Australia’s cheapest car loans for 2024

By Sara Borman and Paige Sutton
Fact Checked
Advertiser disclosure
Couple happy in new car Mozo Experts Choice 2023 badge for Personal Loans and car loans

Spring has sprung and this warmer weather might get you in the mood to make some upgrades. Car shopping can be a stressful time if you don't have the finances to cover some new wheels, but a low cost car loan could be a handy option for you. 

A car loan can give you you financial flexibility when you don’t necessarily have the money upfront. However, when you take out a loan you’ll be paying at least a little more than you would if you bought a vehicle outright, due to interest and potentially fees on top of that - so looking for the best rates is essential.

Car loans are not all made equal and it’s worth shopping around. If you’re looking for a great value car loan, our list of award-winners may offer what you’re looking for.

To help you narrow down your options, our team of expert researchers trawled through the fees and features of car loans tracked in the Mozo database to reveal the list of Australia’s cheapest car loans.

The best-value options were crowned as winners across various categories in the Mozo Experts Choice Personal Loan Awards^ for 2024. These categories included:

  • Car Loan
  • Excellent Credit Car Loan
  • Used Car Loan
  • Excellent Credit Used Car Loan
  • Green Car Loan

The awards were announced in November for 2024.

If you're looking for a car loan this year you may want to consider the award-winning cheap car loans below, and you can read further for more details about how we selected winners in different categories.

IMB Bank Car Loan
  • Fixed interest rates from 5.99% (6.34% comparison rate*)
  • No service or exit fees
  • $250 application fee
  • 2024 Mozo Experts Choice Awards winner
Find out more

The IMB Bank Car Loan can give borrowers the security of a fixed rate and keep costs low at the same time, with no ongoing fees. You’ll be able to borrow up to a massive $125,000 for a maximum of seven years. This loan from IMB Bank also bagged a 2024 Mozo Experts Choice Award for best Car Loan & Used Car Loan! However, just keep in mind that you’ll need to be purchasing a car that’s under two years old and there is a $250 & application fee & $50 late payment fee. 

Bendigo Bank Green Personal Loan
  • 2024 Mozo Experts Choice Award winner
  • Fixed rates start from 5.49% p.a. (5.84% p.a. comparison rate*)
  • A number of fees
Find out more

Enjoy going green while benefiting from low fixed rates that start from 5.49% p.a. (5.84% p.a. comparison rate*) with Bendigo Bank’s Green Personal Loan. Not only is it an award-winner in the 2024 Mozo Experts Choice Award, it has a low starting loan amount of $2,000 if you just need a bit of a cash boost to help buy your hybrid vehicle, and a ton of neat features including a redraw facility and flexible repayment schedule. The catch is, while there are no exit fees, borrowers will have to shell out on application and service fees - and if you make a late or early repayment, this can potentially attract additional fees too.

Cheapest Car Loans

If you’re looking to buy a shiny new car driven no further than to its spot in the sales lot, the  winners of this award might be for you. That’s because this category is designed specifically to find the cheapest car loan for customers buying a new car. While there isn’t one specific loan or lender that will be cheapest for everyone, our judges went through a rigorous research process to identify car loans that are among the cheapest.

For this award we took the example of a $30,000 car loan, repaid over five years and worked out the overall cost, including any interest, fees and charges. “We found the total price to be paid for each loan, and gave awards to those we assessed as being cheapest for most people,” Mozo Expert Judge Peter Marshall said.

The winners were:

Cheapest Used Car Loans

New cars aren’t for you? Finding a quality used car might be a great option. With new cars in short supply in Australia, second-hand cars have been growing in popularity. These products each scored a Mozo Experts Choice Award^ for cheapest Used Car Loan. 

“To pick the winners for this award, our research team compared the total cost of a $15,000 car loan, repaid over a five year term," Marshall said.

"That includes the principal loan amount, interest payable over that time period and any fees and charges that come with it.”

Same as the new car loan, the results were ranked from the cheapest to the most expensive, with the judges awarding titles to the standouts.

The winners were:

  • When it comes to being rewarded for excellent credit, NOW Finance’s Secured Car Loan and Pepper Money’s Secured Personal Loan picked up the Mozo Experts Choice Award^ for cheapest Excellent Credit Used Car Loan. This award category is designed for customers who are looking for a used car loan and already hold an excellent credit rating.

    Cheapest Green Car Loan winner

    As you might have guessed, this last award category seeks to recognise Australia’s cheapest car loans for ‘greener’ cars. Of course green is a little vague, so let’s break that down.

    “The Green Car Loan award only considers loans that offer special rates or fees aimed at encouraging Australians to buy low-emission vehicles,” Marshall said.

    After identifying loans that met this criteria, the research team calculated the overall cost of a $30,000 loan, repaid over five years.

    The winners were:

    Why choose a Mozo Experts Choice award winner?

    Like a lot of things in the financial realm, car loans can be confusing. First you have to consider the interest rate. Then you have to make sure there aren’t any sneaky fees. And finally, you’ll need to investigate if there are any loan features that might help you save money or pay down your debt sooner.

    This can all be a bit overwhelming, but that's where we come in. Mozo is dedicated to comparing financial products so they’re easier for you to research and assess yourself – and we’ve been doing it for over a decade.

    Marshall says the research team knows where to start and what to take into consideration when looking at loan costs.

    “For the Car Loans category – which only considers loans intended for customers purchasing new cars – we assessed 83 different products to see which ones had the most competitive pricing, as of 13 October 2023” he said.

    That’s just the tip of it though. To allow for any price variations over time, the team made calculations on three different dates over a three month period. This took into account the applicable interest rate and all mandatory fees (like application, service or exit fees) for each loan assessed. 

    As you can see, a lot of work goes into comparing these financial products so we can accurately highlight the best-value personal loan products on offer in Australia. We don’t take this responsibility lightly and each year we do the calculations again so that Australians always have the most up to date information on what the most competitive personal loan products are.

    See more information and the methodology report for the 2024 Mozo Experts Choice Awards for Personal Loans.

    Explore other available car loan options - last updated 9 December 2023

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

      Go to site
      Details
    • Used Car Loan

      Fixed, Secured, No vehicle age limit

      Interest rate
      comparison rate
      Monthly repayment
      6.57% p.a.
      7.19% 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.

      Go to site
      Details
    • Car Loan

      Up to 10 years old, Fixed, Secured

      Interest rate
      comparison rate
      Monthly repayment
      6.69% p.a.
      7.04% p.a.based on $30,000
      over 5 years

      Purchase or refinance a new or used vehicle, up to five years old. Choose a loan term from one to seven years. To be eligible you must be over 18, receiving a regular income and an Australian resident.

      Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.69% would cost $35,629.48 including fees.

      Go to site
      Details
    • New Car Loan

      Fixed, Secured, Excellent Credit Score [832+]

      Interest rate
      comparison rate
      Monthly repayment
      7.29% p.a.to 7.79% p.a.
      8.00% p.a.to 8.50% p.a.based on $30,000
      over 5 years

      Enjoy a quick application process and no monthly fees on NRMA new car loans. Finance also available motorcycles, caravans and motorhomes. Low fixed interest rates with terms of up to seven years. Plus, NRMA Blue Member benefits apply so you could enjoy even lower rates as an NRMA Member**.

      Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 7.29% would cost $36,387.95 including fees.

      Go to site
      Details
    • New Car Loan - Special

      Including Demo, Variable, Secured

      Interest rate
      comparison rate
      Monthly repayment
      7.74% p.a.
      8.85% p.a.based on $30,000
      over 5 years

      Low variable car loan rate for purchasing new and demo vehicles from dealers. Extra low rate for qualifying homeowners. 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 7.74% would cost $37,153.94 including fees.

      Go to site
      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.

    ^See information about the Mozo Experts Choice Personal Loan Awards

    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 PDS or offer documentation, or seeking independent advice.

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