Aussie drivers are still feeling the benefits of the RBA’s May rate drop, as a number of car loan lenders have dropped interest rates since the announcement.
Eleven lenders dropped interest rates by an average of 0.93%, across both fixed and variable car loan products.
The biggest rate cut came from Latitude Financial Services, which dropped its fixed rate car loan from 10.85% to 8.99%. Gateway Credit Union offered rate cuts across the most products, dropping rates by 1.30% on its new car loan, and by 0.25% on loans for used cars.
Despite these savings, Mozo Director Kirsty Lamont cautioned borrowers against assuming that a rate cut necessarily meant a great value product.
“Although we’ve seen rate drops from some lenders since May, the rates on offer now still may not be the best deal on the market,” she said.
“For example, two of the big four banks were among those cutting rates, but there’s still a pretty consistent trend toward small providers offering the best value car loans.”
The two big banks that cut rates are still at least 1.16% away from being in the top five car loan deals from Mozo’s database, and even the best new rate after the cuts, 5.99% on Gateway Credit Union’s new car loan, is still 0.35% away.
The top car loan deals generally came from mutual banks, credit unions and online lenders, showing that Aussie borrowers who rely on major banks and don’t compare their options could be missing out on significant savings.
Top 5 car loan deals
|Provider||Interest rate||Min. loan amount|
|Loans.com.au Fixed Rate Car Loan||4.69%||$5,000|
|Police Credit Union Fixed Rate Car Loan||4.99%||$20,000|
|Victoria Teachers Mutual Bank Discounted Green Car Loan||5.29%||$5,000|
|Community First Credit Union Variable rate New Car Loan||5.34%||$10,000|
|People's Choice Credit Union Fixed rate Discounted Personal Loan (New cars)||5.64%||$20,000|
“It's hard to say how long these low interest rates will last,” said Lamont. “So Aussies thinking about getting behind the wheel of a new car might want to think about nabbing a deal soon.”
Ready for a new set of wheels? Head over to our car loan comparison table to check out some of the best deals available today.