How to benefit from the car sales slump

They say every cloud has a silver lining, and if 2020 is the year you’re looking to pick up a new car, you may find that the odds are in your favour.  

According to the Federal Chamber of Automotive Industries (FCAI), car sales decreased by 7.8% between the 2018 and 2019 financial year. A total of 1,062,867 new vehicles were sold in 2019, making it the lowest number of sales on record since 2011. 

“2019 reflects a tough year for the Australian economy, with challenges including tightening of lending, movements in exchange rates, slow wages growth and, of course, the extreme environmental factors our country is experiencing,” said Chief Executive of the FCAI, Tony Weber. 

While the slump in sales isn’t good for car manufacturers and dealers, it is good news for Australians who are in the market for a new car. According to car sales site, Which Car, car manufacturers may discount vehicle prices as they’re faced with the burden of having to meet sale targets and goals for the year. 

In addition to lower car prices, the other good news for buyers is that car loan interest rates are also at historical low levels. At the time of writing, the lowest secured car loan rate in the Mozo database belongs to MOVE Bank at 4.89% (5.16% comparison rate*), while the average secured car loan rate is 7.10%.

“Just as you shop around for the right make and model of car, it’s important to also shop around for the right car financing option,” said Kirsty Lamont, Mozo’s money expert. 

“Say you borrowed $30,000 to be repaid over 5 years. According to Mozo’s car loan repayments calculator, you’d save $2,014 by going with the MOVE bank car loan over a loan with the average rate of 7.10% - that’s a big saving.”

But of course, there’s more to a loan than just the rate, so if you’re about to start your hunt for your perfect car loan, you’ll need to factor in a few other features, like: 

  • Fees - The last thing you want to have to fork out on is fees and some car loans can come with a whole heap of them. Watch out for things like application fees, service fees and even early repayment fees and try to choose a car loan with minimal or zero fees! 

  • Repayment flexibility - No person’s lifestyle is the same, so it makes sense to opt for a car loan that allows you to make your repayments on a schedule tailored to your lifestyle, whether that’s weekly, fortnightly or monthly. 

  • Repayment features - Many loans also come with a few other loan features that can help you pay off your loan faster and save on interest. Having the option to make extra repayments to your loan without penalty can save you a bundle on interest repayments. And it might even be worth choosing a loan that offers a redraw facility. This will allow you to redraw your additional repayments if you ever come into an unforeseen bill or expense. 

Ready to start your search for the right car loan? Compare deals below or head on over to our car loan comparison tool to search our full database! 

*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.

Compare car loans

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Last updated 24 December 2024 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
    6.57% p.a.to 18.99% p.a.
    7.19% 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 6.57% would cost $35,528.12 including fees.

    Compare
    Details
  • Used Car - Unsecured Personal Loan

    Interest rate
    comparison rate
    Monthly repayment
    6.56% p.a.to 21.99% p.a.
    6.56% p.a.to 22.79% p.a.based on $30,000
    over 5 years

    Competitive fixed rates for borrowers on 1-7 year loans from $5,000 up to $50,000. $0 monthly fees and no early repayment fees to pay. Fast application process on the Revolut app. According to Revolut and subject to loan approval, you'll receive your money into your Revolut account straight away. Eligibility criteria applies.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.56% would cost $35,768.68 including fees.

    Compare
    Details
  • New / Demo Car Loan

    Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.24% p.a.
    7.37% p.a.based on $30,000
    over 5 years

    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 6.24% would cost $35,880.27 including fees.

    Compare
    Details
  • New Car Loan

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

    Interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 18.99% p.a.
    7.19% 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 6.57% would cost $35,528.12 including fees.

    Compare
    Details
  • Used Car Loan

    Up to 5 years old, Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    7.39% p.a.
    8.52% p.a.based on $30,000
    over 5 years

    Used Car Loan with no monthly or ongoing fees, with a fixed rate for the life of the loan. Fast online application. 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 7.39% would cost $36,854.29 including fees.

    Compare
    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.