CAR LOANS
Compare Low Doc Car Loans & Rates
By Sean Callery
A snapshot of car loan statistics
- Average car loan amount is $34,282
- Average new car loan amount is $46,055
- Average used car loan amount is $28,658
- Average car loan interest rate is 8.92% p.a.
- Average car loan term is 5 years
- Average age of a used car purchased is 8 years
- Total amount borrowed with new car loans in September 2025 quarter: $4.9 billion
- 32.85% of car loans are for brand new cars, while 67.15% are for used cars or didn't specify
- The ACT has the highest car loan amount at $37,812, while Tasmania has the lowest at $27,726
- 1 in 4 (26%) Australians used car finance for their most recent car purchase
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How much do Australians borrow through car loans?
Australians collectively borrow around $4.9 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 $34,282, which includes loans for new and used cars, utes, motorcycles, vans, and trucks. For new cars, the average loan is $46,055, while for used cars, it's $28,658, according to the latest data from Money.com.au.
The average car loan size is largest in the nation's capital and lowest in Tasmania.
Here’s a breakdown of the average loan amounts by vehicle type on our database:
- Cars is $34,360
- Motorbikes is $14,816
- Trucks is $47,162
- Utes is $39,808
- Vans is $32,461
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 8.92% p.a., as recorded by the Reserve Bank of Australia (RBA).
Type of vehicle | Car |
|---|---|
Average monthly repayment | $712 |
Total interest paid over a 5-year term | $8,355 |
Total amount paid | $42,715 |
Type of vehicle | Motorbike |
Average monthly repayment | $307 |
Total interest paid over a 5-year term | $3,603 |
Total amount paid | $18,419 |
Type of vehicle | Truck |
Average monthly repayment | $977 |
Total interest paid over a 5-year term | $11,469 |
Total amount paid | $58,631 |
Type of vehicle | Ute |
Average monthly repayment | $825 |
Total interest paid over a 5-year term | $9,680 |
Total amount paid | $49,488 |
Type of vehicle | Van |
Average monthly repayment | $673 |
Total interest paid over a 5-year term | $7,894 |
Total amount paid | $40,355 |
| Type of vehicle | Average monthly repayment | Total interest paid over a 5-year term | Total amount paid |
|---|---|---|---|
Car | $712 | $8,355 | $42,715 |
Motorbike | $307 | $3,603 | $18,419 |
Truck | $977 | $11,469 | $58,631 |
Ute | $825 | $9,680 | $49,488 |
Van | $673 | $7,894 | $40,355 |
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 83.09% of all loans, based on loan requests received by Money.com.au. Utes followed at 11.01%, with motorcycles at 3.67%, vans at 1.68%, and trucks at 0.56%.
Looking closer at the data, car loan applicants were fairly evenly distributed across different purchase options:
- 32.85% for brand-new cars
- 32.22% were for used cars from a dealer
- 22.13% for private sales
Meanwhile, the average age of a used car from a dealer was 5.9 years and 10.9 years for a private sale.
New data from Money.com.au reveals that only 21% of Australians would trust AI-generated advice on car finance and personal loans. This makes it one of the areas where people are least likely to rely on AI information.
Average financial position among car loan borrowers
Almost half of Australian car loan borrowers (49.43%) had an excellent credit score of 1,026, based on analysis of more than 19,000 loan requests through Money.com.au. A further 26.13% recorded a score of 793, while 12.59% sat at 697. At the lower end, 6.16% had a score of 560, and 5.31% reported a very low score of 229.
This strong credit score average may be influenced by the income of car loan borrowers, where 51.29% of applicants reported an annual income higher than $100,000. The average loan amount varied based on the applicant's living situation shown below:
- Homeowner without mortgage: $45,880
- Homeowner with mortgage: $41,559
- Boarder: $32,623
- Renter: $30,943
- Living with parents: $27,491
The vast majority of car loan applicants (88.5%) were employed full-time, while 2.96% worked part-time and 2.15% were casual workers. The remainder were listed as ‘other’, which may suggest they are self-employed, on the pension or receiving Centrelink.
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 car 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%.
