CAR LOANS
Compare Used Car Loans & Rates
By Sean Callery
A snapshot of car loan statistics
- Average car loan amount is $33,489
- Average new car loan amount is $46,583
- Average used car loan amount is $28,116
- Average car loan interest rate is 10.14% p.a.
- Average car loan term is 5 years
- Average age of a used car purchased is 8.3 years from a dealer
- Total amount borrowed with new car loans in December 2024 quarter: $4.7 billion
- 35.36% of car loans are for brand new cars, while 64.64% are for used cars
- The Northern Territory has the highest car loan amount at $38,511, while Tasmania has the lowest at $29,211
- 1 in 4 (26%) Australians used car finance for their most recent car purchase
How much do Australians borrow through car loans?
Australians collectively borrow around $4.7 billion each quarter in fixed-term personal loans for road vehicles, according to the Australian Bureau of Statistics.
Car loan borrowing has been steadily increasing since March 2023, following a sharp decline in early 2020 due to the COVID-19 pandemic. Borrowing levels are now at an all-time high.
Average car loan in Australia
The average car loan in Australia is $33,489, which includes loans for new and used cars, utes, motorcycles, vans, and trucks. For new cars, the average loan is $46,583, while for used cars, it's $28,116, according to the latest data from Money.com.au.
The average car loan size is largest in the Northern Territory and lowest in Tasmania. This could be attributed to factors like limited competition and logistics in the NT, as well as the preference for larger vehicles commonly purchased in the region.
Here’s a breakdown of the average loan amounts by vehicle type on our database:
- Cars is $33,786
- Motorbikes is $14,452
- Trucks is $76,493
- Utes is $41,660
- Vans is $32,717
As shown in the table below, monthly repayments for borrowers vary based on the average loan amounts by vehicle type. Keep in mind these car loan repayment amounts are based on the average interest rate of 10.14% p.a., as recorded by the Reserve Bank of Australia (RBA).
Type of vehicle | Car |
|---|---|
Average monthly repayment | $720 |
Total interest paid over a 5-year term | $9,425 |
Total amount paid | $43,211 |
Type of vehicle | Motorbike |
Average monthly repayment | $308 |
Total interest paid over a 5-year term | $4,032 |
Total amount paid | $18,484 |
Type of vehicle | Truck |
Average monthly repayment | $1,631 |
Total interest paid over a 5-year term | $21,338 |
Total amount paid | $97,831 |
Type of vehicle | Ute |
Average monthly repayment | $888 |
Total interest paid over a 5-year term | $11,621 |
Total amount paid | $53,281 |
Type of vehicle | Van |
Average monthly repayment | $697 |
Total interest paid over a 5-year term | $9,127 |
Total amount paid | $41,844 |
| Type of vehicle | Average monthly repayment | Total interest paid over a 5-year term | Total amount paid |
|---|---|---|---|
Car | $720 | $9,425 | $43,211 |
Motorbike | $308 | $4,032 | $18,484 |
Truck | $1,631 | $21,338 | $97,831 |
Ute | $888 | $11,621 | $53,281 |
Van | $697 | $9,127 | $41,844 |
Phil Collard, Car Loans Expert at Money.com.au
“How much you can borrow and the loan term you’ll be offered largely depends on your credit score and the overall strength of your application. It’s important to borrow within your means to ensure manageable repayments. Engaging with a trusted broker with access to a wide range of lenders goes a long way to securing a loan facility suited to your requirements and objectives."
Phil Collard, Car Loans Expert at Money.com.au
What are the most common car loan purposes?
Although the term ‘car loan’ is commonly used, it can actually be applied to finance nearly any type of vehicle.
That said, the most common reason people take out a car loan in Australia is to purchase a car, accounting for 78.9% of all loans, based on loan requests received by Money.com.au in 2024. Utes followed at 11.5%, with motorcycles at 6.8%, vans at 1.9%, and trucks at 0.7%.
Looking closer at the data, car loan applicants were fairly evenly distributed across different purchase options:
- 36.3% were for used cars from a dealer
- 35.3% for brand-new cars
- 28.3% for private sales
Meanwhile, the average age of a used car from a dealer was 8.3 years and 12.8 years for a private sale.
Average financial position among car loan borrowers
Car loan borrowers in Australia have an average credit score of 818, according to over 13,000 loan requests through Money.com.au. This indicates an 'excellent' credit score, though it’s slightly lower than the national average of 855, based on Equifax data.
This strong credit score average may be influenced by the income of car loan borrowers, which stands at $120,481 on average. Income averages varied across states as follows:
- SA: $145,595
- WA: $139,706
- Tas: $135,234
- Qld: $127,378
- Vic: $121,542
- ACT: $114,827
- NSW: $102,504
- NT: $98,607
Around four-fifths of car loan applicants (80.14%) were employed full-time, while 9.25% worked part-time and 7.43% were casual workers. The remaining 3.12% were listed as ‘other’, which may suggest they are self-employed.
Phil Collard, Car Loans Expert at Money.com.au
"We recently uncovered in a survey that 15% of Australians consider their personal loan or car loan the most stressful debt they have. Gen Z reported the highest stress levels at 21%, followed by Millennials at 17%, Gen X at 12% and Boomers at 8%. This highlights just how important it is to assess your overall financial situation before taking on a car loan. A finance broker can be a valuable resource in helping you navigate this and find the best option for your needs."
Phil Collard, Car Loans Expert at Money.com.au
How many Australians use car loans to finance their vehicle purchase?
In a recent survey of over 1,000 Australians, we found that 26% used a loan from a bank, lender or dealership to finance their car purchase. The majority (61%) didn’t require financing and paid for their car outright, while 4% financed through a novated lease and 10% reported not owning a car.
Unsurprisingly, the majority of car loan requests in our database come from New South Wales (31%), followed by Victoria (26%) and Queensland (22%). After that, Western Australia accounts for 11%, South Australia for 6.4%, the ACT for 1.6%, Tasmania for 1.4%, and the Northern Territory for 0.6%.
