To help more Australians find the best car loan our money experts analyse 64 car loans every month using a data-driven methodology. This takes into account both car loan fees and interest rates: the lower the better.
To ensure our picks are useful for more borrowers we've created 4 categories:
All our car loan picks come from lenders which have a commercial partnership with Finder. While these are some of the market's most competitive rates there may be more suitable loans on the market for you.
The Finder Customer Satisfaction Awards ask Australians which brands and products they trust and love the most. We asked hundreds of Australians to rate their providers based on customer service, features and benefits, ease of application, fees and interest rates, and trustworthiness and reliability.
| Lender | Overall satisfaction | Trustworthy/reliable |
|---|---|---|
 | ★★★★★ 4.32/5 | 94% |
 | ★★★★★ 4.25/5 | 91% |
 | ★★★★★ 4.23/5 | 97% |
 | ★★★★★ 4.00/5 | 82% |
 | ★★★★★ 3.69/5 | 77% |
We currently don't have that product, but here are others to consider:
How we picked theseTo make comparing car loans even easier we came up with the Finder Score. Interest rates, fees and features across 200+ car loan products and 100+ lenders are all weighted and scaled to produce a score out of 10. The higher the score, the more competitive the product.
*Interest rates and fees from Finder's database. Average loan balance from Finder's Consumer Sentiment Tracker.
Car loan interest rates vary quite a lot. You could get a loan with an 8.00% interest rate or one with a 12.00% rate. It depends on both the loan and your own circumstances.
| Loan | A | B |
|---|---|---|
Loan amount | $25,000 | $25,000 |
Interest rate | 7.0% | 12.0% |
Loan term | 4 years | 4 years |
Monthly repayments | $599 | $659 |
Total loan cost (including interest) | $28,736 | $31,601 |
Savings | $2,865 cheaper | N/A |
Over 4 years, Loan A would save you well over $2,000 in interest charges.
Make sure the car you're buying is eligible for the loan. Secured car loans are ideal for new cars. Lenders won't take an older car as security because it won't hold its value.
If you are buying an older car the best car loan for you is probably an unsecured car loan.
If you're buying an electric vehicle you can probably get a better deal with a green car loan.
The faster you pay off the loan the less interest you'll pay. Some car loans won't let you make extra repayments or they'll charge a fee to do so. But if you can, you might be able to pay off the loan early.
The fees that come with your loan can make a big difference to how much you end up paying. Car loans can have several fees, including monthly service fees and one-off application fees.
Fees don't have to be a deal-breaker, but be sure to factor them in when comparing costs.
Car loan terms are often flexible and can last for 1 to 7 years. A shorter loan term means larger monthly repayments. But you pay less interest because you get out of debt faster.
A longer loan term means lower monthly repayments but more interest in the long term. Finding the best car loan term is about striking a balance between affordable monthly repayments and a reasonable repayment term that doesn't cost you too much in interest.
| Amount borrowed | Loan Term | Interest paid | Difference |
|---|---|---|---|
$30,000 | 3 years | $2,369 | |
$30,000 | 5 years | $3,968 | +$1,599 |
$30,000 | 7 years | $5,617 | +$3,248 |
If your car loan has a fixed rate then there will be a break fee if you try to pay it off early. Some car loans look good upfront but have a balloon payment at the end that can be very expensive.
The car loan rate you'll actually get depends on your individual credit score and financial circumstances.
This means the best car loans go to borrowers with high credit scores and minimal debts. Before applying for a car loan it's a good idea to check your credit score.
You can get a better car loan rate by improving your credit score before you apply.
"While interest rates have risen for home loans, credit cards and savings accounts in the last 2 years, car loans remain remarkably competitive. A borrower with an Excellent credit score who does their research can get a rate around 7%. But if you don't shop around and your credit score is below average, you could end up with a car loan rate above 20%."
The best car loan can look different for every borrower. And lenders change their rates and fees all the time. That's why we review our best car loan picks every month.
Different types of lenders have different benefits and drawbacks too.
Westpac and the Commonwealth Bank currently have the best car loan rates among the Big Four banks.
| Bank | Interest rate from | Comparison rate from |
|---|---|---|
| ANZ Fixed Rate Personal Loan | 7.49% p.a. | 8.18% p.a. |
| CommBank Secured Car Loan | 6.49% p.a. | 7.9% p.a. |
| NAB Fixed Rate Personal Loan for a Car | 6.49% p.a. | 8.05% p.a. |
| Westpac Car Loan | 6.49% p.a. | 7.69% p.a. |
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Learn what you need to know about the used car buying process, ranging from how to finance your vehicle to what you need to check on the car.
Our car loan repayment calculator will help you work out how much your monthly, weekly or fortnightly car loan repayments will be to help you budget.
If you're looking to a buy a car you can consider a secured car loan to help finance your vehicle purchase. The loan is guaranteed so you can enjoy a lower interest rate – compare your options and apply today.
You can still get a car loan if you want to finance a used car. Find out how you can get a used car loan and see what rates are available for the used car you want. Learn how to best compare lenders and apply for your loan today.
Whether you're upgrading your current car or looking for a new vehicle for your first car purchase, a new car loan can help you finance your set of wheels. Find out everything you need to know about new car loans to help you find the right loan for you.
Don't pay an outrageous interest rate on your next car loan – compare loans before you buy.
I’m From Papua New Guinea would be possible to apply for monthly payment for car?
Hello Loli,
Your eligibility for a car loan depends on your visa type too. If you have a working or residency visa that is valid for over 12 months you will have an easier time getting approved. But it depends on the lender.