marketplace the classic car market is booming with Aussies seeking old school models, but buying them for prices much higher than the original cost. 

Where do new and used car loan interest rates sit now? 

According to recent Mozo stats, the average new car loan fixed and variable interest rate (for a $30k loan) sits at 6.25%. While the average used car rate is 6.75%. 

The lowest variable new car loan on our database is currently 2.99% (3.35% comparison rate*), offered by Queensland Country Bank on its New Car Loan (for new and demo vehicles).  

And for used cars, the lowest rate is offered by Australian Military Bank, as its Car Loan (for vehicles up to 5 years old) comes with variable rates starting from a competitive 4.49% (5.36% comparison rate*).

Want to see some hot new and used car loans on the market right now? Compare below!

Compare new car loans

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 89 car loans.
Last updated 22 July 2024 Important disclosures and comparison rate warning* New Car Loan
  • 4.67% fixed interest rate (5.22% comparison rate*)
  • Extra repayments allowed
  • No ongoing monthly service fee
Find out more

If you need a new car loan with a competitive interest rate, flexible repayment options and no ongoing fees, check out what’s on offer from With the New Car Loan, customers can borrow up to $100,000 and receive a low 4.67% fixed interest rate (5.22% comparison rate*). And when it comes to paying down the loan, there’s the option of a weekly, fortnightly or monthly repayment schedule. Plus, extra repayments are allowed. Just keep in mind, there is no redraw facility and you could be charged $700 for paying down your loan early.

Plenti New Car Loan
  • Interest rates from 4.89% (5.44% comparison rate*)
  • Free extra repayments
  • No service or exit fee
Find out more

Got good credit and also looking for a new car loan? Say hey to Plenti’s New Car Loan. Based on your credit history you could receive a personalised fixed interest rate as low as 4.89% (5.44% comparison rate*). Customers can borrow up to $100,000 with this loan and not have to cough up cash for ongoing service fees. While there is only the option to make monthly repayments, Plenti allows borrowers to make free extra repayments, without charging an early repayment penalty. It’s important to note there is a hefty $399 application fee attached to this loan.

Compare used car loans

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 89 car loans.
Last updated 22 July 2024 Important disclosures and comparison rate warning*
Wisr Secured Car Loan
  • Fixed rates from 4.74% (5.01% comparison rate*)
  • Free extra repayments
  • No monthly service fee, exit fee or early repayment penalty
Find out more

Need a loan with a low interest rate? But also with minimal fees and flexible repayment options? The Wisr Secured Car Loan could be exactly what you’re looking for. This loan has fixed rates starting at a competitive 4.74% (5.01% comparison rate*) as well as no monthly service fees or exit fee attached to it. And if you want to pay down your loan early without penalty, you can! There are free extra repayments on this loan as well as no early repayment charge if you pay down the loan before expected. Just bear in mind though, there is a $195 upfront fee when you apply for this loan.

OurMoneyMarket Car Loan
  • 5.35% fixed interest rate (5.65% comparison rate*)
  • Extra repayments
  • For both new and used vehicles

Whether you’re after a new or used car, OurMoneyMarket’s Car Loan could be the right choice for you. With a low fixed rate of 5.35% (5.65% comparison rate*) and no ongoing service fee or exit cost, this loan is a pretty attractive option. Not only that, borrowers have a bunch of repayment schedule options on this loan. For example, they can make extra repayments without being charged an early repayment penalty if they pay the loan off early. But there is a $250 upfront cost to be mindful of.

If you want to check out even more car loan options, jump over to our new car loans or used car loans comparison tables.

* 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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