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

By Paige Sutton · · 3 min read
Fact Checked
Advertiser disclosure
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!

Compare low rate car loans

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.
Last updated 24 November 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 up to 3 months. 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

    Interest rate
    comparison rate
    Monthly repayment
    8.49% p.a.to 16.99% p.a.
    9.21% p.a.to 17.77% p.a.based on $30,000
    over 5 years

    Competitive interest rates for vehicles up to 20 years at beginning of loan term. Maximum loan term of 7 years. No ongoing fees. Dealer/private sale acceptable.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 8.49% would cost $37,420.08 including fees.

    Compare
    Go to site
    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 up to 3 months. 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
  • Any Age Car Loan

    Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    10.69% p.a.
    10.97% p.a.based on $30,000
    over 5 years

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 10.69% would cost $39,053.66 including fees.

    Compare
    Find out more
    Details
  • Car Loan

    Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    9.99% p.a.
    10.21% p.a.based on $30,000
    over 5 years

    Repayment terms from 1 year to 6 years. Representative example: a 5 year $30,000 loan at 9.99% would cost $38,385.82 including fees.

    Compare
    Find out more
    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.