new car loans

New Car Loans

Thinking of buying a new car? A new car loan is a personal loan used to help purchase a brand new car, or sometimes a vehicle that’s one to three years old. These loans are usually secured by the value of the car and interest rates are usually lower than they are on unsecured car loans. Mozo compares a range of new car loans from some of Australia's top lenders below.

Fact Checked

New car loan comparisons on Mozo - last updated 28 September 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

    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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    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 $64,000. Easy online application, receive a response in minutes and approved funds within 24-48 hours!

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    Car Loan - Excellent Credit

    Fixed, Unsecured

    Interest rate
    comparison rate
    Monthly repayment
    5.95% p.a.to 19.99% p.a.
    5.95% p.a.to 21.0% p.a.based on $10,000
    over 3 years

    Terms from 2 to 5 years. Representative example: a 3 year $10,000 loan at 5.95% would cost $11,538.74 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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    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.

    Available for all New and Used cars up to 7 years. A quick and easy, 100% online application with loans up to $75,000. No printing. No paper. No fuss. No monthly account keeping fees, no exit fees and no early repayment fees.

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    Used Car Loan

    Dealer Only, Up to 4 years old, 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.

    Used Car Loan with no monthly or ongoing fees, with a fixed rate for the life of the loan. Fast online application.

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    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 or Used, 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
    4.89% p.a.
    5.53% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 4.89% would cost $34,377.58 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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    Low Rate Car Loan Special Offer

    Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    4.69% p.a.
    5.01% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 4.69% would cost $33,888.17 including fees.

    Beyond Bank’s Car Loan offers super low rates with no ongoing service fee, and flexible features to help you save over the term of your loan. Winner of Mozo’s Experts Choice Car Loan 2021 Award.

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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.

Car loan lenders we compare at Mozo

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FAQ

Finding the right new car loan

It’s no secret that choosing the perfect car loan is tough and knowing what to look for is even tougher. So to help make sure you’re on the right track, we’ve answered some of the most commonly asked questions about car loans below.

What kind of new car loan can I get?

Once you start comparing car loans, you’ll come across two types, ‘secured’ and ‘unsecured’ car loans. When choosing the right loan for you, you’ll need to factor in the benefits and drawbacks of both types of loans, like:

  • Secured car loan - One of the most common car loans you’ll find when buying a new car are secured car loans. If you opt for a secured car loan, you will be using your brand new car as security against the loan in exchange for a lower interest rate.
  • Unsecured car loan - But if you don’t want to use your shiny, new car as security, you can apply for an unsecured car loan. With an unsecured car loan, the lender won’t repossess your car if you default on the loan, but unsecured loans usually have higher interest rates.

One of the things you’ll notice once you start shopping around on car loans is that majority of the loans you’ll find are secured. This is because unlike a used car, your shiny, new car is a pretty valuable asset and once you sign up for your loan, your lender has permission to repossess your car if you default on the loan.

Fixed vs variable interest rates: what’s better for my new car loan?

One of the many terms you’ll come across when you start comparing car loans are ‘fixed’ and ‘variable’ interest rates. When it comes to interest rates, there is no ‘better’ rate as you should be choosing the rate that best suits your financial situation.

  • Fixed rates: If you choose a fixed interest rate, your rate will not change throughout your loan, so you’ll always know how much interest you are paying to your lender. On the downside, a fixed rate loan will mean that you may have to pay a fee if you pay out your loan early.
  • Variable rates: On the other hand, a variable interest rate can change according to the market, either increasing or decreasing. But while the amount of interest you pay may change, there are rarely early repayment fees for a variable rate car loan. This means that you’ll be able to pay off your loan early at no extra cost and use flexible features like the extra repayments facility.  

Should I also look at the comparison rate when comparing new car loans?

Yes, although the interest rate is an important part of your loan, you should also take the comparison rate into account. A comparison rate gives you a more accurate look at what your loan could cost you, as it factors in not only the interest rate, but any fees or other charges you may have to pay during your loan. Just keep in mind that the advertised comparison rate can only give you a rough estimation for your new car loan and that the actual comparison rate for your loan will depend on your loan amount and term.

What’s the best way to compare new car loans?

Similarly to getting a used car loan, one of the downsides about using a car loan to get yourself a brand new car is the amount of money you're going to have to borrow. So be sure to take the time to compare the features that are going to help out in the long run (and save you some cash), like:

Flexible repayment features

Even though you may have to pay a few fees during your loan, there are a couple of features that could come in handy, like:

  • Extra repayments - Having the option to make extra repayments can help you cut down on interest throughout your loan. But depending on your lender and loan you choose, there may be a limit to how much extra you can repay and you may also be charged a fee to do so.
  • Redraw facility - Another nifty tool is the redraw facility that lets you redraw any extra repayments to pay for unexpected bills or other sudden expenses. Keep in mind though that some lenders may set a minimum redraw amount and charge a fee.

Fees

There are many types of fees your loan may have, including:

  •  Upfront or application fees - This is a one-off payment fee you will be charged once you are approved for the loan and can be between $0 - $600.
  • Ongoing fees - Think of this as a maintenance fee that keeps your loan alive, it’s usually paid monthly or as an annual fee.
  • Late repayment fees - If you don’t make a repayment on time, you may be charged a late repayment fee.
  • Break fees - A break fee is charged by lenders if you decide to end a fixed rate loan before the fixed term. You are typically charged a percentage of your original loan amount, so they can become pricey.
  • Discharge fees - Also known as an exit fee, discharge fees are charged to cover the cost of closing the loan and can range between hundreds to thousands of dollars.

The length of the loan

Car loans typically last between 3-5 years, with many borrowers opting for a three year loan term to pay the loan off sooner. And while a shorter loan term could help cut your interest down, it does mean that your repayments will be larger. On the other hand, a longer loan term may mean smaller repayments, but you will be forking out more in interest.

How much can I borrow if I want to buy a new car?

The amount you can borrow will depend on your credit score and financial circumstance, which your lender will use to determine your borrowing capacity. Also worth noting, loan amount can range greatly, including $10000 personal loans to $50000 personal loans.


Can I apply for a new car loan online?

Absolutely! Since there are a number of car loans in Australia, it makes sense to compile a heap of them into one, easy to manage place, like our car loan comparison tool. Simply click the ‘go to site’ button once you’ve found the right loan for your needs to go direct to the lender’s site, where you can start your application.

What other costs I should be aware of before buying a new car?

Yes, like any type of car, new or old, there are some additional costs you’ll need to factor into your budget, such as: 

  • Car Insurance - Before you even get behind the wheel of your new car, you’ll need to sort out your car insurance.  First you’ll need to purchase Compulsory Third Party (CTP) insurance before you start comparing comprehensive car insurance policies. Many lenders may not even approve your car loan until you have a car insurance policy ready to go. 
  • Service - If you’re treating yourself to a fancy, new car, be prepared to pay a little more at your regular car services.
  • Dealer delivery - This is the fee a dealer will charge to bring your new car from the maker to you.
  • Registration - rego is an expense that you’ll have to factor into your budget every year. Plus, when you first buy your new car, there’s also a charge for the registration transfer.
  • Roadside assistance - there's also a roadside assistance subscription you'll need to sign up for, which is typically paid on a monthly or annual basis. This service will help you out in life's most unpredictable situations, from flat batteries to emergency fuel.
Can I still get a new car loan if my credit is bad? 

You may still be able to take out a new car loan if you do have a bad credit history, but you should keep in mind that you will have to pay a much higher interest rate. Mozo does not compare bad credit car loans because of the high interest rates, so you may be better off looking into a secured car loan or repairing your credit history first.

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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.

More FAQs about new car loans

Can I get pre-approved for a new car loan?

Yes, some lenders do offer pre-approval for car loans that are being used to purchase a new car. When you apply to be pre-approved, you will need to submit all relevant documentation, like your credit history, bank statements and payslips. The lender will then evaluate your financial circumstance and determine how much you can afford to borrow.

One of the big benefits of being pre-approved for a car loan is that you can then negotiate the price of the car, since you already know how much you can spend. But this also means that if the price exceeds your pre-approved amount, you will have to walk away.

We should also mention that car loan pre-approvals are often available for a short period of time like, 2-3 months, so you’ll need to act quickly once you are pre-approved.

What if I need to switch car loans?

If you find that you are no longer on the most competitive rate or that your repayments are becoming too difficult to manage, you are able to refinance your car loan. You can compare your refinance options by using our car loan refinance comparison tool.


What do I need to apply for a new car loan?

Once you’ve found your perfect loan, it’s time to gather all the necessary documentation to get ready to apply. While every lender will have different requirements, some of the most common things you may be ask to provide in order to get a new car loan include: 

  • Your current income - Lenders will ask to see previous bank statements or payslips so they can see that you will be able to repay the loan through a steady income.
  • Your savings -  You will also need to provide proof of genuine savings, as to a lender, this shows that you are able to be responsible with money.
  • Any liabilities - This could be any other debt you may have, like a credit card or your mortgage

If you want to jump in, perhaps check out $5000 personal loans, or if secondhand is more your vibe, look into the used car loans.

Car Loan Reviews

Pepper Money Car Loan
Overall 2/10
Disappointing customer service experience

The most horrible customer service ever. Do not return calls, do not actually fix the problem. No relevant understanding of customers needs or wishes. Have a no compromising view. The worst company I have ever had to deal with. Beyond disappointed, with the time wasting, false assurances of decisions and call backs, not to mention the call on hold timeframe ( don't try this in your lunch break).

Read full review

The most horrible customer service ever. Do not return calls, do not actually fix the problem. No relevant understanding of customers needs or wishes. Have a no compromising view. The worst company I have ever had to deal with. Beyond disappointed, with the time wasting, false assurances of decisions and call backs, not to mention the call on hold timeframe ( don't try this in your lunch break).

Price
2/10
Features
1/10
Customer service
1/10
Convenience
1/10
Trust
1/10
Less
Nell, New South Wales, reviewed 6 days ago
Pepper Money Car Loan
Overall 1/10
Terrible service. AFCA should investigate them.

The most unhelpful bunch I have ever come across with false statements about their own bank's (Westpac) inability to reflect a payment on their account the same day despite you sending it by NPP (Osko). After 5 attempts to get a statement showing a loan that was settled 3 days ago, I kept getting the same unhelpful response that I must wait at least another 2 days and then eventually after spending many hours on the phone had a rude supervisor tell me off. I will never deal with this institution again.

Read full review

The most unhelpful bunch I have ever come across with false statements about their own bank's (Westpac) inability to reflect a payment on their account the same day despite you sending it by NPP (Osko). After 5 attempts to get a statement showing a loan that was settled 3 days ago, I kept getting the same unhelpful response that I must wait at least another 2 days and then eventually after spending many hours on the phone had a rude supervisor tell me off. I will never deal with this institution again.

Price
1/10
Features
1/10
Convenience
1/10
Trust
1/10
Less
Chris, Queensland, reviewed about 1 month ago
RAC Car Loan
Overall 1/10
stupid reasoning for refusal refinance

Tried to get a loan I already have refinanced, they use the audacity to tell me i can’t afford it - yet i am already paying a higher repayment than what RAC would offer me. Very unhappy, have since gone elsewhere and been approved for the refinancing. wasted my time for 2 weeks.

Read full review

Tried to get a loan I already have refinanced, they use the audacity to tell me i can’t afford it - yet i am already paying a higher repayment than what RAC would offer me. Very unhappy, have since gone elsewhere and been approved for the refinancing. wasted my time for 2 weeks.

Price
1/10
Features
1/10
Customer service
1/10
Convenience
1/10
Trust
1/10
Less
Dannii, Western Australia, reviewed 2 months ago

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