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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.
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 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.
Read reviews and learn more about OurMoneyMarket car loans
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Including Demo, Fixed, Secured
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 8.39% would cost $37,714.40 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 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.
Read reviews and learn more about OurMoneyMarket car loans
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Fixed, Secured
Get a fixed rate car loan for amounts over $20,000 with Police Credit Union. Make additional repayments at any time without penalty. Free online redraw. Available for new and used cars. Can also be used for motorcycles, boats, caravans, trailers or any registrable vehicle.
Repayment terms from 1 year to 5 years. Representative example: a 5 year $30,000 loan at 6.48% would cost $35,497.21 including fees.
Read reviews and learn more about Police Credit Union 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.
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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.
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.
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.
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.
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.
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.
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.
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.
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
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.
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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