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If you don't have the money to purchase a car outright, you'll need a car loan. A car loan breaks the overall payment into smaller repayments made over time. Start comparing below and you could soon be in your new set of wheels.
Protect your credit score and get personalised help from an expert. Fido Finance does the comparing for you to help find top rate and repayment loan options from a range of trusted lenders. They receive high average review ratings by their customers. Getting in touch costs you nothing and commits you to nothing.
Fixed, Secured, No vehicle age limit, $5,000-$100,000
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.
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.
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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.
Read reviews and learn more about Revolut car loans
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Variable, Secured
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.
Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 6.24% would cost $35,880.27 including fees.
Read reviews and learn more about loans.com.au car loans
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Fixed, Secured, $5,000-$100,000
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.
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.
Read reviews and learn more about OurMoneyMarket car loans
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Up to 5 years old, Variable, Secured
Used Car Loan with no monthly or ongoing fees, with a fixed rate for the life of the loan. Fast online application. Good credit history. Stable employment history and Australian citizenship or PR required.
Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 7.39% would cost $36,854.29 including fees.
Read reviews and learn more about loans.com.au car loans
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Variable, Secured
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.
Read reviews and learn more about MOVE Bank car loans
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Variable, Secured
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.
Read reviews and learn more about Teachers Mutual Bank car loans
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Mozo has partnered with one of Australia’s leading car finance brokers, Fido Finance, to help you find a car loan match.
Sound good? To get started, simply provide a few details on what you’re looking for and Fido Finance can help you lock in a great car loan rate.
Excellent Credit, $5,000 - $75,000
Competitive low rates for borrowers with excellent credit on 1-7 year loans from $5,000 up to $75,000, plus free extra repayments. Winner of Mozo's Experts Choice Excellent Credit Unsecured Personal Loan 2024 and Excellent Credit Secured Personal Loan 2024 awards ^. Min. income of 25k after tax, to apply.
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.
Read reviews and learn more about OurMoneyMarket personal loans
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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.
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.
Read reviews and learn more about Revolut personal loans
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Fixed
Borrow up to $50,000 unsecured. Perfect if you earn more than $22,100 p.a. and have good to excellent credit. Multi-year winner of Mozo’s Experts Choice Unsecured Personal Loan Award, 2021, 2022, 2023 & 2024^'
Repayment terms from 2 years to 7 years. Representative example: a 5 year $30,000 loan at 6.75% would cost $35,430.23 including fees.
Read reviews and learn more about NOW Finance personal loans
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$5,000-$75,000
Competitive fixed rates on loans up to $75,000 depending on your credit score. Zero monthly account keeping fees, no exit fees and no early repayment fees. Make weekly, fortnightly or monthly repayments, over 1 to 7 years managed entirely online, at any time. Fast and easy, 100% online application.
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.
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Excellent Credit, $5,000 - $100,000
Give your home a refresh with the 2025 Mozo award-winning provider OMM. Borrow up to $100,000 for loan terms 1-7 years. Flexible weekly, fortnightly or monthly repayment options. No monthly, early repayment or exit fees. Fast 100% online application.
Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,278.12 including fees.
Read reviews and learn more about OurMoneyMarket personal loans
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Car sales have been up and down this year. Part of the problem is high vehicle costs but there have also been challenges of poor supply levels for a number of brands.
Although one million new vehicles have been sold in Australia this year, according to the Federal Chamber of Automotive Industries, recent sales levels have been weaker. In fact, October’s sales were down 8% down on the same month in 2023. The market has certainly eased in the second half of 2024.
With current economic headwinds not helping, the change of season might offer some optimism. As we enter the last month of the year car dealers typically look to unload excess stock at a discount and so it’s often a good time to consider a car purchase. The NRMA actually rates the end of year as one of the best times to buy a car overall.
For now, car loan rates have been steady in recent months and in this regard continue to be favourable. The average new car loan rate in the Mozo database is 7.58% p.a. Meanwhile, the average for used cars has ticked up a touch to 8.10% p.a.
Let's take a look at the top options in Mozo Database below.
Lowest rate new car loan (fixed): Harmoney Low Rate Car Loan Excellent Credit (fixed, secured) - rates from 5.66% p.a. (6.45% p.a. comparison rate*)
Lowest rate new car loan (variable): loans.com.au New Car Loan - Special – rates from 6.24% p.a. (7.36% p.a. comparison rate*) – cars up to 5 years old (secured, variable)
Lowest rate used car loan (fixed): Harmoney Low Rate Car Loan Excellent Credit (fixed, secured) - (3-year term) – rates from 5.66% p.a. (6.45% p.a. comparison rate*)
Lowest rate used car loan (variable): Community First Bank Car Loan – rates from 6.29% p.a. (7.35% p.a. comparison rate*) – car up to 5 years old (secured loan)
Lowest rate new car loan (fixed): RACV Green Car Loan - rates from 5.79% p.a. (6.49% p.a. comparison rate*) (secured)
Lowest rate new green car loan (variable): Community First Bank Green Car Loan (secured, variable) – rates from 5.89% p.a. (6.95% p.a. comparison rate*)
*Data as of December 1, 2024.
Finding the right car for you, at a good price, can be a challenging experience. We can’t help you navigate that road, but if you’re in the market for a car loan, we can help you find a great way to pay for your dream wheels.
A car loan can be a great way to finance the purchase of a new or used car, as it lets you spread your payments over a period of time, rather than taking a big hit all at once. You do pay interest of course, and you might want to consider whether fixed or variable rates are best for your needs.
A fixed rate will give you a precise repayment amount for the life of the loan, but you might be penalised if you want to make additional repayments or pay the loan out early.
A variable loan will generally have more flexibility around things like that, but you could end up paying more, if rates increase. Needless to say, if you want to save money, go for the lowest rate you can find.
Car loans can have things like sign up fees and monthly account fees, which can add up over time. Check out the comparison rate on the Mozo comparison table to give yourself an accurate guide to what you’ll actually be up for, including any fees.
Over the life of a loan your financial situation can change, so consider the level of flexibility you might want. For example, if you find yourself cashed up, you might want to make extra repayments or pay out your loan early without paying a penalty. Or, if things become tighter, a redraw facility could be an option to give you some extra cash when you need it. This kind of flexibility may add to your overall loan amount or monthly repayments, so always check the fine print before you sign on the dotted line.
If you’re looking to hit the road in a new set of wheels go to Mozo.com.au to compare car loans and start your journey.
A car loan is a type of personal loan that is used for purchasing a new or used vehicle. These loans are usually paid at an agreed-upon interest rate (often secured against the car) over a period ranging from 1 to 7 years. For the right type of borrower, a car loan can help get you on the road sooner!
Choosing between a fixed or variable interest rate can significantly impact your monthly car loan repayments and total loan cost.
Here’s how each option works:
Fixed rate car loans lock in your interest rate for the entire loan term. This means your repayments stay the same throughout the loan period, making it easier to budget and plan. If market interest rates increase, your loan payments won't be affected.
However, fixed rates come with trade-offs. You won't benefit if market rates decrease, and many lenders charge early repayment penalties on fixed-rate loans. This means paying off your loan ahead of schedule could result in additional fees.
Variable rate car loans move up or down during your loan term, typically following the Reserve Bank of Australia's benchmark rates. While this introduces some uncertainty to your repayments, variable rate loans often offer more flexibility.
The key advantage of variable rate loans is the ability to repay extra without penalties. If you plan to pay off your loan early or make additional payments, a variable rate loan is more advantageous.
Your car loan repayments depend on a few factors such as the cost of your car, the size of your loan and interest, for example. In fact, when financing your next vehicle, small differences in interest rates can lead to significant savings over time.
Whether you're looking at new or used cars, choosing the right loan could save you a lot of cash over the life of your loan. Consider this example: on a $30,000 car loan over a 7-year term, the difference between a 12.74% and 5.14% interest rate amounts to $9,705 in savings. That's nearly $10,000 that could stay in your pocket simply by securing a better rate.
The headline interest rate isn't the only cost you'll face with a car loan because additional fees can significantly impact the total cost of your loan. This is where the comparison rate becomes crucial.
Comparison rates incorporate both the interest rate and other costs like fees, giving you a more accurate picture of the loan's total cost. Australian law requires lenders to display comparison rates alongside advertised rates so that you get a good idea of how much you’ll really be paying.
So as you look at the products on this page, be sure to check the comparison rate.
Generally speaking, a good car loan combines low rates with useful features that make management easy. Here are the key features to look for:
Your interest rate directly impacts how much you'll pay over the life of your loan. Even a small difference in rates can lead to substantial savings. For instance, reducing your rate by just a few percentage points could save you a lot over a 7-year loan term.
Always look for loans with low or no ongoing fees. While individual fees might seem small, they add up over time. Some of the fees you’ll want to keep in mind include:
Application or establishment fees
Monthly or annual service fees
Early repayment fees
Late payment penalties
The best car loans offer features that help you manage your loan effectively:
Extra repayment capability
Redraw facility access
Choice of payment frequency
Early repayment options with minimal penalties
There are a couple of different types of car loans to suit different needs and circumstances. Here are the main types of car loans available:
Designed specifically for new vehicles, these loans often feature lower interest rates due to the lower risk associated with new cars. They're usually secured against the vehicle being purchased.
These loans cater to buyers of pre-owned vehicles. Interest rates might be slightly higher than new car loans as used cars are often of lower value than a brand new car.
Using your vehicle as collateral, secured loans typically offer lower interest rates compared to unsecured options. The car serves as security for the lender, reducing their risk and your interest rate.
These allow you to switch your existing car loan to a new lender, potentially securing better rates or more favourable terms. These loans are useful if your credit score has improved or moving on to a lower rate provider.
Finding the right car loan means making a careful comparison of different options. Consider these main factors:
Check the comparison rate, not just the headline rate
Calculate the total cost over the entire loan term
Review all fees
Check the loan features and flexibility
Verify any restrictions or conditions
Remember, the lowest interest rate isn't always the best deal – consider the full package of features, fees, and flexibility when making your decision.
Each year, Mozo conducts a comprehensive review of car loans for the Mozo Experts Choice Awards. Their experts analyse hundreds of loans to identify the best value options for Australian borrowers.
Out of 347 personal loan products from 79 lenders compared to the 2025 awards. Some of the car loan winners include:
IMB Bank Car Loan (Fixed, Secured) (Car Loan Award)
Greater Bank New Car Loan (Fixed, Secured) (Car Loan Award)
Heritage Bank Car Loan (Fixed, Secured) (Car Loan Award)
MOVE Bank New Car Loan (Fixed, Secured) (Car Loan Award)
Police Bank Driveaway Car Loan (Fixed, Secured) (Car Loan Award)
Harmoney Low Rate Car Loan Excellent Credit (Fixed, Secured) (Excellent Credit Car Loan Award)
RACQ Bank Green Car Loan, Car Loan Special (Fixed) (Green Car Loan Award, Car Loan Award)
Queensland Country Bank Green Car Loan (Variable) (Green Car Loan Award)
To view the full list of winners, click the button below, or read the awards criteria in the methodology report found here.
To help you dodge a car loan trap, look out for the following tell-tale signs...
Interest rate is too high
Treat high car loan interest rates like bad omens and steer clear of them! When you secure your car to a loan, the rate should be reasonable rather than high. For a clear picture on the kind of rate you can expect, compare car loans at the top of the page.
Too many fees
Car loans with competitive interest rates can still sting you with monthly and sign up fees. It's a trap that can come back to haunt you over time. For instance, say you take out a $15k car loan and pay it off over a 5 year contract. Even if you have a low $7 monthly fee, over the course of the loan it will amount to a tidy sum of $420. Wouldn't you rather have that money in your bank account?
Not enough flexibility
There's nothing worse than choosing a car loan without enough flexibility when you need it. For instance, one car loan we compare allows you to make extra loan repayments, though there is no redraw facility available. For some this may be too constraining. It's important to weigh up flexibility with interest rates and fees, as you may be happy to compromise on the interest rate for the features you want.
Car loans are typically cheaper than regular personal loans because they are often secured against the car purchase. As you know, shiny new vehicles are valuable assets, so when you tie one to a loan as collateral, you sign a contract stating that your provider can claim your car if you default on the loan. In return for this security, providers offer more competitive rates, meaning you end up paying much less in interest!
When it comes to buying a used vehicle with a secured car loan, your options are generally limited. This makes sense, given second-hand cars can be risky purchases. New cars on the other hand have warranties and can be resold more easily. If you want to buy a used car, shop around here at Mozo, as some lenders can secure cars that have been on the road for a few years.
Yes, you can get a guarantor on a car loan. These types of car loans can be handy for customers struggling to get lending approval on their own, such as people with bad credit, minimal or no credit history or young people.
How does a guarantor car loan work? Well, it’s when a family member or friend guarantees your loan, meaning they put up their assets as collateral or agree to make the remaining repayments should you default on the loan.
So if you opt for this type of car loan, ensure you make all your regular repayments in full and on time.
It is possible to get a car loan as a student, but you’ll need to do some shopping around to find a good deal. Whether you opt to take out a loan with a bank, credit union, online or peer-to-peer lender, you’ll likely find an option to suit you.
Before you start your search for the right car loan, it’s crucial that you figure out exactly how much you can afford to borrow and pay back. Remember to budget for things like the interest rate, application fee, any ongoing fees and potential costs you may face (such as a late fee). Also keep an eye out for free extra repayments, it’ll give you the flexibility to put extra towards your loan if you want to.
The main difference between a personal loan and a car loan is that a car loan is secured against a vehicle you intend to buy, whereas a personal loan isn’t. Instead, a personal loan can be used to purchase a range of different things, and can be either secured (to say a vehicle or your home) or unsecured (meaning you don’t put up any assets as collateral).
It’s important to keep in mind that opting to secure your vehicle against the loan often means you’ll receive a lower interest rate. This will save you money over the life of the loan.
Whether you're looking for a$50,000 car loan for a luxury buy or a $5,000 loan for a second-hand set of wheels, it's super easy to compare car loans here at Mozo. Once you begin studying the tables at the top of this page, you'll begin to notice the key benefits of each loan. When you're ready, choose your car loan by clicking on a blue "go to site" icon beside the product of your choice. You'll have the opportunity to apply via the provider's site.
Finance isn't so hard when you have calculators to do the sums for you! Here are three seriously useful ones we've developed for an even more thorough car loan comparison...
A novated lease is another way to finance a new or used car. It is an arrangement where you make repayments on the vehicle with your pre-tax salary. You must make the arrangement with your employer under ‘salary sacrifice’.
Ultimately, a novated lease can actually reduce your taxable income. Before tax, your employer makes the repayments on your behalf to your chosen financial institution. These repayments can cover the price of the car as well as ongoing running costs as well (which could include fuel, maintenance and insurance).
A chattel mortgage is a formal financial term that essentially describes a car or equipment loan for a business. The “chattel” refers to the car or equipment, while the “mortgage” is another term for loan.
The way that it works is the chattel mortgage allows a business to buy a car or equipment straight away. Then, from the income the particular asset generates, the loan is paid down incrementally (usually over 2 to 5 years).
Like a regular car loan, if a business is unable to make their regular repayments, they may face repossession of the vehicle by their loan provider.
Depending on your financial situation, leasing a car may be a better option. However there are some pros and cons to doing this. These include:
Pros
Monthly lease payments tend to be cheaper than car loan repayments
Some car leases come with a maintenance package whether the upkeep costs are included in your lease payments
Easier to switch to newer models when you want to
If you take out a novated lease, it reduces your taxable income
Cons
You don’t own the vehicle (and you cannot claim it as an asset)
You can’t modify the car
You may face driving restrictions, such as a limited amount of kilometres over a certain period of time
More costly over time
You cannot sell the car
Yes, you can get a car loan without holding a licence. Depending on which state you are buying the car in, you may be able to buy and register the car as well without a licence.
Remember, when applying for a car loan you will need identification documents to prove that you are you. So instead of a driver's licence you can use a combination of your passport, identification/photo card, Medicare card, as well as your utility bill.
Yes, the type of car can affect your car loan options, mainly the price of the car and whether your is new or used.
Some lenders have borrowing limits that may not go as high as you like if you are buying a brand new sports car. For example, one loan may only let you borrow up to $50,000 while another $100,000.
Similarly, whether your car is brand new or used will determine your eligibility for certain loans. Some loans only allow you to buy new or demo cars, while others may allow you to buy vehicles up to 7 years.
Get all your documents ready like 100 points of ID, proof of income and details of your assets and liabilities. You'll need to have a clean credit record, although this doesn't necessary rule you out. Want to know what car loan amount you can afford? Check out our what car can you afford guide.
Most car loan applications can be done online, and approval can take as little as a few hours or even minutes. If you prefer to apply in person, visit a local branch of your chosen provider (if there is one), or call its customer service hotline.
Want to apply right now? Scroll up to the top of this page and click on a "go to site" button beside the car loan you want. Best of luck, and enjoy your new set of wheels!
Poor service misleading advice, do not waste your time
Read full reviewPoor service misleading advice, do not waste your time
The staff at RACQ bank are extremely accommodating. Products and Services are hassle free and communication is prompt and helpful. I am coming to the end of my 5 year loan term and would definitely use their services in future.
Read full reviewThe staff at RACQ bank are extremely accommodating. Products and Services are hassle free and communication is prompt and helpful. I am coming to the end of my 5 year loan term and would definitely use their services in future.
One of the worst finance provider. They offered me 24% interest rate for a car loan, while RACV offered 10%. Clearly they are just here to rob people
Read full reviewOne of the worst finance provider. They offered me 24% interest rate for a car loan, while RACV offered 10%. Clearly they are just here to rob people
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