How the right car loan could save you thousands in interest

Polly Fleeting

17 Jul 2020

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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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loans.com.au New Car Loan
  • Low 4.67% fixed interest rate (5.22% comparison rate*)

  • Extra repayments allowed

  • No monthly service fee

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!

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Beyond Bank Low Rate Car Loan Special Offer
  • Low 4.89% fixed interest rate (5.16% comparison rate*)

  • Extra repayments and redraw facility

  • Offset account available

If you want to save on interest repayments, the Beyond Bank Low Rate Car Loan Special Offer could be the product you’re looking for! It comes with a super competitive 4.89% fixed interest rate (5.16% comparison rate*), plus the option of an offset account so you can reduce the amount of interest you pay on your balance over the life of your loan. Not only that, this loan comes equipped with both free extra repayments and a redraw facility, plus you won’t be charged any monthly ongoing service fees either.

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OurMoneyMarket Car Loan
  • Fixed interest rates from 5.50% (5.85% comparison rate*)

  • Extra repayments allowed

  • No penalties for early repayment

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.

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loans.com.au Clean Green Car Loan
  • 3.97% fixed interest rate (4.51% comparison rate*)

  • Extra repayments allowed

  • No monthly service fee

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.

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