What is a good interest rate for a car loan in Australia?
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 6.14% and the average used car loan rate is 6.64%. So, if you are receiving a rate that is below average then you are getting a solid deal.
In saying that, there are plenty of lenders that offer low rate car loans well below those numbers, both fixed and variable options. Take these for example …
Compare low rate car loans - rates updated daily
New Car Loan
Including Demo, Fixed, SecuredInterest ratecomparison rateMonthly repayment4.67% p.a.5.22% p.a.based on $30,000
over 5 years
Low fixed car loan rate for purchasing new and demo vehicles from dealers. There is no monthly or ongoing fees and early payout options available. Winner of Mozo's Experts Choice Car Loan 2021 award^.Details
Read our Mozo Review to learn more about the loans.com.au New Car Loan
FixedInterest ratecomparison rateMonthly repayment4.89% p.a.to 8.89% p.a.5.44% p.a.to 9.46% p.a.based on $30,000
over 5 years
Enjoy competitively low rate car loans from 4.89% (comparison rate 5.44% p.a.) between $10,000 and $100,000 for new, demo and used vehicles. Take advantage of flexible 3, 5 or 7 year loan terms. No early repayment or exit fees. You must be 21 years or over to qualify and earn above $35,000.Details
Read our Mozo Review to learn more about the Plenti Car Loan
Secured Car Loan
FixedInterest ratecomparison rateMonthly repayment4.74% p.a.to 16.01% p.a.5.01% p.a.to 16.31% p.a.based on $30,000
over 5 years
Low personalised rates, ideal for borrowers with excellent credit. No monthly account fees, no early payout fees, so you can pay off your loan sooner. Borrow between $5,000 and $64,000. Easy online application, receive a response in minutes and approved funds within 24-48 hours!Details
Read our Mozo Review to learn more about the Wisr Secured Car Loan
Car Loan - Excellent Credit
Fixed, UnsecuredInterest ratecomparison rateMonthly repayment5.95% p.a.to 19.99% p.a.5.95% p.a.to 21.0% p.a.based on $10,000
over 3 years
Be rewarded for your good credit history with low rates. Plus there are no ongoing fees and you can pay off your loan with no early repayment penalties. Simply apply online and get a quote in minutes.Details
Read our Mozo Review to learn more about the SocietyOne Car Loan - Excellent Credit
Low Rate Car Loan Special Offer
Fixed, SecuredInterest ratecomparison rateMonthly repayment4.69% p.a.5.01% p.a.based on $30,000
over 5 years
Beyond Bank’s Car Loan offers super low rates with no ongoing service fee, and flexible features to help you save over the term of your loan. Winner of Mozo’s Experts Choice Car Loan 2021 Award.Details
Read our Mozo Review to learn more about the Beyond Bank Low Rate Car Loan Special Offer
Up to 5 years old, Fixed, SecuredInterest ratecomparison rateMonthly repayment4.89% p.a.5.53% p.a.based on $30,000
over 5 years
Purchase or refinance a new or used vehicle, up to five years old. Choose a loan term from one to seven years. To be eligible you must be over 18, receiving a regular income and an Australian resident.Details
Read our Mozo Review to learn more about the Heritage Bank Car Loan
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 (variable and fixed):
- Northern Inland Credit Union New Car Loan, 3.99% p.a. (4.58% p.a. comparison rate*)
- Queensland Country Bank New Car Loan (New or Demo), 3.99% p.a. (4.52% p.a. comparison rate*)
- Aus Bank Fixed Car Loan, 4.49% p.a. (5.10% p.a. comparison rate*)
- loans.com.au Clean Green Car Loan, 3.97% p.a. (4.52% 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!
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