How are car loan rates looking right now?

By Polly Fleeting ·
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 2020? 


According to the Mozo database the average new car loan rate sits at 6.41%. Meanwhile the average used car loan rate sits at a slightly higher 6.98%

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

loans.com.au New Car Loan
Promoted
  • 4.67% fixed rate (5.22% comparison rate*)
  • Extra repayments allowed
  • No ongoing monthly service fee

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. 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.

OurMoneyMarket Car Loan
Promoted
  • Fixed rates from 5.50% (5.85% comparison rate*)
  • No service, exit or early repayment charges
  • Extra repayments allowed

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 5.50% (5.85% 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
Promoted
  • 3.97% fixed rate (4.51% comparison rate*)
  • Extra repayments allowed
  • No ongoing monthly service fee

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.

Heritage Bank Car Loan
Promoted
  • Fixed rates from 5.99% (6.63% comparison rate*)
  • Extra repayments allowed
  • Redraw facility

Need competitive rates and flexible repayment options on your car loan? Heritage Bank’s Car Loan provides just that! This loan comes with low fixed rates start at 5.99% (6.63% comparison rate*), a range of loan terms from 1 to 7 years as well as a broad loan amount offering (between $5,000 and $100,000). And when it comes to repayments, there are plenty of options. Customers can choose to make weekly, fortnightly or monthly repayments, and on top of that make extra repayments and redraws. There are a few fees to watch out for though, such as the $200 upfront application fee and the $5 ongoing monthly service fee.

Plenti New Car Loan
Promoted
  • Fixed rates from 4.89% (5.44% comparison rate*)
  • Extra repayments allowed
  • No early repayment penalty or ongoing service fee

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.

Wisr Secured Car Loan
Promoted
  • Fixed rates from 5.19% (6.08% comparison rate*)
  • Extra repayments allowed
  • No service, exit or early repayment fees

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 5.19% (6.08% 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 large $605 application fee to take into account.

Want to see how more car loan options stack up? Jump over to our car loan comparison table for more.

*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. WARNING: 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.

Mozo may receive advertising fees from the financial institutions, issuers of financial or credit products and third party advice providers that are shown on this page. These fees are based on a cost per click, cost per acquisition, or a fixed fee.

Polly Fleeting
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.