Compare Melbourne Car Loans

At Mozo you can compare Melbourne car loans until you find the best deal for you, whether it’s for a preloved vehicle or a brand new car.

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Melbourne car loan comparisons on Mozo - last updated 25 May 2024

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  • New Car Loan - Special

    Home Owner Discount, Including Demo, Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.24% p.a.
    7.36% p.a.based on $30,000
    over 5 years

    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.

    Compare
    Details
  • Used Car Loan

    Fixed, Secured, No vehicle age limit

    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 $75,000 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
    Details
  • Car Loan

    Up to 7 years old, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.49% p.a.
    6.84% p.a.based on $30,000
    over 5 years

    Purchase or refinance a new or used car, caravan or motorbike, up to 7 years old. Fixed rate with terms from 1 to 7 years. Make additional payments and free redraw. No early payout penalties. No monthly fees. Quick start application in less than 5 minutes online.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.49% would cost $35,460.64 including fees.

    Compare
    Details
  • New Car Loan - Special

    Including Demo, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    8.19% p.a.
    9.30% 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^. 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 8.19% would cost $37,541.41 including fees.

    Compare
    Details
  • New Car Loan

    Fixed, Secured

    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 $75,000 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
    Details
  • Clean Green Car Loan

    Home Owner, New or Used, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.49% p.a.
    7.61% p.a.based on $30,000
    over 5 years

    Get a 1% discount on your car loan interest rate if you buy a qualifying green car. Winner of Mozo's Experts Choice Green Car Loan 2021 award^. 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 6.49% would cost $36,090.64 including fees.

    Compare
    Details
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^See information about the Mozo Experts Choice Car loans 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.

Car loan lenders we compare at Mozo

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Car loan resources

Reviews, news, tips and guides to help find the best car loan for you.

Getting a car loan: What you’ll need to know

When purchasing a vehicle (new or secondhand) you might opt to take out a car loan to help cover the cost and then pay it off gradually over time. Just keep in mind that on top paying off the loan, you’ll likely need to pay interest charges plus any additional fees.

Choosing a car loan provider

When it comes to taking out a car loan in Melbourne there are loads of different lender options to choose from, such as big banks, smaller credit unions, peer-to-peer and online lenders. It all comes down to your own individual financial circumstances and preferences. Use our car loan comparison table below to see what’s out there.

What can I use my car loan for?

Car loans can be used to buy all types of vehicles for personal use such as a van, ute, car, SUV or even a motorbike.

If you’re keen on buying a car but don’t have the funds to cover the cost up front, then you might take out a car loan to help pay for it and gradually pay it off bit by bit over time.

When you start searching for a loan, you’ll soon see that there are lots of different loan types to pick from, such as a secured or unsecured loan and a fixed or variable interest rate, depending on your specific needs and circumstances.

How do I apply for a car loan?

Most lenders now offer the ability to apply for car loans online. So, whether you live in Melbourne or another Australian city probably won’t make much of a difference as you’ll most likely be able to apply for a loan and submit all the relevant documentation (such as proof of identity and income) online.

Which lenders in Melbourne offer car loans?

In Melbourne, there are loads of car loan lenders to choose from. And besides, with most banks offering the ability to apply for car loans online, it shouldn’t matter which Australian city you live in. Here are some of the different lending options you’ll have to pick from:

  • Big banks: If you’re a little more traditional then you might go for a car loan from a big bank like NAB, Westpac or the Commonwealth Bank. Just remember that the bigger banks tend to offer poorer rates than smaller lenders do.

  • Customer-owned banks & credit unions: Smaller mutual banks and credit unions generally have better interest rates than the bigger banks as they usually opt to put their profits back into their customers by offering lower rates to their customers.

  • Peer to peer lenders: Peer to peer lenders tend to offer different rate tiers according to your credit history, so you could potentially get a better rate for having a clean credit history.

What are the key features to look for in a car loan?

  • Interest rate: In addition to repaying the loan you’ll also need to pay a percentage of interest on the amount you borrow. Remember to spend some time shopping around for a car loan with a competitive interest rate so you can lower the amount of interest you have to pay. When choosing a car loan you’ll generally get to pick between either a variable or fixed interest rate - which we’ll talk about more later on.

  • Fees: Depending on the lender, your car loan might come with some extra fees. This could include upfront application fees, ongoing monthly service fees, late payment fees (if you miss a repayment), or loan termination fees.

  • Comparison rate: The headline rate displayed at the top of a loan usually only factors in the main interest for the loan. To get a better depiction of what the total loan cost will be, you’ll want to check the car loan comparison rate. The comparison rate factors in the interest rate plus any other fees that come with the loan.

  • Features: Some features to look for in a car loan include flexible repayments (so you can tailor your repayments around your budget and regular pay schedule), the ability to make extra loan repayments and a redraw facility (this lets you redraw on any extra repayments you’ve made should you need access to extra funds). Be aware, however, that more features often means more fees, so make sure to use them if you want to get your money’s worth.

Is a fixed or variable interest rate better?

When comparing car loans you’ll be able to choose between either a fixed or variable interest rate depending on which is more suited to your own individual needs.

  • Fixed interest rate: When you opt for a fixed rate loan, you’re locked into the one rate for the entire life of the loan. Which could be great if you like to know that your interest rate and repayments won’t ever change. Just keep in mind that often one of the downfalls of having a fixed rate is that you might get charged a fee if you try to pay your loan off early.

  • Variable interest rates: Variable interest rates can change based on market movements, so if you go for a variable rate loan then your interest rate and repayment amount has the potential to rise or fall throughout your loan term. One of the perks of having a variable rate, however, is that they generally don’t come with early repayment or exit fees if you want to pay your loan off early.

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JP Pelosi
RG146
Managing editor

Jean-Paul (JP) Pelosi is an experienced journalist and editor who has contributed to many of Australia's leading media outlets including The Guardian, News.com.au, Domain.com.au, Investment Magazine and ANZ's Bluenotes. He has also edited news and communications for large financial services companies such as CommBank, Suncorp, Allianz and Amex. He loves a well told story and applying his editorial experience to content that readers both care about and enjoy. JP heads up our writing team.

Melbourne Car Loan FAQs

How can I increase my chances of being approved for a car loan?

While you can’t guarantee the outcome of your car loan application, there are a few different things that you can do to increase your chances of being approved, such as:

  • Clean up your credit history: Your lender will check your credit history to help determine whether or not you should be approved for a car loan. So it’s super important to get it into good shape before filling out an application if you want to better your chances of being approved.

  • Prove that you’re a good borrower: Before applying for a loan you’ll want to have at least a few months of good financial practice under your belt to show the lender that you’re a good borrower that’s worth taking a risk on. Things like paying your bills on time or making regular deposits into your savings account each month to prove that you’re responsible with money.

  • Shop around: Shop around and compare car loans and only fill out an application if you feel confident that you’ll be approved. Use Mozo’s Rate Matcher tool to compare loans based on your credit score so you can get a better idea of which loans you’ll likely be eligible for.

What do I need to apply for a car loan?

Once you’ve compared and found your car loan match and are ready to apply, you’ll likely need to supply the lender with the following information upon submitting your loan application:

  • Proof of income: This might include bank statements or payslips in order to show the lender that your current financial circumstances will allow you to commit to repaying the loan.

  • Proof of savings: The lender might want to see proof of genuine savings to ensure that you can manage your money responsibly.

  • Proof of liabilities: This could be any debt you’ve accumulated from a credit card or home loan.

  • Proof of insurance: Some lenders won’t approve you for a car loan unless you’ve taken out comprehensive car insurance. Use our car insurance comparison tool to compare policies.

  • Identification: You’ll likely need to show your driver’s license, proof of age card, passport, utility bills, one-to-two year’s worth of tax returns and bank statements or another form of identification.

Other additional information that you might need to provide is:

  • Car VIN number (to verify that the car’s not stolen/has money owing on it)

  • Registration plate 

  • Motor number 

  • Car make, year and model

I don’t live in Melbourne, what are my options for getting a car loan?

Like we said, nowadays lenders offer car loans online. So it probably won’t matter where in Australia you’re based since you can more than likely apply for it online. You can check out our Sydney Car Loans or Brisbane Car Loans pages for more options.


Car Loan Reviews

Latitude Car Loan
Overall 1/10
Worst finance provider

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 review

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

Price
1/10
Features
1/10
Customer service
6/10
Convenience
1/10
Trust
1/10
Less
Jaz, Victoria, reviewed about 2 months ago
Toyota Insurance Car Loan
Overall 10/10
Easy and quick!!!

We recently took our a car loan with our local toyota dealer. The turnaround was insanely quick. Our car arrived much quicker than anticipated and we approached a broker regarding a loan. The amount of documentation they required seemed excessive however we trusted our broker. I started to compile all of the required documents when the dealer reached out again. They matched the rate offered by the broker and had us approved same day. We decided to proceed with the dealer as they made the process incredibly smooth. The monthly fees seemed reasonable compared to other loans offered. This loan had $8 p/month fee whereas Macquarie was $15 per month. Ideally I would've liked a more flexible car loan however, we agreed to lock in a fixed price and put any additional money we had into our home loan instead.

Read full review

We recently took our a car loan with our local toyota dealer. The turnaround was insanely quick. Our car arrived much quicker than anticipated and we approached a broker regarding a loan. The amount of documentation they required seemed excessive however we trusted our broker. I started to compile all of the required documents when the dealer reached out again. They matched the rate offered by the broker and had us approved same day. We decided to proceed with the dealer as they made the process incredibly smooth. The monthly fees seemed reasonable compared to other loans offered. This loan had $8 p/month fee whereas Macquarie was $15 per month. Ideally I would've liked a more flexible car loan however, we agreed to lock in a fixed price and put any additional money we had into our home loan instead.

Price
10/10
Features
7/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Billie, Victoria, reviewed about 2 months ago
ANZ Unsecured Personal Loan
Overall 7/10
The bank is very useful and helpful.

The bank is very useful and helpful.

Read full review

The bank is very useful and helpful.

Price
8/10
Features
8/10
Customer service
8/10
Convenience
8/10
Trust
8/10
Less
Leah, Victoria, reviewed 2 months ago

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