Car subscription service Carbar found this was despite 41% of car owners not feeling in control of their car expenses, which costs $5,100 annually or $9,000 for those with loan repayments. 

The majority of people (34%) intend to buy a second-hand car this year, while around 22% intend to buy a new car. 

In the market for a new car? The table below features car loans with some of the lowest interest rates on the market.

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LenderCar LoanInterest Rate Comparison Rate* Monthly Repayment Interest Type Vehicle Type Maximum Vehicle Age Ongoing Fee Upfront Fee Total Repayment Early Repayment Instant Approval Online Application TagsFeaturesLinkComparePromoted ProductDisclosure
6.89% p.a.
8.02% p.a.
$592
Fixed
New
No Max
$8
$400
$35,549
  • Demo vehicles accepted up to 5,000km
  • 3-7 year loan terms available
  • Balloon option available for fixed rates
 Disclosure
6.57% p.a.
7.19% p.a.
$588
Fixed
New
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
 Disclosure
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
 Disclosure
5.66% p.a.
6.45% p.a.
$575
Fixed
New, Used
No Max
$0
$275
$34,515
6.24% p.a.
6.59% p.a.
$583
Fixed
New
No Max
$0
$250
$35,000
6.45% p.a.
6.72% p.a.
$586
Fixed
New
No Max
$0
$195
$35,177
6.49% p.a.
6.84% p.a.
$587
Fixed
New, Used
No Max
$0
$250
$35,211
6.50% p.a.
7.74% p.a.
$587
Fixed
New, Used
No Max
$0
$350
$35,219
6.99% p.a.
8.40% p.a.
$594
Fixed
New, Used
No Max
$15
$250
$35,634
6.52% p.a.
6.95% p.a.
$587
Fixed
New
No Max
$0
$0
$35,236
7.99% p.a.
8.99% p.a.
$608
Fixed
New, Used
No Max
$9
$265
$36,489
More car loans
  • 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.

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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

Around 2.2 million adults are looking for more flexible options, with one million looking to car subscription service, the majority of these millennials. 

Carbar chief executive Des Hang said consumers who had suffered financially as a result of COVID were looking for new ways to save on vehicles. 

"This study indicates that the typical Australian loses around $5131 per year on a new car, factoring in depreciation, insurance, maintenance and repayments," Mr Hang said.

"Almost half of Australians also indicated they do not feel in control of their car expenses too.

“Remarkably, those hardest hit by COVID, millennials, also tend to spend up to $7300 per year on their car -- thousands more each than both Gen X and the Baby Boomers." 

Mr Hang said many people didn't understand how expensive owning a car could be, and said subscription services offer a cheaper alternative.

“For us, this shows a lack of awareness in the market around the true cost of owning a car, a point we are keen to champion and increase awareness on," he said.

"Subscription is a flexible alternative to car ownership that can free up funds to service personal debt or gain greater control over your finances.”

Carbar costs start from $129 a week, which includes everything except fuel, with the company the first to launch car subscription services in Australia. 

Evidencing the popularity of the services, Car Next Door reported in November it had seen a 245% increase in customers between April and October, boasting 12,000 new users added each month. 

Holden attempted to join the movement in 2018, launching their own car subscription service Maven in partnership with GM, but this was shut down at the end of 2020 with just 6,000 active members. 

No cash incentives for buying electric vehicles

The Federal Government released its plan for supporting electric vehicles over the weekend, with no direct financial help for motorists purchasing electric vehicles. 

Instead, the government is looking at supporting the required infrastructure for electric vehicles and helping businesses convert their fleets to electric cars. 

It's a stark contrast to other developed nations, with the United Kingdom banning the sale of new petrol and diesel cars from 2030, and more than half of all new car sales in Norway now electric thanks to large tax incentives. 

The Australian Capital Territory is leading the way in Australia, offering two years free registration for electric vehicles from May, and interest-free loans of up to $15,000 to purchase electric vehicles. 

Photo by Patrick McGregor on Unsplash