Best Car Loan Rates From 5.66%

Q: Are auto loans unsecured?

Car loans can be both secured and unsecured , but the majority of them are secured, meaning the car is used as security against the loan. Should you fail the repay the loan, the car can be repossessed by the lender. Unsecured car loans (which are essentially personal loans) don't have the car as a security, but tend to come with higher rates to compensate for this.

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Lender	Car Loan	Interest Rate	Comparison Rate*	Monthly Repayment	Interest Type	Vehicle Type	Maximum Vehicle Age	Ongoing Fee	Upfront Fee	Total Repayment	Features	Link	Compare	Promoted Product	Disclosure
loans.com.au	loans.com.au New/Demo - Special	6.24% p.a.	7.36% p.a.	$583	Variable	New	No Max	$8	$400	$35,000	Available for purchasing new and demo vehicles $5,000 to $150,000 loan amount Redraw facility available up to $5000/day Required: Good credit history, stable employment history. Aus citizenship or PR.	More details	Compare	Promoted	Disclosure
Stratton Finance	Stratton Finance Car Loan (5 Years)	6.52% p.a.	6.95% p.a.	$587	Fixed	New, Used	No Max	$0	$350	$35,236	A leading Australian Finance Broker with proven experience you can trust We've assisted more than 150,000 customers access over $8 billion in finance! We are the experts at getting the keys in your hands	More details	Compare	Promoted	Disclosure
OurMoneyMarket	OurMoneyMarket Car Loan ($5k-$75k \| Fixed, Secured) (5 Years)	6.57% p.a.	7.19% p.a.	$588	Fixed	New, Used	No Max	$0	$250	$35,278	No vehicle age limit No ongoing or early exit fees 1-7 years loan terms. Pay monthly, fortnightly, or weekly	More details	Compare	Promoted	Disclosure
loans.com.au	loans.com.au Electric Car Loan	6.09% p.a.	7.21% p.a.	$581	Variable	New	No Max	$8	$400	$34,874		More details	Compare		Disclosure
IMB Bank	IMB Bank New Car Loan (5 Years)	6.24% p.a.	6.59% p.a.	$583	Fixed	New	No Max	$0	$250	$35,000		More details	Compare
Firstmac	Firstmac New/Demo - Special Car Loan	6.34% p.a.	7.46% p.a.	$585	Variable	New	No Max	$8	$400	$35,084		More details	Compare
MOVE Bank	MOVE Bank New Car Loan (5 Years)	6.45% p.a.	6.72% p.a.	$586	Fixed	New	No Max	$0	$195	$35,177		More details	Compare
Heritage Bank	Heritage Bank Car Loan (5 Years)	6.49% p.a.	6.49% p.a.	$587	Fixed	New, Used	No Max	$0	$0	$35,211		More details	Compare
Beyond Bank	Beyond Bank Low Rate Car Loan Special (5 Years)	6.49% p.a.	6.86% p.a.	$587	Fixed	New, Used	No Max	$0	$265	$35,211		More details	Compare
Great Southern Bank	Great Southern Bank Secured Fixed Car Loan (5 Years)	6.49% p.a.	6.95% p.a.	$587	Fixed	New, Used	No Max	$0	$225	$35,211		More details	Compare
Driva	Driva Car Loan (Excellent Credit) (5 Years)	6.50% p.a.	7.74% p.a.	$587	Fixed	New, Used	No Max	$0	$350	$35,219		More details	Compare
MoneyPlace	MoneyPlace New Car Loan (Excellent Credit) (5 Years)	6.52% p.a.	6.95% p.a.	$587	Fixed	New	No Max	$0	$0	$35,236		More details	Compare
Commonwealth Bank	Commonwealth Bank Secured Car Loan (5 Years)	6.99% p.a.	8.40% p.a.	$594	Fixed	New, Used	No Max	$15	$250	$35,634		More details	Compare
Latitude Financial Services	Latitude Financial Services Latitude Motor Loan (Fixed) (Secured) (5 Years)	9.49% p.a.	10.93% p.a.	$630	Fixed	New, Used	No Max	$13	$395	$37,795		More details	Compare
Alex Bank	Alex Bank Unsecured Personal Loan (5 Years)	12.74% p.a.	12.74% p.a.	$679	Fixed	New, Used	No Max	$0	$0	$40,716		More details	Compare
Harmoney	Harmoney Secured Car Loan (5 Years)	5.66% p.a.	6.45% p.a.	$575	Fixed	New, Used	No Max	$0	$275	$34,515		More details	Compare
RACV	RACV Finance New Car Loan (5 Years)	7.29% p.a.	8.00% p.a.	$598	Fixed	New	No Max	$0	$499	$35,889		More details	Compare
Bank of Queensland	Bank of Queensland Fixed Rate Flexible Car Loan (5 Years)	7.39% p.a.	8.19% p.a.	$600	Fixed	New, Used	No Max	$7.5	$195	$35,974		More details	Compare
Unity Bank	Unity Bank Fixed Car Loan (5 Years)	5.99% p.a.	6.34% p.a.	$580	Fixed	New, Used	No Max	$0	$250	$34,791		More details	Compare

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Important Information and Comparison Rate Warning

All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.

The comparison rates in this table are based on a loan of $30,000 and a term of 5 years unless indicated otherwise. The comparison rates for car loans and secured personal loans for the relevant amounts and terms are for secured loans unless indicated otherwise. The comparison rates for unsecured personal loans are applicable for unsecured loans only. WARNING: 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. Comparison rates are not calculated for revolving credit products.

Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for the term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Cheap November Car Loan Interest Rates & Deals

There's a wide range of car loans out there, with higher/lower rates depending on the age of the car, whether the loan is secured or not and whether the vehicle is electric or a hybrid. Whatever your circumstances are, there's likely a lot of variation between the highest and lowest rates available for you. It's well worth your time to do your research and find the cheapest car loan rates you qualify for.

Which lender is offering the lowest car loan rate?

In our database, here are a few of the lowest car loan offers on the market for different circumstances:

South West Slopes Credit Union: Five year variable rate car loan. Available for cars up to 36 months old. 5.79% p.a. (5.79% p.a. comparison rate*)
Harmoney: Unsecured fixed-rate five year loan. Rates from 5.76% p.a (6.55% p.a comparison rate*)
Horizon Bank: Green car loan. 5.79% p.a. (6.01% p.a comparison rate* )

For more information on how we’ve selected these products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of 1 November, 2024 . View disclaimer

How to get a low interest car loan?

There can be many ways to get a low-interest car loan, but one of the best ways could be to maintain a clean credit history. This tells lenders you're a trustworthy borrower, making them more likely to give you a good interest rate. Also, don't forget to shop around to see which lenders are offering the lowest rates. Secured car loans also tend to have a lower interest rate than unsecured loans, while newer cars often have lower rates than older models.

How to compare car loans

Here are some of the top things to consider when choosing a car loan:

Interest rate

Interest is the biggest cost of a car loan and is the rate you're charged per year on the outstanding loan balance.

Interest rates are either:

Fixed rate: The interest rate remains the same for the duration of the fixed term
Variable rate: The interest rate changes at the lender’s discretion

Loan period

The loan period of a car loan is usually between 1-7 years. The longer the loan, the smaller the repayments, but the more interest you will pay overall.

Repayments

Repayments are usually repaid monthly, however depending on which lender you choose you may have the flexibility to make repayments fortnightly or weekly.

Fees

Be aware of the fees charged by your lender, these often include:

Establishment fee

Ongoing Maintenance fee
Break fees
Discharge fee
Late payment fee

Compare fees between lenders to save on your loan. Try using the comparison rate as a guide, because the comparison rate is designed to reflect the cost of the loan in terms of interest and fees.

Balloon payment

A balloon payment is a 30-50% lump sum repayment of the loan that some borrowers opt to pay at the end of the loan term.

Balloons allow you to make smaller repayments over the loan term, but cost you more in interest.

What is a car loan and how does it work?

A car loan is a sum of money you borrow from a lender for the purpose of buying a vehicle. Like most loans, you pay back a car loan and its associated interest costs through regular repayments over an agreed period of time.

Car Loan Example

Jake get a ute

Jake wants to buy a $30,000 Toyota Hilux with $5,000 of his savings and a $25,000 car loan. He’s approved for a five-year loan at an interest rate of 5.00% p.a. with repayments of $472 per month and an upfront establishment fee of $400. Over the five year loan term, he will pay $33,707 for the Hilux, which includes:

$5,000 of his savings
$25,000 car loan
$400 car loan establishment fee
$3,307 in interest

Frequently Asked Questions

Is it better to borrow from the bank or from dealer?

Car loans and dealer finance can be acceptable methods of car financing, so long as you do your due diligence and shop around. Dealer finance can often have faster approval times and lower interest rates compared to car loans, but they can also be less flexible and more restrictive. If you're torn between the two, consider walking into a dealership with a pre-approved car loan under your belt and negotiating with the dealer to see if they can offer a better rate. For any type of car financing, be sure to take all the fees into account and look at what the total cost of the finance would be at the end of the term.

What are the differences between secured & unsecured car loans?

A secured car loan is one where an asset (the car you’re buying) is used as collateral against the loan, and can be reclaimed by the lender if repayments aren't met. Unsecured car loans do not use your car as security. Secured car loans are generally less risky for lenders to provide than unsecured car loans, so they often have lower interest rates. Read more about secured vs unsecured car loans!

Can I apply for a car loan with bad credit?

If you have bad credit, you can boost your chances of being approved for a car loan by: being realistic in your expectations & picking a modest car, being honest in your application, save some money beforehand, obtain stable employment, and clean up existing debts. Also work towards improving your credit history beforehand by paying bills and credit card repayments on time.

Am I eligible for a car loan?

Your eligibility for a car loan will depend on a variety of factors such as: the car model, whether the car is new or used, the lender and the loan you're applying for, your income, your credit rating and history, your assets and liabilities, and your history of savings. Having a bad credit rating doesn't disqualify you from getting car loans, but you might find it harder to get a good one.

What do I need to get a car loan?

Basic car loan requirements often include:

Proof of a steady, reasonably high income
Proof of identity: driver's license, Medicare card, passport etc.
Proof of residence
Proof of your ability to save money (try three-six months)
Proof of your assets (like shares) and liabilities (like credit card debt)

Not having these on hand could reduce or eliminate your chances of having a loan application approved.

What are the common car loan terms?

There are lots of different car loan terms available, but most reputable lenders will allow terms between one and seven years, with 10 years usually the maximum. Your car loan term is how long it would take to pay off the car loan without any extra repayments.

Can I refinance a car loan?

Yes, you can refinance your current car loan to a different car loan with different terms, or a different lender with a lower interest rate. When refinancing a car loan, the money borrowed from the new loan will cover the balance of your previous car loan, allowing you to pay off that old car loan before moving onto the new one.

Are auto loans unsecured?

Car loans can be both secured and unsecured, but the majority of them are secured, meaning the car is used as security against the loan. Should you fail the repay the loan, the car can be repossessed by the lender. Unsecured car loans (which are essentially personal loans) don't have the car as a security, but tend to come with higher rates to compensate for this.

How do car loan pre-approvals work?

A pre-approved car loan can be beneficial as it lets you know what you can afford before you go out to buy a car. To get a pre-approved car loan:

Compare car loan providers to make sure you’ve found the right one
Check your credit rating before applying
Gather all of the necessary documents (100 points of ID, income, proof of employment, assets and liabilities etc.)
Contact your chosen lender and tell them you want to apply for pre-approval

Car loan lender reviews

Marie Mortimer

Director,
loans.com.au

Do your research, choose an honest & transparent lender.

When it’s time for a new car, you might think it’s worth paying an extra percent or two at the dealership to get the car sooner - but we assure you that is not the case.

Many lenders, particularly online lenders like us, offer car loan pre-approval, and far lower interest rates than dealerships, potentially saving you hundreds, if not thousands on your car finance. Some can even turn around an approval and settlement for you in record time, so there’s no reason not to head to the dealership with your finance sorted so you’re prepared to buy.

Our top tip - always read through the fine print and opt for someone transparent and honest to help you with your car loan.

—Marie Mortimer,Director,
loans.com.au

View Car Loans

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Comparison Rate Warning and Base Criteria

For home loans, the base criteria include a $500,000 loan amount over 30 years. For car loans, the base criteria include a $30,000 loan over 5 years. For personal loans, the base criteria include a $20,000 loan over 5 years. These rates are only examples and may not include all fees and charges.

*The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Monthly Repayment Figures

Monthly repayment figures are estimates that exclude fees. These estimates are based on the advertised rates for the specified term and loan amount. Actual repayments will depend on your circumstances and interest rate changes.

Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you.

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Compare Car Loans Interest Rates from 5.66%

Cheap November Car Loan Interest Rates & Deals

Which lender is offering the lowest car loan rate?

How to get a low interest car loan?