Do I need a deposit to get a car loan?

Yellow car on the street

Unlike home loans, you don’t always need to have a deposit for a car loan. However, if you do put down a deposit it may help your approval process and lower your repayments.

Most lenders offer a loan equal to the entire value of the car but you may run into some lenders that ask for a small deposit.

Here are some instances where that might happen:

  • You have no or bad credit history
  • You owe lots of money on other loans
  • There is a specific policy by the lender that requires a deposit from you.

Why is a car loan deposit beneficial?

On any loan, the less you borrow the less interest you’ll pay in the long term. It is better to take out a $20,000 loan versus a $30,000 simply because you’ll pay it off faster and it will pay less interest during the life of the loan.

Here are some perks of having a car loan deposit:

  • It increases your chances of approval
  • You can potentially get a lower interest rate
  • It can make your repayments easier to manage.

While having a deposit for your car loan is beneficial, it can take some time to save up and that is not always doable. There are plenty of car loans out there that don’t ask for any sort of deposit. So if you can’t pay a deposit don’t worry - there are usually other options you can consider.

If you are thinking about buying a car soon, check out Mozo’s car loan repayment calculator to figure out how much you can afford in your budget.

Car loan comparisons on Mozo - last updated 6 August 2022

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

    Home Owner Discount, Including Demo, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    5.69% p.a.
    6.24% p.a.based on $30,000
    over 5 years

    Eligible for homeowners only. Low fixed car loan rate for purchasing new and demo vehicles from dealers. There is no monthly or ongoing fees and early payout options available. Winner of Mozo's Experts Choice Car Loan 2021 award^.

    Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 5.69% would cost $34,940.17 including fees.

    Details
  • Car Loan

    Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.25% p.a.
    6.87% p.a.based on $30,000
    over 5 years

    Available for all New and Used cars up to 7 years. A quick and easy, 100% online application with loans up to $75,000. No printing. No paper. No fuss. No monthly account keeping fees, no exit fees and no early repayment fees.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.25% would cost $35,258.67 including fees.

    Details
  • Clean Green Car Loan

    Home Owner Discount, New or Used, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    4.99% p.a.
    5.54% p.a.based on $30,000
    over 5 years

    No monthly or ongoing fees. Get a 0.70% discount on your car loan interest rate if you buy a qualifying green car. Winner of Mozo's Experts Choice Green Car Loan 2021 award^.

    Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 4.99% would cost $34,359.97 including fees.

    Details
  • Secured Car Loan

    Fixed

    Interest rate
    comparison rate
    Monthly repayment
    6.34% p.a.to 13.99% p.a.
    7.18% p.a.to 12.87% p.a.based on $30,000
    over 5 years

    Low personalised rates, ideal for borrowers with excellent credit. No monthly account fees, no early payout fees, so you can pay off your loan sooner. Borrow between $5,000 and $79,000. Easy online application, receive a response in minutes and approved funds within 24-48 hours!

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 6.34% would cost $35,689.33 including fees.

    Details
  • Used Car Loan

    Home Owner Discount, Dealer Only, Up to 5 years old, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.49% p.a.
    7.04% p.a.based on $30,000
    over 5 years

    Eligible for homeowners only. Low fixed car loan rate for purchasing new and demo vehicles from dealers. There is no monthly or ongoing fees and early payout options available. Winner of Mozo's Experts Choice Car Loan 2021 award^.

    Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 6.49% would cost $35,610.64 including fees.

    Details
  • Used Car Loan

    Dealer Only, Up to 5 years old, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    7.49% p.a.
    8.04% p.a.based on $30,000
    over 5 years

    Used Car Loan with no monthly or ongoing fees, with a fixed rate for the life of the loan. Fast online application.

    Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 7.49% would cost $36,459.75 including fees.

    Details

^See information about the Mozo Experts Choice Personal Loan Awards

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