CommBank cuts its car loan rate, here’s how much you’ll save

By Ceyda Erem · · 3 min read
Fact Checked
Advertiser disclosure

From busted heating to an ancient stereo system, it’s not uncommon for many Aussies to be at their wits end with their car.

And for many Aussie drivers, opting for a car loan may be the solution to getting the car of their dreams and ridding themselves of a motor nightmare.

So if you’re an Aussie keen for a fresh set of wheels, CommBank has recently cut the rate of its Secured Car Loan from 8.49% to 6.99% - a discount of 1.50%.

“With all the bad press CommBank have received over hiking their home loan rates, I’m not surprised they’re looking for ways to get back into their customers’ good books,” said Mozo Product Data Manager, Peter Marshall.

RELATED: Hand me down love - Aussies are buying second hand cars more than ever

To find out whether the newly discount rate is really worth its salt, we decided to pull out our car loan repayment calculator.

Say you wanted to purchase a new car and decided to borrow $30,000 to be repaid over five years at the original rate of 8.49%, according to the calculator, you’d have to make monthly repayments of $615. Or if you were interested in buying a used car and only borrowed $10,000 to repay over three years on the same rate, your monthly repayments would total $316.

However, with the new rate of 6.99%, buying a new car on the same terms would cost you $594 per month and a used car at $309 per month - a minor difference of $21 and $7, respectively.

RELATED: Is your car costing you more than you think?

The loan itself features a hefty $250 application fee and $10 service fee and while this still might tick the boxes for many Aussies, Marshall has reminded buyers that these expenses can add up over time.

“While a $10 monthly service fee might not seem like a big deal, if you’ve got a five year loan, it’s going to cost you $600. There are many other car loans on the market that offer great rates and no service fees, so check the total cost of the loan before committing,” he said.

And with that thought in mind, we had a look into our database and pulled the top 4 of the lowest fixed and variable car loan rates. They were:

Top 4 fixed car loan rates

Top 4 variable car loan rates

But if none of these car loans have gotten you revved up, you can check out our car loan comparison tool for even more options.

* 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.

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.