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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.
Fixed, Secured, No vehicle age limit
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.
Read our Mozo Review to learn more about the OurMoneyMarket Used Car Loan
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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 6.24% would cost $35,295.27 including fees.
Read our Mozo Review to learn more about the Police Credit Union Better Car Loan Special Offer
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Fixed, Secured
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.
Read our Mozo Review to learn more about the OurMoneyMarket New Car Loan
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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 our Mozo Review to learn more about the MOVE Bank Any Age Car Loan
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Variable, Secured
Repayment terms from 1 year to 6 years. Representative example: a 5 year $30,000 loan at 8.99% would cost $37,456.30 including fees.
Read our Mozo Review to learn more about the Teachers Mutual Bank Car Loan
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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.
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 our Mozo Review to learn more about the NOW Finance Unsecured Personal Loan
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Excellent Credit
Competitive low rates for borrowers with excellent credit on 1-7 year loans from $2,001 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 our Mozo Review to learn more about the OurMoneyMarket Low Rate Personal Loan
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Fixed
Fast, easy and 100% online, this is a low cost loan with no ongoing fees or extra repayment penalties. It's perfect for savvy borrowers with great credit. If you’re over 18 and earn above $30,000, you could qualify (other eligibility criteria may apply).
Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 5.76% would cost $35,173.52 including fees.
Read our Mozo Review to learn more about the Harmoney Unsecured Personal Loan
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Excellent Credit
Travel the globe with competitive low rates for borrowers with excellent credit on 1-7 year loans from $2,001 up to $75,000, plus free extra repayments. Winner of Mozo's Experts Choice award for 2024 ^. 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.
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Secured
Access fast finance on loans from $3,000 to $25,000 with a Jacaranda Finance Personal Loan. Terms from 25-48 months. Check if you qualify with no impact on your credit score. Enjoy a speedy, online approval.
Repayment terms from 2 years to 4 years. Representative example: a 3 year $10,000 loan at 14.95% would cost $14,324.71 including fees.
Read our Mozo Review to learn more about the Jacaranda Finance Express Personal Loan
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Car loan offers are quite good in the middle of 2024, which coincides well with a return to more normalised car production and sales. According to car selling websites such as Carsales, consumers are back in the box seat and in a better position to negotiate with increased vehicle options.
However, if you missed the end of financial year sales, most experts suggest shopping at the end of month to secure a more favourable deal. That means the first part of the month might be the best time to get your finances in order.
To this end, the Mozo database currently shows some sound car loan options. The current average interest rate for a new car loan is 7.36% p.a. and an 8.04% p.a. average for used car loans. These are by no means the best rates available, though.
Currently, the Mozo database offers rates as low as 5.66% p.a. for both second-hand and new vehicles—a testament to the fact that shopping around and comparing car loans usually pays off.
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 green car loan (fixed): NRMA - Electric Vehicle Loan (fixed, secured) – rates from 5.79% p.a. (6.49% p.a. comparison rate*)
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 July 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 you use to purchase a vehicle. It's a secured loan, which means the vehicle you are purchasing is used as security against the loan you are taking out.
These types of loans aren’t exclusive to new cars either: there are a range of providers that offer car loans for used vehicles too.
The right car loan for your needs will depend on a range of factors, such as the age of your car, what sort of flexible loan features you're after and the amount you want to borrow.
Just like personal loans, there's a huge range of car loans out there vying for your attention from both bank and non bank lenders. So how do you decide? Read on!
Like other loan products, car loans come with either a fixed or variable interest rate. Ultimately, the type of interest rate you choose can impact what you pay each repayment period.
A fixed rate car loan is where you receive the same interest rate over the entire life of the loan term. If you stick to your regular repayments, you will pay exactly the same amount to your lender each payment cycle. Plus, if interest rates spike during your loan period and car loan rates change, your loan won't be affected because you've locked it in.
The downside of fixed interest rates is that you won't benefit from any market changes if rates are reduced. Some lenders also charge early repayment penalties on fixed rate car loans - meaning if you pay off your entire loan in full before your loan term is up, you could face a hefty fee.
The other option is a variable rate car loan. Unlike a fixed car loan, a variable interest rate can go up or down during your loan term, typically in line with benchmark interest rates set by the Reserve Bank Of Australia. On the one hand this could work in your favour, but it could also end up costing you more if the rate goes up.
There is one solid benefit of a variable rate car loan though: you rarely will pay an early repayment penalty if you square things away ahead of time. So if you plan to throw a little extra cash towards your car loan, and don't mind the risk of a potential rate rise, a variable loan may be the option for you.
The truth is the interest rate on your car loan is unlikely to be the only cost you face. There may be a range of other additional fees and charges that you need to factor in. This is where the comparison rate comes in.
The comparison rate incorporates things like the interest rate, fees and charges, so that you, the customer, has a more rounded view of what the loan is going to cost. Make sure you check the comparison rate on a car loan before applying, it may be a lot higher than the headline rate. (Quick note: Australian lenders must display comparison rates when advertising loan products).
If you'd like to compare the difference between a fixed or variable interest rate car loan, check out our car loan comparison calculator.
Many car loans come with features designed to make your life easier as you pay them off, such as optional additional loan repayments and redraw facilities.
Below is a run through of these and other features you'll find in a top car loan.
Ideally you want a competitive interest rate on your car loan, one that’s lower than most. For example, you’ll see a wide range of available interest rates on Mozo's car loan comparison table, so let’s do a quick calculation to see the difference.
With an interest rate of 12.74%, for instance, you’ll hand over $15,488 in interest for a $30,000 car loan over a 7 year loan term (on a monthly loan repayment plan). On the other hand, a much lower rate of 5.14%, will save you $9,705 (which equates to $5,783). It just goes to show you how much that one number can affect your hip pocket!
Individually, monthly fees and signup costs may appear small, but they really do add up. One easy way to factor in all the costs involved with a potential car loan is to look at the comparison rate. This rate type is made up of overheads like the headline rate, application and ongoing fees.
Just remember, that even if you settle on a car loan with low fees, most providers will bill you more for making a late repayment.
Whether or not a car loan should have an early loan repayment penalty will depend on who you ask and the interest rate you choose. Some people like sticking to the original loan repayment schedule as it suits their financial situation best, while others prefer keeping their early loan repayment options open.
If making extra repayments suits your style and you use the feature efficiently, you'll end up paying less in interest. Remember, the rate is only applied to how much you owe.
Another top car loan feature is a redraw facility. You can use this to access any additional funds paid into your car loan outside of regular ongoing repayments. Keep in mind that some providers set redraw minimums and have redraw fees, which may cost more than what the flexibility is worth to you. Also, redraw facilities only come with variable rate loans.
From online car loans to those for people with a history of bad credit, there’s a car loan to suit every budget and lifestyle. You can choose from an unsecured or secured loan, fixed or variable interest rate and from a range of different lender types, too.
Typical car loans include:
Finding a low interest car loan can mean saving hundreds of dollars over the life of your loan. And the good news is, it’s easy to compare car loans right here on Mozo!
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!
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
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 reviewWe 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.
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