How are car loan rates looking right now?

By Polly Fleeting · Last updated Monday, 2 August 2021 · 2 min read

Fact Checked

two young girls in the new car bought with loan

Itching to get your hands on a fresh set of wheels? Unless you are sitting on a whole bunch of savings, you may need a car loan to help you get there.

There are two main types of car loans: a new car loan and a used car loan. Depending on whether you want a brand new or pre-loved ride, this will determine what sort of loan you take out.

So where do car loan rates sit in August 2021?

According to the Mozo database the average new car loan rate sits at 6.21%. Meanwhile the average used car loan rate sits at a slightly higher 6.71%.

But who wants just average right? Check out some of these killer car loan deals and you could be hitting the road sooner!

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Important disclosures and comparison rate warning*

Important disclosures

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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 Product Disclosure Statement (PDS) or offer documentation, or seeking independent advice. It is also advised to review Target Market Determination(TMD) of products that you are considering. The TMD can be found on the provider's website.

Comparison rate warning

WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. 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.

How Initial Monthly Repayments figures are estimated

Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

loans.com.au New Car Loan

4.67% fixed rate (5.22% comparison rate*)
Extra repayments allowed
2021 Mozo Experts Choice Award winner^

Find out more

The loans.com.au New Car Loan could be exactly what you need if you’re looking for a loan with both a low rate and flexible repayment options. Not only does it come with a competitive 4.67% fixed interest rate (5.22% comparison rate*) but there are also no monthly service fees to worry about. Plus, borrowers can choose to make weekly, fortnightly or monthly repayments as well as make extra repayments whenever they want to. And it's award-winning too as it snapped up a 2021 Mozo Experts Choice Award^ for best Car Loan. Just bear in mind there is an upfront application cost of $400, and if you pay down your entire loan early you may need to cough up a $700 early repayment fee.

Wisr Secured Car Loan

Fixed rates from 4.74% (5.01% comparison rate*)
Extra repayments allowed
No service, exit or early repayment fees

Find out more

Hunting for the perfect car loan for the perfect car? The Wisr Secured Car Loan is worth considering. The loan comes equipped with fixed rates starting from a low 4.74% (5.01% comparison rate*) and allows customers to borrow anywhere between 3 and 7 years. There are plenty of repayment options too - from weekly, fortnightly to monthly. Plus, borrowers can make free extra repayments without fear of penalty if they pay down the entire loan early. While there is no peeky service fee attached to this loan, bear in mind there is a $195 application fee to take into account.

Plenti New Car Loan

Fixed rates from 4.89% (5.44% comparison rate*)
Extra repayments allowed
No early repayment penalty or ongoing service fee

Find out more

The Plenti New Car Loan comes with a competitive fixed rates starting at a low 4.89% (5.44% comparison rate*), but the rate isn’t the only thing going for it. This loan has no pesky ongoing monthly service fee, exit cost or early repayment penalty. And while we are on the topic of early repayment, while borrowers can only opt to make monthly regular repayments they can make free extra repayments whenever they like. It’s important to note that there are no redraws allowed on this loan. Also remember, you’ll need to budget for a $399 upfront application fee.

OurMoneyMarket Car Loan

Fixed rates from 5.35% (5.65% comparison rate*)
No service, exit or early repayment charges
Extra repayments allowed

Go to site

Whether it’s a new or a used car, the OurMoneyMarket Car Loan may get you the keys to your dream vehicle! With fixed rates starting at a competitive 5.35% (5.65% comparison rate*) this loan really is a head-turner. Customers can borrow anywhere from $2,000 to $75,000 and choose from 1-year, up to 7-year term. But that’s not all. This loan also offers weekly, fortnightly or monthly repayment schedules and allows borrowers to make extra repayments. There is no redraw facility however, and there’s a $250 upfront application fee to be mindful of.

loans.com.au Green Car Loan

3.97% fixed rate (4.51% comparison rate*)
Extra repayments allowed
No ongoing monthly service fee

Find out more

Got your eyes on a green machine? Meet the loans.com.au Green Car Loan, designed for eco-friendly vehicles up to $100,000. While this loan does come with a hefty $400 application fee straight off the bat, it has an extremely low interest fixed rate of 3.97% (4.51% comparison rate*). Not only that, it also has no ongoing monthly service fee and allows customers to make extra repayments whenever they want. But you cannot make redraws on this loan, so once you make an additional repayment there is no turning back. And, if you pay down your entire loan early you may be faced with a $700 early repayment charge.

Want to see how more car loan options stack up? Jump over to our car loan interest rates page for more.

*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.

^Check out the full list of winners here: 2021 Mozo Experts Choice Awards for Personal Loans

^* 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

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.

Polly Fleeting

Money writer

Polly Fleeting is a personal finance writer here at Mozo, specialising in loans and credit cards. Her work is aimed at helping people find ways to make smart product choices, reduce debt and get more for their hard-earned dollars. Polly has a degree in Journalism from the University of Technology, Sydney. She is also ASIC RG146 (Tier 2) certified for general advice.