Why compare car loans with Money
30+ Australian lenders to choose from
Personalised rates
No credit score impact
$200 best match guarantee
Best car loan interest rate comparison November 2024
Compare car loans in Australia from a selection of lenders, with interest rate ranges based on the borrower's credit score and other factors.
Harmoney | |
Car loan interest rate | 5.66% p.a. - 20.07% p.a. |
Comparison rate* | 6.45% p.a. - 20.98% p.a. |
Loan amounts available | $2,000 - $70,000 |
Now Finance | |
Car loan interest rate | 6.75% p.a. - 21.65% p.a. |
Comparison rate* | 6.75% p.a. - 21.65% p.a. |
Loan amounts available | $15,000 – $100,000 |
Great Southern Bank | |
Car loan interest rate | 6.49% p.a. - 15.04% p.a. |
Comparison rate* | 6.95% p.a. - 15.54% p.a. |
Loan amounts available | $5,000 - $100,000 |
Liberty Financial | |
Car loan interest rate | 6.52% p.a. - 19.19% p.a. |
Comparison rate* | 6.95% p.a. - 20.77% p.a. |
Loan amounts available | $5,000 - $80,000 |
Moneyplace | |
Car loan interest rate | 6.52% p.a. - 19.19% p.a. |
Comparison rate* | 6.95% p.a. - 20.77% p.a. |
Loan amounts available | $5,000 - $80,000 |
OMM | |
Car loan interest rate | 6.57% p.a. - 18.99% p.a. |
Comparison rate* | 7.19% p.a. - 21.78% p.a. |
Loan amounts available | $2,001 - $75,000 |
Loans.com.au | |
Car loan interest rate | 6.09% p.a. - 12.99% p.a. |
Comparison rate* | 7.21% p.a. - 14.10% p.a. |
Loan amounts available | $5,000 - $150,000 |
Bank of Melbourne | |
Car loan interest rate | 6.49% p.a. - 12.99% p.a. |
Comparison rate* | 7.69% p.a. - 14.14% p.a. |
Loan amounts available | $3,000 - $100,000 |
BankSA | |
Car loan interest rate | 6.49% p.a. - 12.99% p.a. |
Comparison rate* | 7.69% p.a. - 14.14% p.a. |
Loan amounts available | $3,000 - $100,000 |
St.George | |
Car loan interest rate | 6.49% p.a. - 12.99% p.a. |
Comparison rate* | 7.69% p.a. - 14.14% p.a. |
Loan amounts available | $3,000 - $100,000 |
Westpac | |
Car loan interest rate | 6.49% p.a. - 12.99% p.a. |
Comparison rate* | 7.69% p.a. - 14.14% p.a. |
Loan amounts available | $10,000 - $100,000 |
Plenti | |
Car loan interest rate | 7.19% p.a. - 12.99% p.a. |
Comparison rate* | 7.82% p.a. - 13.66% p.a. |
Loan amounts available | $10,000 - $100,000 |
Commbank | |
Car loan interest rate | 6.49% p.a. - 10.49% p.a. |
Comparison rate* | 7.90% p.a. - 11.86% p.a. |
Loan amounts available | $4,000 - $100,000 |
NRMA | |
Car loan interest rate | 7.29% p.a. - 16.99% p.a. |
Comparison rate* | 8.00% p.a. - 17.77% p.a. |
Loan amounts available | $5,000 (no max specified) |
RACV | |
Car loan interest rate | 7.29% p.a. - 16.99% p.a. |
Comparison rate* | 8.00% p.a. - 17.77% p.a. |
Loan amounts available | $5,000 (no max specified) |
ANZ | |
Car loan interest rate | 7.49% p.a. - 19.99% p.a. |
Comparison rate* | 8.18% p.a. - 20.58% p.a. |
Loan amounts available | $5,000 - $50,000 |
Society One | |
Car loan interest rate | 8.20% p.a. - 23.99% p.a. |
Comparison rate* | 8.27% p.a. - 28.66% p.a. |
Loan amounts available | $5,000 - $70,000 |
NAB | |
Car loan interest rate | 8.49% p.a. - 20.49% p.a. |
Comparison rate* | 9.54% p.a. - 21.49% p.a. |
Loan amounts available | $5,000 - $55,000 |
Wisr | |
Car loan interest rate | 8.59% p.a. - 15.49% p.a. |
Comparison rate* | 10.12% p.a. - 17.03% p.a. |
Loan amounts available | $10,000 - $147,000 |
Latitude Financial | |
Car loan interest rate | 9.49% p.a. - 29.99% p.a. |
Comparison rate* | 10.93% p.a. - 31.83% p.a. |
Loan amounts available | $5,000 (no max specified) |
| Car loan interest rate | Comparison rate* | Loan amounts available | |
|---|---|---|---|
Harmoney | 5.66% p.a. - 20.07% p.a. | 6.45% p.a. - 20.98% p.a. | $2,000 - $70,000 |
Now Finance | 6.75% p.a. - 21.65% p.a. | 6.75% p.a. - 21.65% p.a. | $15,000 – $100,000 |
Great Southern Bank | 6.49% p.a. - 15.04% p.a. | 6.95% p.a. - 15.54% p.a. | $5,000 - $100,000 |
Liberty Financial | 6.52% p.a. - 19.19% p.a. | 6.95% p.a. - 20.77% p.a. | $5,000 - $80,000 |
Moneyplace | 6.52% p.a. - 19.19% p.a. | 6.95% p.a. - 20.77% p.a. | $5,000 - $80,000 |
OMM | 6.57% p.a. - 18.99% p.a. | 7.19% p.a. - 21.78% p.a. | $2,001 - $75,000 |
Loans.com.au | 6.09% p.a. - 12.99% p.a. | 7.21% p.a. - 14.10% p.a. | $5,000 - $150,000 |
Bank of Melbourne | 6.49% p.a. - 12.99% p.a. | 7.69% p.a. - 14.14% p.a. | $3,000 - $100,000 |
BankSA | 6.49% p.a. - 12.99% p.a. | 7.69% p.a. - 14.14% p.a. | $3,000 - $100,000 |
St.George | 6.49% p.a. - 12.99% p.a. | 7.69% p.a. - 14.14% p.a. | $3,000 - $100,000 |
Westpac | 6.49% p.a. - 12.99% p.a. | 7.69% p.a. - 14.14% p.a. | $10,000 - $100,000 |
Plenti | 7.19% p.a. - 12.99% p.a. | 7.82% p.a. - 13.66% p.a. | $10,000 - $100,000 |
Commbank | 6.49% p.a. - 10.49% p.a. | 7.90% p.a. - 11.86% p.a. | $4,000 - $100,000 |
NRMA | 7.29% p.a. - 16.99% p.a. | 8.00% p.a. - 17.77% p.a. | $5,000 (no max specified) |
RACV | 7.29% p.a. - 16.99% p.a. | 8.00% p.a. - 17.77% p.a. | $5,000 (no max specified) |
ANZ | 7.49% p.a. - 19.99% p.a. | 8.18% p.a. - 20.58% p.a. | $5,000 - $50,000 |
Society One | 8.20% p.a. - 23.99% p.a. | 8.27% p.a. - 28.66% p.a. | $5,000 - $70,000 |
NAB | 8.49% p.a. - 20.49% p.a. | 9.54% p.a. - 21.49% p.a. | $5,000 - $55,000 |
Wisr | 8.59% p.a. - 15.49% p.a. | 10.12% p.a. - 17.03% p.a. | $10,000 - $147,000 |
Latitude Financial | 9.49% p.a. - 29.99% p.a. | 10.93% p.a. - 31.83% p.a. | $5,000 (no max specified) |
Snapshot of car loan interest rates in Australia
- The lowest car loan interest rate is 5.66% p.a. (comparison rate 6.45% p.a.*)
- A 1% rate discount and shorter loan term could save the average borrower $4,562^
Source: Money's car loans database as at 4 November 2024*. ^Based on the average car loan rate quoted above and the average loan amount ($47,566) requested among a sample of 10,000 Money customers, with the loan repaid in four years instead of five.
What are the current cheapest car loan interest rates?
The cheapest car loan interest rate currently available is 5.66% p.a. (comparison rate 6.45% p.a.), based on loans on Money’s database. That's a fixed rate secured car loan for borrowers with a perfect credit score and very strong application overall.
Here are the lowest car loan rate currently available on Money's database of lenders for different types of loans and car purchases:
- Green car loan: 5.49% p.a. (5.84% p.a. comparison rate)
- New car loan: 5.66% p.a. (6.45% p.a. comparison rate)
- Unsecured car loan: 5.76% p.a. (6.55% p.a. comparison rate)
- Used car loan: 5.76% p.a. (6.55% p.a. comparison rate)
- Fixed rate car loan: 5.66% p.a. (6.45% p.a. comparison rate)
- Variable rate car loan: 6.24% p.a. (7.36% p.a. comparison rate)
These rates are based on Money's database of lenders offering car loans to consumers. See our separate guide for business car loan rates.
Car loan interest rates: advertised versus actual rates
For most borrowers, it's unlikely you'll be offered a lender's lowest advertised car loan rate.
Car loan interest rates generally come in ranges. This is the same for other kinds of personal loans. Where your actual rate will sit within the lender's rate range will depend on your application.
The riskier your car loan application is, the higher the interest will be.
This is why it's very important to take 'advertised rates' on car loans with a large pinch of salt.
10 factors that determine your (actual) car loan interest rate
1. Your credit score
Borrowers with the highest (best) credit scores, generally qualify for the best car finance rates in Australia. Lenders like borrowers with a proven track record of managing credit responsibly, which is what your credit score is designed to show.
If you need a bad credit car loan, you'll be charged a higher interest rate, generally with more restrictive loan terms.
Avoid making multiple car loan applications in a short space of time as this can damage your credit score.
Find out what your credit score is for FREE before you apply for a loan.
2. The age and type of car
There are a few key points here:
- The cheapest car loans in Australia are generally ones available for electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs).
- Around 40% of the lenders we analysed offer a discounted car loan interest rate for EVs.
- Lenders offer the lowest car loan interest rates on brand new cars or demo models.
- Some lenders have tiered interest rates for used car loans that increase based on the car's age (so not all used cars will attract the same rate).
3. The car loan term
Some lenders charge higher interest rates on car loans with a longer term. Again this comes down to the greater risk for the lender when lending over a longer period.
You can use our car loan repayments calculator to estimate your repayments based on different terms.
4. The lender you choose
Car loan interest rates can vary massively from one lender to another. Comparing rates from multiple lenders based on your situation will help you find the lowest rates you qualify for.
But there's a right and a wrong way to do this:
Wrong: Making applications with multiple lenders to see what offers come back (which could hurt your credit score).
Right: Using a service like Money (or a car loan broker) to compare multiple interest rate offers, without it impacting your credit score.
5. Fixed or variable interest rate
Most car loan interest rates in Australia are fixed. In fact, over 75% of the car loans on Money's lender database come with a fixed interest rate.
But for lenders that do offer the option of a fixed and variable rate car loan, currently more fixed rates are lower. This can be a sign that lenders expect interest rates in the economy to fall from current levels.
6. Your financial position
You'll generally qualify for the lowest car loan interest rates if you have:
- A high, reliable income
- Low regular expenses relative to your income
- Low levels of overall debt (e.g. credit cards and other loans)
7. Your employment status
You may qualify for a lower car loan interest rate if you're employed full-time and have been in the same job and industry for a sustained period.
Casual and self-employed people can apply for a low doc car loan, but these usually come with higher interest rates.
8. Whether you own a property
Over the years, we've found it's common for lenders to consider whether the borrower owns a property when calculating their car loan interest rate.
Property owners generally qualify for lower car loan rates. Property owners who also have a high level of equity in their property (i.e. more of their home loan is paid off), get the lowest rates.
This might not seem particularly relevant for a car loan. But the way lenders look at it, it's another signal about how risky a borrower is.
Some lenders simply bundle this factor into the overall calculation, while others (Macquarie Bank is an example) advertise different car loan interest rates specifically for property owners.
9. Your loan amount
Your loan amount can impact your car loan interest rate. The impact could be either positive or negative depending on the situation. Here are two scenarios to illustrate the point:
- For an already higher risk borrower, a larger loan amount adds to the risk and the lender may reflect this with a higher interest rate.
- Some borrowers may charge a lower rate to low-risk borrowers with larger loan amounts (the same thing commonly happens with home loan rates).
10. Your loan-to-value ratio (LVR)
The loan-to-value ratio on a car loan is the car loan amount expressed as a percentage of the value of the car it's being used to finance.
A higher LVR (where you're borrowing a higher percentage of the car's purchase price) may mean a higher interest rate.
Note, some lenders will allow you to borrow more than 100% of the car's value. For example, you might get finance to buy an electric vehicle, plus a home charger and battery. If you own another vehicle, you may be able to borrow more than 100% of the value of a new car, using your current car as additional security.
How to get the best car finance deal (in 6 steps)
1
Get a SECURED car loan
Some lenders advertise unsecured personal loans as being 'car loans'. A secured car loan will almost always have a lower rate.
2
Apply for car loan pre-approval
Getting car loan pre-approval means you won't be rushed into a car loan with a high interest rate at the last minute.
3
Shop around
Only apply for a car loan once you've compared multiple lenders and you’re confident you’ve found the lowest interest rate you qualify for, with low fees.
4
Consider smaller lenders
Some of the cheapest car loan interest rates may be offered by lenders you've never heard of.
5
Match the loan to your car
For example, if you're buying an EV, be sure to take advantage of the discounts available with specialist 'green car loans'. If you're buying a brand new car, loans specifically for new cars typically offer lower interest rates than generic car loans.
6
Make sure your loan is flexible
Look for the flexibility to make extra repayments and pay off the loan early without penalty. 'Redraw' is another handy feature, as it means you can withdraw any extra repayments you have made if you need to access cash.
Give yourself a better chance of car loan approval
Shaun McGowan, Loans Expert
It’s a good idea to do some preparation before you start applying for car loans. Check your credit report so you can anticipate any issues and work out a comfortable budget for making car loan repayments each week, fortnight or month. Then only apply for car loans that are easily within your budget.
Shaun McGowan, Loans Expert
Red flags lenders look for when you apply for a car loan
ATM withdrawals
Frequent cash withdrawals from ATMs may raise concerns about possible gambling habits.
Payday loans
Taking out payday loans and repaying them over several pay periods can be viewed negatively by lenders.
Buy Now, Pay Later (BNPL)
While many Australians use BNPL services, significant usage could be a concern.
Gambling
Excessive online gambling can be a significant red flag for lenders.
Dishonoured direct debits
Dishonoured payments are a common reason for loan declines. Lenders will review the number of days your account was overdrawn and any dishonoured transactions over the past three months.
Account clearing
Withdrawing your entire salary shortly after it’s deposited—leaving little to no balance—can signal financial instability. Lenders want assurance that you will have enough money available for the loan repayments.
Am I eligible to get a car loan?
To qualify for a car loan, you'll typically need to meet these eligibility criteria:
- Be over 18 years of age
- Be an Australian citizen or permanent resident
- Have a regular source of income (most lenders look for six months of steady income)
- Have no major issues in your credit history
- Be buying a car that meets the lender's criteria (a new or used vehicle up to 12 years old, with no finance outstanding).
How to apply...
The exact process will depend on the lender you apply with, but typically it goes like this:
Step 1. Compare car loan providers Step 2. Complete a loan application Step 3. Provide supporting documents (payslips, bank statements etc.) Step 4. Get pre approved by the lender. Step 5: Go car shopping, then… Step 6: Apply for full loan approval based on your chosen car Step 7: Sign the loan contract and provide proof of car insurance to the lender Step 8: The loan funds will be transferred to the car seller directly
How we help you find the best car loan
1. Let us know who you are and what you're looking for
A little bit of information goes a long way in helping us find the right loans for you.
2. We securely analyse your data against each lender
This process finds the best loan offers that match your profile.
3. Get matched
You'll either see a range of qualified car loan offers, or a lending specialist will help you find your match.
Ready to compare car loans?
Get your best offers from multiple lenders. There's no obligation and checking your rates won't impact your credit score.
