melbourne car loans

Compare Melbourne Car Loans

If you’re based in Melbourne and looking for the right car loan to get you in the driver’s seat of a new set of wheels, you’ve come to the right place! At Mozo you can compare car loans until you find the best deal for you, whether it’s for a preloved vehicle or a brand new car.

Melbourne car loan comparisons on Mozo - last updated 17 April 2021

Search promoted car loans below or do a full Mozo database search. Advertiser disclosure.
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    New Car Loan

    Including Demo, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    4.67% p.a.
    5.22% p.a.based on $30,000
    over 5 years

    Terms from 3 to 5 years. Representative example: a 5 year $30,000 loan at 4.67% would cost $34,096.76 including fees.

    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^.

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    Car Loan - Excellent Credit

    Fixed, Unsecured

    Interest rate
    comparison rate
    Monthly repayment
    6.39% p.a.to 17.49% p.a.
    6.39% p.a.to 21.0% p.a.based on $10,000
    over 3 years

    Terms from 2 to 3 years. Representative example: a 3 year $10,000 loan at 6.39% would cost $11,510.63 including fees.

    Be rewarded for your good credit history with low rates. Plus there are no ongoing fees and you can pay off your loan with no early repayment penalties. Simply apply online and get a quote in minutes.

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    No Fee Secured Car Loan

    Fixed

    Interest rate
    comparison rate
    Monthly repayment
    4.45% p.a.to 15.45% p.a.
    4.45% p.a.to 15.45% p.a.based on $30,000
    over 5 years

    Terms from 2 to 7 years. Representative example: a 5 year $30,000 loan at 4.45% would cost $33,516.53 including fees.

    Pay zero fees on loans up to $100,000 with NOW Finance. With no establishment fee, ongoing fees or early payout fee. What’s more, get your personalised interest rate in two minutes with no impact on your credit score!

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    Car Loan

    Fixed

    Interest rate
    comparison rate
    Monthly repayment
    4.89% p.a.to 8.89% p.a.
    5.44% p.a.to 9.46% p.a.based on $30,000
    over 5 years

    Terms from 3 to 7 years. Representative example: a 5 year $30,000 loan at 4.89% would cost $34,276.58 including fees.

    Enjoy competitively low rate car loans from 4.89% (comparison rate 5.44% p.a.) between $10,000 and $100,000 for new, demo and used vehicles. Take advantage of flexible 3, 5 or 7 year loan terms. No early repayment or exit fees. You must be 21 years or over to qualify and earn above $35,000.

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    Car Loan

    Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    5.35% p.a.
    5.65% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 5.35% would cost $34,507.61 including fees.

    A quick and easy, 100% online application. No printing. No paper. No fuss. No monthly account keeping fees, no exit fees and no early repayment fees.

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    Secured Car Loan

    Fixed

    Interest rate
    comparison rate
    Monthly repayment
    4.74% p.a.to 16.01% p.a.
    5.01% p.a.to 16.31% p.a.based on $30,000
    over 5 years

    Terms from 3 to 7 years. Representative example: a 5 year $30,000 loan at 4.74% would cost $33,949.23 including fees.

    Low personalised rates, ideal for borrowers with excellent credit. No monthly account fees, no early payout fees, so you can pay off your loan sooner. Borrow between $5,000 and $63,000. Easy online application, receive a response in minutes and approved funds within 24-48 hours!

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    Mozo Experts Choice 2020
    Secured Car Loan

    Fixed

    Interest rate
    comparison rate
    Monthly repayment
    6.79% p.a.
    7.16% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 6.79% would cost $35,729.09 including fees.

    Reach your goal sooner without being penalised with $0 early payout fee. $0 monthly fees. Choose to make either monthly, fortnightly or weekly repayments to suit your income and budget. Winners of Australia's Best Large Credit Union in 2020.

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    Clean Green Car Loan

    New, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    3.97% p.a.
    4.51% p.a.based on $30,000
    over 5 years

    Terms from 3 to 5 years. Representative example: a 5 year $30,000 loan at 3.97% would cost $33,525.38 including fees.

    No monthly or ongoing fees. Get a 0.70% 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^.

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    Car Loan

    Up to 5 years old, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    5.99% p.a.
    6.63% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 5.99% would cost $35,290.67 including fees.

    Purchase or refinance a new or used vehicle, up to five years old. Choose a loan term from one to seven years. To be eligible you must be over 18, receiving a regular income and an Australian resident.

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^See information about the Mozo Experts Choice Car loans Awards

*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.

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.

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Car loan resources

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

FAQ

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
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

loans.com.au Used Car Loan (Fixed) review
Overall 1/10
Very unprofessional, and pathetic service.

They just wasted my one week for no reason. After completing online assessment, I got a phone call and got pre approval which was useless. And then from that point they start taking me in rounds. Every second day a new person contacts and asks for the same document which I have provided. At last I decided to withdrawal the application. Very unprofessional, and pathetic service.

Read full review

They just wasted my one week for no reason. After completing online assessment, I got a phone call and got pre approval which was useless. And then from that point they start taking me in rounds. Every second day a new person contacts and asks for the same document which I have provided. At last I decided to withdrawal the application. Very unprofessional, and pathetic service.

Price
1/10
Features
1/10
Customer service
1/10
Convenience
1/10
Trust
1/10
Less
Nasir, Victoria, reviewed about 20 hours ago
Bank Australia New Car Loan (Fixed) review
Overall 2/10
2 weeks and still no answer regarding a car loan!

Incredibly disappointed with Bank Australia’s car loan application. Particularly given I’m already a bank Australia customer. I have been waiting for 2 weeks regarding even a “conditional approval”. No one has been able to give me an explanation or reasoning as to why the process is taking so long, particularly when other lenders offer a 24-48 hour turnaround. I will be seeking a different lender and will be considering moving my banking elsewhere because of how frustrating this process has been.

Read full review

Incredibly disappointed with Bank Australia’s car loan application. Particularly given I’m already a bank Australia customer. I have been waiting for 2 weeks regarding even a “conditional approval”. No one has been able to give me an explanation or reasoning as to why the process is taking so long, particularly when other lenders offer a 24-48 hour turnaround. I will be seeking a different lender and will be considering moving my banking elsewhere because of how frustrating this process has been.

Price
5/10
Features
6/10
Customer service
2/10
Convenience
2/10
Trust
2/10
Less
Cynthia, Queensland, reviewed 12 days ago
Pepper Money Car Loan review
Overall 1/10
Don't touch with a 10-foot barge pole.

As the rules here prohibit me from expressing my true feelings (no foul language allowed), suffice to say that this company is dubious at best. Terrible customer service, extremely high interest rates, dodgy practices at payout, unexplained charges when transacting, etc. You're better-off going to a bank or simply staying without!

Read full review

As the rules here prohibit me from expressing my true feelings (no foul language allowed), suffice to say that this company is dubious at best. Terrible customer service, extremely high interest rates, dodgy practices at payout, unexplained charges when transacting, etc. You're better-off going to a bank or simply staying without!

Price
1/10
Features
1/10
Customer service
1/10
Convenience
1/10
Trust
1/10
Less
Davis, Western Australia, reviewed 18 days ago

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