How the right car loan could save you thousands in interest

By Polly Fleeting · Friday, 17 July 2020 · 3 min read

Fact Checked

The truth is, not all car loans are the same. While some interest rates are as low as 2.99%, others go all the way up to a hefty 11.49%. So if you need a hand weeding through the loans on offer to find yourself a good deal, you’ve come to the right place.

Recent Mozo data shows that savvy car loan customers could end up saving thousands in interest repayments by picking the right lender. In fact, it revealed that drivers making a $35,000 vehicle purchase have the potential to save as much as $3,482 or even more by choosing a competitive car loan^.

So where should you start searching for a great car loan deal? Read on for some killer car loan options and keep more of your hard earned cash in your pocket!

Low Rate Car Loans 2020

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Important disclosures and comparison rate warning*

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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 - Prime Special

Low 4.67% fixed interest rate (5.22% comparison rate*)
Extra repayments allowed
No monthly service fee

Find out more

From online lender loans.com.au, the New Car Loan offers a competitively low rate of 4.67% (5.22% comparison rate*). Not only will your interest repayment be low, this loan comes with a fixed rate so you’ll have peace of mind knowing you’ll always be paying the same regular repayment each week, fortnight or month. There are also no pesky ongoing monthly fees to worry about on this loan and if you want to make extra repayments towards your balance, you can!

Wisr - Secured Car Loan

5.19% fixed interest rate (6.08% comparison rate*)
No early repayment or ongoing fees
Fast approval between 24-48hrs

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On the lookout for a great rate car loan that will get you behind the wheel of your dream car? Well, with competitive fixed rates for borrowers with good credit on loans between $5,000 and $50,000, plus no ongoing fees, the Wisr Secured Car Loan could be just what you have been searching for.

OurMoneyMarket - Car Loan

Fixed interest rates from 5.50% (5.85% comparison rate*)
Extra repayments allowed
No penalties for early repayment

Go to site

If you need a low rate car loan with flexible repayment options, introduce yourself to OurMoneyMarket’s Car Loan. Fixed interest rates start at a competitive 5.50% (5.85% comparison rate*) on this loan, keeping your regular interest repayments low. There are a bunch of loan terms from 1 to 7 years and you can borrow anywhere between $2,000 and $5,000. But wait, there’s more! Not only can borrowers make extra repayments whenever they like, there is also no penalty for paying off your loan early.

loans.com.au - Clean Green Car Loan

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

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With one of the lowest car loan rates on the Mozo database, the loans.com.au Clean Green Car Loan could be a great option if you’re looking to save. This budget and eco-friendly loan comes with a competitive 3.97% fixed interest rate (4.51% comparison rate*) and no ongoing monthly service fees. With this loan you have the choice to pay weekly, fortnightly or monthly repayments, plus you can make extra repayments if you want to. Just remember, this loan is for green cars only.

Want to compare more car loans? Check out other competitive rates at Mozo’s car loan comparison hub.

^Savings calculated by comparing the average 6.62% interest rate with the lowest 2.99% rate on a loan of $35,000 over a 5 year term.

^* 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

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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.