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Compare Car Loans

If it’s time to upgrade your car and you’re looking for a loan, you can compare car loan options at Canstar, to help you choose the right one for you. It’s quick and simple, plus you’ll find loans from over 65 brands to compare. What’s more, it’s free to compare and you don’t need to share your details.

Instantly compare 280+ Canstar expert rated products based on these selections.


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  • Star Rating - lowest first
  • Star Rating - highest first
  • Interest rate - lowest first
  • Interest rate - highest first
  • Comparison rate^ - lowest first
  • Comparison rate^ - highest first
  • Monthly repayment - lowest first
  • Monthly repayment - highest first
Features and fees Glossary
  • tickcross Additional repayments
  • tickcross Redraw facility
  • tickcross Top-up facility
Glossary
  • dot Application fee: $400
  • dot Annualised fee: $0
  • dot Withdrawal fee: N/A
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
3.99% Glossary
Fixed Glossary
4.54% Glossary
$368.24 Glossary
Features and fees Glossary
  • tickcross Additional repayments
  • tickcross Redraw facility
  • tickcross Top-up facility
Glossary
  • dot Application fee: $195
  • dot Annualised fee: $0
  • dot Withdrawal fee: N/A
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
4.74% Glossary
Fixed Glossary
5.01% Glossary
$375.05 Glossary
Features and fees Glossary
  • tickcross Additional repayments
  • tickcross Redraw facility
  • tickcross Top-up facility
Glossary
  • dot Application fee: $195
  • dot Annualised fee: $0
  • dot Withdrawal fee: N/A
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
5.24% Glossary
Fixed Glossary
5.51% Glossary
$379.63 Glossary
Features and fees Glossary
  • tickcross Additional repayments
  • tickcross Redraw facility
  • tickcross Top-up facility
Glossary
  • dot Application fee: $400
  • dot Annualised fee: $0
  • dot Withdrawal fee: N/A
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
5.19% Glossary
Fixed Glossary
5.75% Glossary
$379.17 Glossary
Features and fees Glossary
  • tickcross Additional repayments
  • tickcross Redraw facility
  • tickcross Top-up facility
Glossary
  • dot Application fee: $300 up to $1200
  • dot Annualised fee: $0
  • dot Withdrawal fee: N/A
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
5.35% Glossary
up to 5.79% Glossary
Fixed Glossary
5.98% Glossary
up to 8.39% Glossary
$380.64 Glossary
up to $384.71 Glossary
Features and fees Glossary
  • tickcross Additional repayments
  • tickcross Redraw facility
  • tickcross Top-up facility
Glossary
  • dot Application fee: $349
  • dot Annualised fee: $0
  • dot Withdrawal fee: N/A
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
5.49% Glossary
up to 6.89% Glossary
Fixed Glossary
6.04% Glossary
up to 7.45% Glossary
$381.93 Glossary
up to $394.99 Glossary
Features and fees Glossary
  • tickcross Additional repayments
  • tickcross Redraw facility
  • tickcross Top-up facility
Glossary
  • dot Application fee: $250
  • dot Annualised fee: $0
  • dot Withdrawal fee: N/A
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
5.98% Glossary
Fixed Glossary
6.33% Glossary
$386.47 Glossary
Features and fees Glossary
  • tickcross Additional repayments
  • tickcross Redraw facility
  • tickcross Top-up facility
Glossary
  • dot Application fee: $0 up to $400
  • dot Annualised fee: $120
  • dot Withdrawal fee: N/A
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
5.75% Glossary
up to 6.99% Glossary
Variable Glossary
6.47% Glossary
up to 8.55% Glossary
$384.34 Glossary
up to $395.93 Glossary
Features and fees Glossary
  • tickcross Additional repayments
  • tickcross Redraw facility
  • tickcross Top-up facility
Glossary
  • dot Application fee: $349
  • dot Annualised fee: $0
  • dot Withdrawal fee: N/A
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
5.99% Glossary
up to 7.49% Glossary
Fixed Glossary
6.55% Glossary
up to 8.06% Glossary
$386.56 Glossary
up to $400.66 Glossary
Features and fees Glossary
  • tickcross Additional repayments
  • tickcross Redraw facility
  • tickcross Top-up facility
Glossary
  • dot Application fee: $349
  • dot Annualised fee: $0
  • dot Withdrawal fee: N/A
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
6.29% Glossary
up to 8.29% Glossary
Fixed Glossary
6.85% Glossary
up to 8.86% Glossary
$389.36 Glossary
up to $408.31 Glossary

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check Included
cross Not included
na Not applicable
canstar-rating-icon Canstar rating
indicative-canstar-rating-icon Indicative Canstar rating

Unsure of a term in the above table? View glossary

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Car loan guides and resources

If you’re looking for a new set of wheels, Canstar’s car loan guides and articles can help you navigate your finance options and discover new ways to save.

View all Car Loans FAQs

Latest in car loans

Recent Award Winners

What is a car loan?

A car loan is a type of personal loan used for buying a motor vehicle such as a car, ute, 4WD, motorbike or other road vehicle. If you need a vehicle but do not have enough savings to purchase one upfront, a car loan can be a helpful form of finance, as long as you can afford the repayments.

You can take out a car loan to purchase a new or used vehicle. The lender may specify a maximum age that the vehicle can be to qualify for the loan.

There are two main types of car loans, secured car loans and unsecured car loans.

What is a secured car loan?

Most car loans are secured. With secured car loans, the loan will typically be secured by the vehicle you are purchasing. This means that the lender can repossess your car and sell it if you don’t repay the loan on time.

What is an unsecured car loan?

Some lenders offer unsecured car loans. These are mainly available for used cars and are not secured by any property. Unsecured car loans typically have higher interest rates than secured car loans. This is because there is a greater risk to the lender. If you fail to make repayments, there is no particular asset tied to the loan for them to repossess. Instead, a lender may choose to take a borrower to court if their repayments are not met.

You can consider different types of car loans using the comparison selector tool at the top of this page.

elipses

What are the pros and cons of car loans?

There are both pros and cons to car loans. While a car loan might enable you to purchase a more expensive vehicle, and to balance repaying costs over a longer timeframe, you’ll usually need to pay interest, and there can be associated fees to consider. There are also the risks of repossession. Your credit score may also be impacted by you taking out a car loan.

What are the advantages of a car loan?

  • A car loan may enable you to purchase a more expensive car than what you might otherwise be able to afford if you paid for a car using cash upfront.
  • A car loan is repaid over a fixed term, so you have a clear timeline for when you can repay the loan amount (provided you make your repayments and pay any additional fees on time).
  • You typically have between one and seven years to repay the loan.
  • If you choose a car loan with a fixed interest rate, the interest rate will stay the same during the loan, so you can budget how much you need to repay every month.
  • If you take out a car loan and make the repayments consistently, there may be a favourable longer term impact on your credit score.

What are the disadvantages of a car loan?

  • Car loans can come with various fees. For example, there may be establishment fees, service fees, late payment fees, extra repayment fees and early repayment fees.
  • You must make your repayments or your lender could repossess your car (with a secured loan) or take you to court (with an unsecured loan).
  • You will pay more than just the principal cost of a car if you take out a car loan. You’ll also usually need to pay interest, and this can add to the total cost of purchasing a car overall.
  • If you take out a car loan and do not consistently make the repayments on time, there may be a negative effect overall on your credit score. This may, in turn, impact how lenders perceive you as a borrower for future requests for credit. If you have a low credit score, it can impact the interest rate you pay on personal and car loans.

Looking for the best car loan?

It’s important to shop around to find the best car loan for your circumstances. When comparing car loans, it’s worth considering both the price (including interest rate and fees) and features (for example, can you pay off the loan early?). To help consumers compare their options, Canstar researches and rates over 200 products from over 70 providers as part of its Car and Personal Loan Star Ratings.

How does Canstar compare car loans?

CANSTAR - Outstanding Value - Car LoanCanstar compares car loans using a unique and sophisticated Personal and Car Loans Star Ratings methodology, which looks at both price and features. The ratings represent a shortlist of products, enabling customers to narrow down their search to products that have been assessed and ranked.

Some of the features Canstar considers for car loans are:

  • total cost including the interest rate, upfront fees and ongoing fees
  • loan purpose
  • security requirements
  • repayment requirements and options
  • redraw, top up, offset and switching facilities
  • online self service for the loan

Features are evaluated and weighted that impact consumers throughout the loan process, from researching product information through to the application and settlement process, loan management, customer service, and loan closure options.

You can compare car loans based on your own requirements using the comparison selector tool at the top of the page.

elipses

Car loan rates in November 2021

Interest rates on car loans can change regularly, as lenders compete for customers. If you’re car shopping and need to borrow money for the purchase, it can pay to also shop around a range of car loans.

To help you understand whether a car loan you’re considering is competitive in the current market, below we show the average and lowest interest rates and application fees on Canstar’s  database, including car loans for both new and used vehicles, as at 1 November, 2021.

Average secured car loan rate (new vehicles): 6.07%
Lowest secured car loan rate (new vehicles): 3.99% (various comparison rates)

The average application fee on secured new vehicle car loans is $203, while the lowest is $0.

Average secured car loan rate (used vehicles): 6.80%
Lowest secured car loan rate (used vehicles): 3.99% (various comparison rates)

The average application fee on secured used vehicle car loans is $215, while the lowest is $0.

Source: www.canstar.com.au. Based on secured new car and secured used car loans on Canstar’s database for a loan amount of $30,000 and a loan term of five years. Includes variable and fixed rate loans. Excludes loans limited to the purchase of environmentally-friendly products. Average rate based on the mid-rate for loans that supply a rate range.

Looking for the cheapest car loan?

If you’re looking for finance to buy a car, you might think that signing up for the cheapest car loan you can find is the way to go. It’s worth keeping in mind that going with the lowest interest rate won’t necessarily mean you’re getting the cheapest car loan deal overall.

Upfront and ongoing fees can eat into some of the money you’d save in interest, while the features you get with the loan may boost the value you’re getting overall. For example, a car loan with a slightly higher interest rate that allows you to make extra repayments and pay off the loan early without penalty might better suit the needs of some borrowers, helping them get ahead faster than a ‘cheapest’ car loan rate might.

It can be a good idea to watch out for car loans that appear cheap but which require a balloon payment in order for you to own the car. This is a one-off lump sum payment at the end of the loan term that can add significantly to the cost.

What are the lowest car loan rates?

You can use Canstar’s comparison selector tool (at the top of the page) to find the lowest car loan rates from providers in our database. Simply compare loans and filter the results by the lowest advertised rate.

You might also want to check out the comparison rate. A comparison rate takes into account the interest rate plus most ongoing fees and charges. It’s designed to give you a more accurate estimate of the total cost of the loan per year.


Author: Nina Tovey

Author Nina Tovey

As Canstar’s Editor-in-Chief, Nina heads up a team of talented journalists committed to helping empower consumers to take greater control of their finances. Previously Nina founded her own agency where she provided content and communications support to clients around Australia for eight years. She also spent four years as the PR Manager for American Express Australia, and has worked at a Brisbane communications agency where she supported dozens of clients, including Sunsuper and Suncorp.

Nina has ghostwritten dozens of opinion pieces for publications including The Australian and has been interviewed on finance topics by the Herald Sun and the Sydney Morning Herald. When she’s not dreaming up ways to put a fresh spin on finance, she’s taking her own advice by trying to pay her house off as quickly as possible and raising two money-savvy kids.

Nina has a Bachelor of Journalism and a Bachelor of Arts with a double major in English Literature from the University of Queensland. She’s also an experienced presenter, and has hosted numerous events and YouTube series.

You can follow her on Instagram or Twitter, or Canstar on Facebook.


This content was reviewed by our Deputy Editor Sean Callery and Sub Editor Tom Letts before it was published as part of our fact-checking process. You can also read more about Canstar’s editorial team.

Car Loans Information

Car Loan Repayment Calculator

Canstar’s Car Loan Repayment Calculator could help you figure out what your car loan repayments may be and how much interest you pay.

Simply enter the amount you wish to borrow, the current interest rate, the loan term and how regular the repayments will be to see how much your repayments could be.

Car Loan Repayment Calculator

Car loan providers we research and rate

Below is a list of the Car Loan Award Winners from Canstar’s 2021 Personal and Car Loan Star Ratings & Awards:

  • Credit Union SA
  • Greater Bank
  • loans.com.au
  • Teachers Mutual Bank
  • The Mac
  • UniBank

Source: 2021 Car and Personal Loan Star Ratings & Awards.

You can compare car loans using the comparison selector tool at the top of this page.

Important Information

For those that love the detail

The Car Loan Star Ratings were awarded in November 2020. The results don’t include every provider in the market and we may not compare all features relevant to you. Current rates and fees are displayed and may be different to what was rated. The initial table display is sorted by Star Ratings, then lowest comparison rate, then alphabetically by brand. You can use the sort buttons at the top of each column to re-order the display. Learn more about our Car Loans Star Rating Methodology. The rating shown is only one factor to take into account when considering products.

The products and Star Ratings in the table might not match your exact inputs in the selector. Sometimes the methodology uses profiles with categories or bands (e.g. income, loan amount or monthly spend), but sometimes a single methodology, without any categories or bands, is applied. The results will show the products that most closely match your selection, based on our profiles. If you are unsure about any terms used in the comparison table please refer to the glossary.

Any advice on this page is general and has not taken into account your objectives, financial situation or needs. Consider whether this general financial advice is right for your personal circumstances. Canstar provides information about credit products. We’re not suggesting or recommending a particular credit product for you. If you decide to apply for a loan, you will deal directly with the provider, not with Canstar. Consider the Target Market Determination (TMD) before making a purchase decision. Contact the product issuer directly for a copy of the TMD. It’s important you check rates and product information directly with the provider. For more information, read our Detailed Disclosure. ^Read the Comparison Rate Warning.

Canstar may earn a fee from its Online Partners for referrals from its website tables, and from sponsorship or promotion of certain products. Fees payable by product providers for referrals and sponsorship or promotion may vary between providers, website position, and revenue model. Sponsorship/promotion fees may be higher than referral fees. If a product is sponsored or promoted, it’s an ad and it is clearly marked as such. An ad might appear in different places on our website, such as in comparison tables and articles. Ads may be displayed in a fixed position in a table, regardless of the product's rating, price or other attributes. The location of an ad doesn’t indicate any ranking or rating by Canstar. Payment of fees for ads does not influence our Star Ratings. See How We Get Paid to find out more.