How to get your dream car this Christmas

By Ceyda Erem · · 3 min read
Fact Checked
Advertiser disclosure

From spa treatments to picking up a new pair of shoes, everyone needs to treat themselves every now and again.

But for some Aussies this Christmas, spoiling themselves will come in the form of four wheels and an engine.

According to Car Advice, December is the perfect time of year to buy a new car for two reasons: car dealers are often more likely to offer hotter deals toward the end of the month to meet sales targets and the latest models become ‘old’ the following year.

And unless you’ve got some serious coin in your bank account, you might be considering taking out a car loan to help.

To get you off to a flying start, we’ve jotted down some of the need to knows when it comes taking out a car loan, which could help get you zooming down the highway in no time.

5 car loans to help your get dream car for Christmas

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can search our database of 90 car loans.
Last updated 25 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
    Go to site
    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
    Go to site
    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
    Find out more
    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
    Go to site
    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
    Find out more
    Details

What to look for in a car loan

Like choosing the perfect car, finding the right car loan takes time and patience. But there are a few things you’ll need to consider, like:

The interest rate

For many, the interest rate is a make or break loan feature, so you don’t want to just pick any. It’s important to weigh up the pros and cons of each, so you can make a decision that’s right for you. The two types of interest rates are:

  • Fixed interest rates - A fixed interest rate allows you to lock in your rate over the life of the loan. This means that you’ll always have the same repayment amount, regardless of how the market moves. Depending on your financial circumstances, a fixed rate allows you to budget more easily, since you’ll always have the comfort in knowing how much you need to repay.

  • Variable interest rates - A variable interest rate depends on how the market fluctuates, so it‘ll either rise or fall. But while your rates may rise, variable rate loans rarely come with early repayment fees, so you won’t have to fork out if you decide to pay out your loan before the term ends.

The type of loan

Car loans come in two types: secured and unsecured. While there is no ‘better’ type of loan, the one you choose should depend your personal circumstances.

  • Secured car loans - If you decide on a secured car loan, you will have to use your car as security against the loan. Although this gives the lender the right to repossess your car if you default on the loan, secured car loans generally come with lower rates. Just keep in mind that if you are planning on buying a second-hand car, secured car loan options are limited, as used cars are deemed by lenders as a risky asset.

  • Unsecured car loans - On the other hand, an unsecured car loan does not use your car as security and does come with different features that can help cut down on interest. However, unsecured car loans typically come with higher interest rates.

Handy repayment features

A another set of features you’ll want to compare are the repayment features, like the option to make extra repayments and make use of a redraw facility. While having these features aren’t essential, they can help you in the long run.

  • Extra repayments - One feature many loans come with is the ability to make extra repayments. Depending on the lender, some may charge a fee to do this while others don’t. Not only could this help you pay off your loan faster, it could reduce the interest you’ll pay over the loan term.

  • Redraw - Another useful feature is a redraw facility - this allows you to withdraw any of your extra repayments to put toward an unexpected bill or cost.

So if you think you’re ready to start shopping around on car loans, make your next stop our car loan comparison tool.

* 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.