What is a good interest rate for a car loan in Australia?

By Paige Sutton · · 3 min read
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Happy woman in new car with pet dog

Need a car loan to help you fund your first or next set of wheels? But don’t know what a good interest rate looks like? 

We’re here to help. 

Right now on the Mozo database, the average new car loan rate is 7.44% and the average used car loan rate is 8.16%. So, if you are receiving a rate that is below average then you are getting a solid deal.

What is the best car loan rate available right now? 

By best, we are going to assume you mean lowest. Currently on the Mozo database the lowest car loan interest rates on offer are as follows:

New car loan (excluding green car loans) : 

  • Fixed rates: South West Slopes Credit Union Car Loan – rates from 4.99% p.a. (4.99% p.a. comparison rate*)
  • Variable rates: Community First Bank Car Loan – rates from 5.89% p.a. (7.12% p.a. comparison rate*) - car up to 5 years old. 

Used car loan (excluding green car loans):

  • Fixed rates:  South West Slopes Credit Union Car Loan – rates from 4.99% p.a. (4.99% p.a. comparison rate*)
  • Variable rates: Community First Bank Car Loan – rates from 5.99% p.a. (7.12% p.a. comparison rate*) - car up to 5 years old. 

Green car loans:

  • Fixed rates: Westpac’s Hybrid or Electric Car Loan – rates from 5.49% p.a. (6.70% p.a. comparison rate*)
  • Variable rates: Community First Bank’s Green Car Loan – rates from 5.54% p.a. (6.67% p.a. comparison rate*)

3 tips to getting a low car loan rate 

Getting a low car loan rate can save you money by slashing the amount you pay in interest over the life of the loan. So here’s three ways you can better your chances of securing a competitive rate … 

1. Shop around: By comparing car loans and weighing up different options, you are bettering your chance at finding a competitive rate on a loan that suits you. When shopping around for a car loan, get all the details from interest rates, to fees and repayment features. Be careful though, it’s important that you don’t apply for multiple loans at once as this can put a negative mark on your credit rating. Look at it as window shopping, and only commit to applying to the loan you like best (and are likely to be approved for). 

2. Consider an online lender or smaller bank: While it might seem like the easy option to stick with a big bank when applying for a car loan, by doing that you may not receive a low rate. Right now many credit union, small bank and online loans come with lower rates than those offered by bigger banks. Plus, CommBank and Westpac are the only two of the big four to offer car-specific loans to customers, so there’s more choice if you go with smaller lenders. 

3. Get your credit history in check: Some car loan lenders offer products that come with a risk-based pricing model. Essentially, this means rates are calculated according to an applicant’s credit rating, so the better the credit score the lower the rate. So by ensuring that your credit rating is healthy, you'd better your chance at receiving a lower rate. You can do this by being responsible with your current debt and always making repayments on time. 

Want to compare more car loan options? Head to our car loan comparison table for some other top lenders!

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 91 car loans using the filters.
Last updated 5 December 2025 Important disclosures and comparison rate warning*

Car loan comparisons on Mozo

  • Promoted

    Low Rate Car Loan Excellent Credit

    • Fixed, Secured
    Interest rate from
    5.66 % p.a.
    to
    23.03 % p.a.
    Comparison rate from
    6.45 % p.a.
    to
    24.98 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $605
    Go to site

    Borrow up to $100,000. No monthly account or early repayment fees. Available for new or used vehicles. Fast, simple online application with loan approval in as little as 9 minutes according to Harmoney.

  • Promoted

    New Car Loan

    • up to 4 years old, Fixed, Secured
    Interest rate from
    5.99 % p.a.
    Comparison rate from
    6.34 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $608
    Go to site

    Fast online conditional approval. No monthly account fee. Unrestricted additional repayments. No penalty for early payout, and a fast application process. Borrow up to $125,000. Apply online in under 10 minutes.

  • Promoted

    Car Loan

    • Variable, Secured
    Interest rate from
    5.99 % p.a.
    Comparison rate from
    7.12 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $608
    Go to site

    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.

  • Promoted

    Used Car Loan

    • Fixed, Secured, No vehicle age limit, $5,000-$100,000
    Interest rate from
    5.95 % p.a.
    to
    18.99 % p.a.
    Comparison rate from
    5.95 % p.a.
    to
    21.78 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $608
    Go to site

    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.

  • Promoted

    New Car Loan

    • Fixed, Secured, $5,000-$100,000
    Interest rate from
    5.95 % p.a.
    to
    18.99 % p.a.
    Comparison rate from
    5.95 % p.a.
    to
    21.78 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $608
    Go to site

    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.

  • Promoted

    Car Loan

    • Fixed, Secured
    Interest rate from
    6.54 % p.a.
    Comparison rate from
    7.67 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $613
    Go to site

  • Low Rate Car Loan Excellent Credit

    • Fixed, Secured
    Interest rate from
    5.66 % p.a.
    to
    23.03 % p.a.
    Comparison rate from
    6.45 % p.a.
    to
    24.98 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $605
    Go to site

    Borrow up to $100,000. No monthly account or early repayment fees. Available for new or used vehicles. Fast, simple online application with loan approval in as little as 9 minutes according to Harmoney.

  • Unsecured Personal Loan

    • Fixed
    Interest rate from
    5.76 % p.a.
    to
    24.03 % p.a.
    Comparison rate from
    5.76 % p.a.
    to
    24.98 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $606
    Go to site

    Fast, easy and 100% online, this is a low cost loan with no ongoing fees or extra repayment penalties. It's perfect for savvy borrowers with great credit. If you’re over 18 and earn above $30,000, you could qualify (other eligibility criteria may apply).

  • Debt Consolidation Loan

    Interest rate from
    5.76 % p.a.
    to
    24.03 % p.a.
    Comparison rate from
    5.76 % p.a.
    to
    24.98 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $606
    Go to site

    Roll multiple debts into one loan to streamline your finances with one set of repayments and one interest rate. Competitive fixed interest rates with no monthly or early repayment fees and flexible repayment options. Easy online application and funding in as little as 24 hours (subject to approval).

  • New Car Loan

    • up to 4 years old, Fixed, Secured
    Interest rate from
    5.99 % p.a.
    Comparison rate from
    6.34 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $608
    Go to site

    Fast online conditional approval. No monthly account fee. Unrestricted additional repayments. No penalty for early payout, and a fast application process. Borrow up to $125,000. Apply online in under 10 minutes.

Showing 8 results from 91 car loans. Use the filters to see more

* 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.

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