Don’t get taken for a ride on your car loan

By Mozo Editorial · · 2 min read
Fact Checked
Advertiser disclosure
woman in her car holding the keys out the window

Choosing the right car loan can be tricky to navigate. From interest rates and fees to selecting the perfect loan term, there's a lot to think about.  

So no matter if you opt to borrow from a traditional bank or an online lender, there are a bunch of dos and don'ts on getting a car loan you should know about, to avoid being taken for a ride. 

Read on to find out Mozo’s expert car loan tips and compare top car loan deals on offer right now… 
 

Car loan do's

  • Compare car loan interest rates: By weighing up your options across a number of lenders you give yourself a good chance of snagging a deal. Also remember, some lenders offer tiered rates that reward customers for having a good credit rating. 
  • Make sure you can make extra repayments at no extra cost: It’s always a good idea to take out a loan that allows you to make free extra repayments whenever you can, should you have some extra cash. Just be mindful, some loans come with early repayment penalties if you pay your entire loan off ahead of time. 

Car loan don’ts: 

  • Watch out for multiple fees: While an application fee, a monthly charge and early repayment penalty may seem like small costs separately, when added up they could end up costing you thousands. For example, a $10 monthly fee might not sound like much but over a 5-year loan you’d end up $600 out of pocket on top of the interest you pay and any other fees. 
  • Remember, the longer the loan the more interest you pay: If you can and if it's feasible for you, opt for a shorter loan term. While your regular repayments may be higher it’ll save you in the long run as it means you’ll fork out less in interest. Just remember, only opt for this if you can afford a shorter term without compromising your everyday finances.

LOW RATE CAR LOANS

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can search our database of 89 car loans.
Last updated 21 June 2025 Important disclosures and comparison rate warning*
  • Used Car Loan

    Fixed, Secured, No vehicle age limit, $5,000-$100,000

    Interest rate
    comparison rate
    Monthly repayment
    6.28% p.a.to 18.99% p.a.
    6.28% p.a.to 21.78% p.a.based on $30,000
    over 5 years

    Get a competitive fixed interest rate on a secured used car loan of up to $100,000 depending on your credit score. No vehicle age limits. Easy online application. Fast pre-approval. Pre-approved funds held for 1 month. 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 6.28% would cost $35,033.88 including fees.

    Compare
    Go to site
    Details
  • New Car Loan

    Up to 3 years old, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.25% p.a.
    6.52% p.a.based on $30,000
    over 5 years

    Borrow between $5,000 - $25,000 over 1 to 7 year loan terms. No monthly fees and no penalties for extra repayments.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.25% would cost $35,203.67 including fees.

    Compare
    Go to site
    Details
  • New / Demo Car Loan

    Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    5.99% p.a.
    7.12% p.a.based on $30,000
    over 5 years

    Rate cut now live! 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 5.99% would cost $35,670.67 including fees.

    Compare
    Go to site
    Details
  • New Car Loan

    Fixed, Secured, $5,000-$100,000

    Interest rate
    comparison rate
    Monthly repayment
    6.28% p.a.to 18.99% p.a.
    6.28% p.a.to 21.78% p.a.based on $30,000
    over 5 years

    Get a competitive fixed interest rate on a secured new car loan of up to $100,000 depending on your credit score. Easy online application. Fast pre-approval. Pre-approved funds held for 1 month. 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 6.28% would cost $35,033.88 including fees.

    Compare
    Go to site
    Details
  • Any Age Car Loan

    Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    8.99% p.a.
    9.27% p.a.based on $30,000
    over 5 years

    Borrow between $5,000 - $25,000 over 1 to 7 year loan terms. No monthly fees and no penalties for extra repayments.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 8.99% would cost $37,551.30 including fees.

    Compare
    Go to site
    Details
  • Used Car Loan

    Up to 5 years old, Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.89% p.a.
    8.02% p.a.based on $30,000
    over 5 years

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 6.89% would cost $36,428.81 including fees.

    Compare
    Go to site
    Details
  • Mozo Expert Choice Badge
    New Car Loan

    up to 4 years old, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    5.99% p.a.
    6.34% p.a.based on $30,000
    over 5 years

    Fast online conditional approval. No monthly account fee. Unrestricted additional repayments. No penalty for early payout, and a fast application process. Borrow up to $125,000. Apply online in under 10 minutes.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 5.99% would cost $35,040.67 including fees.

    Compare
    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.

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.