Online lender loans.com.au has taken the axe to all of its car loans, bringing its rates to some of the lowest around.
Loans’ Clean Green Car Loan fell by 22 basis points to 3.97% p.a. (4.51% p.a. comparison rate*), maintaining its position as the most competitive secured car loan in the Mozo database. It’s now also the only secured car loan in our database under 4.00%.
“An interest rate of less than 4.00% is something that many of the Big 4 are still charging for a home loan so to offer a car loan at that price is remarkable,” Loans.com.au Managing Director, Marie Mortimer said.
The Clean Green Car Loan is available to customers purchasing eco-friendly vehicles, including all electric and hybrid cars and some low-emissions petrol cars.
Both Loans’ New Car Loan and its Used Car Loan also dropped by 22 basis points to 4.67% p.a. (5.22% p.a. comparison rate*), pushing them up to equal second place in the Mozo database.
Just how good are these rates?
To put Loans’ new rates into perspective, we decided to see how they stacked against the big banks.
For CommBank, secured car loan rates start from 6.99% p.a. (8.05% p.a. comparison rate*) while Westpac’s rates sit at an even higher 8.49% p.a. (9.67% p.a. comparison rate*).
Say, you borrowed $30,000 over 5 years to buy a brand new set of wheels. With the Westpac Car Loan, you would pay $615 in monthly repayments and $6,921 in total interest, according to the Mozo car loan repayment calculator.
But with the Clean Green Car Loan, your repayments would drop to $552 per month while your total interest costs would decrease over twofold to $3,125.
“We think that these competitive interest rates, combined with the amazing prices that dealers are offering at the moment, means this is a great time to buy a vehicle,” Mortimer said.
Loans.com.au’s award-winning car loans
Here’s a snapshot of some of Loans’ current car loan deals: